Setting up in India: how the route differs by home country

What changes with your home country?

India’s rules for a foreign-owned private limited company do not depend on where the parent sits. In most sectors you can hold 100% under the automatic route, you need at least two directors, and one director must have stayed in India for at least 182 days in the financial year. The incorporation process is the same.

Four things do change: how your parent documents are authenticated, the tax treaty behind payments to you, the trade and investment agreements that surround the deal, and the ownership disclosure that banks and regulators ask for.

How do the main markets compare?

The FDI shares are DPIIT figures for investment recorded as coming from each country, meaning the immediate investor, not the ultimate owner. Each country has its own double taxation avoidance agreement with India, with different ceilings on dividends, royalties and fees. See the wholly owned subsidiary page for the entity itself.

What stays the same whichever country you are in?

Capital arrives through an authorised dealer bank, the subsidiary reports it on RBI’s FIRMS portal, shares are allotted within 60 days, and the subsidiary files Form FC-GPR within 30 days of allotment. The parent remits the funds and supplies documents and KYC; the Indian subsidiary handles the FEMA reporting. Transfer pricing applies to payments to the parent, reported on Form 48. Bank account opening is often the slowest step, as the remittance guide explains.

Which country page should you read first?

Start with the page for your parent’s home country. If your group has entities in more than one country, choose the entity that will hold the Indian shares, because its home country decides the documents and treaty rates.

Companies from the UAE should allow extra lead time, because their documents go through consular attestation: notarisation, attestation by the UAE’s foreign ministry, then legalisation by the Indian mission.

Note: Rules and forms change often. This page is general information, not legal or tax advice. Check the current position with a practising Chartered Accountant or Company Secretary before you act.

General information only, not legal or tax advice. Rules and forms change, so confirm the current position with a practising Chartered Accountant or Company Secretary before you act. See our disclaimer.