Setting up an Indian subsidiary from Europe

What is the same for every European parent?

Europe is many jurisdictions, but the Indian side does not change with your passport. The Consolidated FDI Policy 2020 permits up to 100% foreign investment under the automatic route in sectors that are not capped or prohibited. Prohibited sectors, such as lottery, gambling and tobacco manufacture, stay closed to every foreign investor. See the wholly owned subsidiary page and our guide on 100% ownership.

The Companies Act 2013 rules are also the same: at least two directors and two members, and at least one director who has stayed in India for at least 182 days in the financial year. The FEMA sequence for the share subscription is identical too: for this first capital injection, the subscriber shares are already committed in the Memorandum of Association, so share certificates are issued at the first board meeting rather than under the 60-day allotment rule for a later, fresh issue, and the subsidiary files Form FC-GPR within 30 days of allotment. The parent remits the funds and supplies documents and KYC.

This page covers EU member states, Switzerland and Norway. UK parents have their own page: see the United Kingdom.

What differs from one European country to the next?

Three things depend on where your parent is, and none of them can be assumed from a neighbouring country.

1. Tax treaty. India’s double taxation agreements are bilateral. Rates and conditions on dividends, royalties and technical fees differ by treaty, and some may be category-based. We do not quote European rates here, so check the treaty for your country.
2. Tax residency certificate. Treaty relief needs proof that your parent is resident in its home country. The issuing authority, format and turnaround are set by that country, not by India. Under the Income-tax Act, 2025, the supplementary declaration is Form 41, replacing Form 10F.
3. Documents and notarisation. Notary rules, who may act as a notary, and which authority issues the apostille vary by country, and sometimes by region within a country.

Ask your own notary and tax adviser what your country requires, and share it with us before you order documents.

How do you authenticate European documents for India?

India is a party to the Hague Apostille Convention, and the Ministry of External Affairs says a document apostilled in a member country needs no further attestation or legalisation for use in India. The HCCH table lists Germany, France, the Netherlands, Switzerland, Norway, Ireland, Italy, Spain, Sweden, Belgium, Poland, Cyprus and Luxembourg as parties. That is the list we checked, not a full audit of Europe. Confirm your own country on the HCCH table.

For a country that is a party, a notary public notarises the parent’s and directors’ documents and your country’s competent authority then apostilles them. For a European country outside the Convention, the route is consular attestation: notarisation, attestation by your foreign ministry, then legalisation by the Indian mission. The documents guide lists the full pack.

Trademark and name approval. If your proposed company name is based on your trademark, bring the trademark certificate. An internationally valid trademark, as recorded with WIPO, makes name approval easier in India. Also bring a no objection letter from the trademark owner, so that the name approval goes smoothly.

Where do the India-EU and India-EFTA trade agreements stand?

India-EU. The European Commission formally submitted the finalised India-EU Free Trade Agreement text to the Council of the EU in September 2026 for signature and conclusion. Signing is expected in late 2026, and the agreement is not yet in force.

India-EFTA. EFTA reports that the Trade and Economic Partnership Agreement entered into force on 1 October 2025 between India and Iceland, Liechtenstein, Norway and Switzerland. The parties committed to mobilise USD 100 billion of investment in India over fifteen years. That is a shared target, not a term you can rely on for your own project.

Neither agreement changes the FDI route, the Companies Act steps or FEMA reporting for your subsidiary. Treat them as background, and check whether any tariff or services benefit applies to your business.

What does DPIIT record for European investors?

DPIIT’s fact sheet for April 2000 to March 2026 records the Netherlands as the fourth-largest source of cumulative equity inflows into India, at about US$56.7 billion or 7.19%. The same fact sheet also lists Germany, Switzerland and France among the countries it reports.

DPIIT counts the country of the immediate investor, so read these as investment recorded as coming from those countries. A holding company in one country may hold assets owned by a group elsewhere.

If your business handles personal data of European staff or customers, GDPR transfer rules may apply when that data moves to India, so take advice from your data-protection adviser.

Where does ProLead fit?

ProLead works with European parents remotely. We coordinate parent-country documents with your local notary and advisers, and handle the incorporation with our practising professionals and support the subsidiary’s FEMA filings. ProLead has experience working with German businesses, so we can cover Europe with staff available in your parent’s time zone.

For costs and timing see cost and timeline, or book a free consultation.

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.