Indian Subsidiary Registration

Indian Subsidiary Registration: Set Up a Company in India as a Foreign National or NRI

Setting up an Indian subsidiary is how foreign nationals, NRIs, and overseas businesses get a legal, tax-compliant presence in India to hire, invoice, and operate. This guide covers what an Indian subsidiary is, eligibility, documents, the incorporation process, real costs, and how KanoonPe manages it end-to-end - with flat pricing and a filed-on-time-or-refund promise.

Quick summary

• What it is: A Private Limited Company incorporated in India where a foreign entity, foreign national, or NRI holds shares - up to 100% in most sectors under the automatic route.
• Governed by: Companies Act, 2013 and the Foreign Exchange Management Act (FEMA), 1999, per RBI's FDI policy.
• Best for: Foreign companies and NRIs wanting a directly owned Indian legal entity.
• Minimum: 2 directors (one resident in India), 2 shareholders.
• KanoonPe price: Flat, all-inclusive quote on a free callback · Timeline: typically 15–25 working days.

Quick facts

What is an Indian Subsidiary?

An Indian Subsidiary is a company incorporated in India under the Companies Act, 2013 - most commonly as a Private Limited Company - in which a foreign company, foreign national, or NRI holds a controlling or full stake. It functions as a fully independent Indian legal entity, governed by Indian company law, even though its ownership traces back overseas.

Foreign investment into an Indian subsidiary is regulated by FEMA, 1999 and the RBI's Foreign Direct Investment (FDI) policy. Most sectors permit 100% FDI under the automatic route, meaning no prior government approval is needed - only post-investment reporting to the RBI. A limited set of sectors (defence, telecom, media, and a few others) fall under the government route, requiring prior approval, or carry sectoral caps.

Once incorporated, an Indian subsidiary can open bank accounts, hire employees, sign contracts, own property, and pay Indian corporate tax - just like any domestically owned Pvt Ltd company.

Who should register an Indian Subsidiary?

Registering an Indian subsidiary makes sense if you:

• Are a foreign company wanting a directly owned Indian legal entity to hire, sell, and invoice locally.
• Are an NRI or OCI wanting to run an India-facing business with full ownership control.
• Need to bill Indian customers in INR, comply with Indian GST, and build local credibility.
• Want to repatriate profits legally through dividends, subject to FEMA and tax rules.

If you only need a representative presence without commercial activity, a Liaison Office or Branch Office may fit better - see the comparison below.

Benefits of registering an Indian Subsidiary

1. Full or majority ownership - Up to 100% foreign shareholding permitted in most sectors under the automatic route.
2. Independent legal entity - Limited liability, separate from the foreign parent, and full contracting capacity in India.
3. Local commercial operations - Can invoice Indian customers, hire staff, and sell products/services directly, unlike a liaison office.
4. Access to Indian banking and credit - Easier current account access and eligibility for Indian business loans.
5. Repatriation of profits - Dividends can be remitted abroad, subject to FEMA reporting and applicable withholding tax.
6. Credibility for Indian clients and government tenders - An Indian-incorporated entity is often preferred over a foreign entity for local contracts.

Documents required for Indian Subsidiary registration

For Indian resident director(s)

• PAN card, Aadhaar/Voter ID, address proof, photograph

For foreign national/NRI directors & shareholders

• Passport (mandatory, notarised/apostilled in the home country)
• Overseas address proof (utility bill/bank statement, notarised/apostilled)
• Photograph

For the foreign parent company (if a corporate shareholder)

• Certificate of incorporation of the foreign entity (notarised/apostilled)
• Board resolution authorising the Indian subsidiary investment
• Memorandum/charter documents of the foreign entity

Registered office proof (India)

• Rent/lease agreement + NOC from owner, or ownership documents
• Latest utility bill for the office address

Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for your Indian subsidiary within one business hour.

Indian Subsidiary registration process (step by step)

1. Obtain DSC for all directors, including the resident Indian director and foreign directors.
2. Apply for name reservation (SPICe+ Part A) under Section 4 of the Companies Act, 2013.
3. Apply for DIN for proposed directors through SPICe+.
4. Draft MOA and AOA, and get foreign shareholder/director documents notarised and apostilled (or consularised, per the home country's status under the Hague Convention).
5. File SPICe+ Part B (INC-32) with PAN, TAN, and AGILE-PRO for GST/EPFO/ESIC/bank account.
6. Receive the Certificate of Incorporation with your CIN, PAN, and TAN.
7. Open a current bank account and bring in foreign investment through normal banking channels.
8. File Form FC-GPR with the RBI within 30 days of share allotment to report the foreign investment.

How much does Indian Subsidiary registration cost in India?

KanoonPe offers a flat, all-inclusive quote - professional fees, DSC, standard filings, and FC-GPR support bundled into one transparent number. Government fees, stamp duty, and overseas notarisation costs that vary are billed at actuals and shown upfront.

Indian Subsidiary registration timeline

Every KanoonPe order ships with a written SLA - filed on time or you get a refund.

Post-registration compliance

• File FC-GPR with the RBI within 30 days of allotting shares to the foreign shareholder.
• File the Annual Return on Foreign Liabilities and Assets (FLA) every year - see FLA Return Filing.
• File annual ROC returns (AOC-4, MGT-7) and conduct a statutory audit - see ROC Annual Compliance.
• Comply with transfer pricing rules for transactions with the foreign parent, including Form 3CEB where applicable.
• Register for GST if turnover crosses the threshold or you sell inter-state.
• Maintain FEMA/FDI compliance on an ongoing basis - see FDI / FEMA Compliance.

Indian Subsidiary vs Branch Office vs Liaison Office

Choose an Indian Subsidiary for full commercial operations and ownership flexibility; a Branch Office to extend the parent's existing business; a Liaison Office for representation only.

Why choose KanoonPe

• Transparent flat pricing - one all-inclusive number; government and apostille costs at actuals, shown upfront.
• Filed-on-time or refund - every order ships with a written SLA.
• One accountable case owner - a single named manager owns your incorporation end to end.
• Live status tracking - track DSC, filings, and FC-GPR status in real time.

Trusted by 50,000+ businesses, rated 4.7/5, with 500+ verified CAs, CS and lawyers.