Setting up a subsidiary in India
Registering a private company in India is mostly done online. The preparation, the documents and finding a director who lives in India take longer.
Before you start
- Check the sector's FDI route. Most sectors allow 100% foreign ownership under the automatic route; some need government approval or have caps. See FDI rules.
- Find a resident director. At least one director must have stayed in India for at least 182 days in the previous year.
- Choose a registered office address in India.
- Prepare parent documents with apostille and translations.
The steps
- Digital signature certificates for the proposed directors and subscribers.
- Director identification numbers, usually applied for within the incorporation form.
- Name reservation through the Ministry of Corporate Affairs portal.
- SPICe+ incorporation form, filed online with the memorandum and articles of association. The integrated form also covers tax registrations and other numbers.
- Certificate of incorporation, issued with the company's PAN and TAN.
- Bank account and receipt of share capital from the parent through banking channels.
- FDI reporting: report the share allotment to the RBI through the FIRMS portal within the deadline (form FC-GPR, typically within 30 days of allotment).
- GST registration if thresholds are met or for inter-state supply.
- Labour registrations (provident fund, state insurance, shops and establishments) as you start hiring.
After incorporation
- Appoint an auditor within the statutory deadline
- Hold board meetings and keep statutory registers
- File annual returns and financial statements
- File transfer pricing documentation for transactions with the parent
- Report foreign investment annually
Typical costs and timing
Government fees and stamp duty are modest; professional fees vary widely. With complete documents, incorporation itself can take a few weeks. Opening the bank account and receiving capital can add time.
