How do you decide?
Start with three questions. Will your India team sell to Indian customers, sign contracts or receive payment in India? How many people will you hire in the first year? And who inside your group must control contracts, pricing and intellectual property?
| If your answer is | The route to consider first |
|---|---|
| We will invoice customers, hire a team or open a delivery centre | A wholly owned subsidiary |
| We want to provide a permitted service in our own name and we have a profit record | A branch office |
| We want to explore the market and represent the parent, with no trading | A liaison office |
| We want a few people working in India quickly, without our own entity | An Employer of Record |
How do sector and control shape the choice?
Sector comes first. Most sectors allow 100% foreign ownership under the automatic route, but some are prohibited, capped or need approval, and the answer can rule out an option before you compare anything else.
Then weigh control against speed. A wholly owned subsidiary gives you a separate company, your own bank account and freedom to hire, and it carries an annual compliance calendar. A liaison office or an Employer of Record starts with fewer steps but limits what your people may do.
How does tax exposure change the choice?
How your India activity is structured affects how the income is taxed and whether it creates a taxable presence for the parent, so take advice on that before you settle.
Where to read next
Our entity types comparison sets the options side by side in a table. If your question is about hiring, read Employer of Record versus subsidiary. If you are choosing an adviser, read how to choose an India entry partner. For fees and timing, see the cost and timeline page, and you can book a free consultation to test your plan.
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.
Subsidiary, branch, liaison office or LLP: which entity for India?
Compare a wholly owned subsidiary, branch office, liaison office and LLP for a foreign company in India: activity, approval route, eligibility and fit.
Read more → ComparisonEmployer of Record or your own subsidiary in India?
An Employer of Record suits small teams and market tests. A subsidiary suits larger teams and contract authority. Compare control, cost and PE risk.
Read more → ComparisonHow to choose an India entry partner
What to ask an India set-up provider, which credentials to look for and which red flags to avoid, before you appoint a partner for your subsidiary.
Read more →Frequently asked questions
What is the difference between a subsidiary and a branch office in India?
Should we hire through an Employer of Record before setting up a company?
How do we choose an adviser for the India set-up?
Sources
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.