How to Set Up explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A foreign company can set up an Indian subsidiary (usually a private limited company) to do business in India. Here is the process.
Structure options
- Wholly-owned subsidiary (private limited company)
- Joint venture with an Indian partner
- Liaison/branch/project office (limited activities)
Process
- Reserve the name and incorporate via SPICe+
- Have at least one resident director
- Obtain PAN, TAN, GST and a bank account
- Report the FDI to the RBI (FC-GPR)
Compliance
Follow FEMA/FDI rules, RoC filings and annual FLA reporting.
Frequently Asked Questions
How does a foreign company set up in India?
Usually by incorporating a wholly-owned private limited subsidiary via SPICe+.
Does an Indian subsidiary need a resident director?
Yes — at least one director must be resident in India.
What FDI reporting applies?
Form FC-GPR to the RBI on allotment of shares.
What are the alternatives to a subsidiary?
A joint venture, or a liaison/branch/project office for limited activities.
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