100% Foreign Ownership

Foreign Subsidiary CompanySetup in India

Set up a foreign subsidiary company in India with 100% foreign ownership. Expert assistance for company incorporation, RBI compliance, FEMA reporting, and complete legal support. Fast processing in 15-20 days.

15-20 Days
Setup Time
100%
Foreign Ownership
RBI
Compliance

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Key Benefits of Foreign Subsidiary

100% Foreign Ownership

Complete control and ownership without Indian partner requirement in most sectors.

Limited Liability

Separate legal entity with limited liability protection for parent company.

Full Business Operations

Can conduct all business activities permitted under Indian law.

RBI Automatic Route

No prior RBI approval required for most sectors under automatic route.

Tax Benefits

Eligible for tax benefits, DTAA benefits, and lower corporate tax rates.

Easy Expansion

Easy to expand operations, raise capital, and scale business in India.

Setup Process

FastLegal streamlines your foreign subsidiary setup process

1. Documentation

Prepare all required documents including parent company certificates, board resolutions, and identity proofs.

2. Name Reservation

Reserve unique company name through MCA RUN system and obtain DIN for directors.

3. Incorporation

File SPICe+ form with ROC, obtain Certificate of Incorporation, and register for PAN/TAN.

4. Compliance

File FC-GPR with RBI, open bank account, register for GST, and complete post-incorporation compliance.

Frequently Asked Questions

What is a foreign subsidiary company in India?

A foreign subsidiary is a private limited company incorporated in India that is 100% owned by a foreign parent company. It operates as an independent legal entity with limited liability and can conduct all business activities permitted under Indian law.

Can I have 100% foreign ownership in a subsidiary?

Yes, in most sectors, foreign companies can have 100% ownership through a wholly-owned subsidiary under the automatic route. However, certain sectors like defense, media, insurance, and banking have sectoral caps and require government approval.

What is the minimum capital requirement for a foreign subsidiary?

There is no minimum capital requirement. However, the company must have a minimum paid-up capital of ₹1 lakh (though this need not be deposited upfront). The actual capital depends on business requirements.

Do I need RBI approval for a foreign subsidiary?

No prior RBI approval is required for most sectors under the automatic route. However, post-investment reporting to RBI is mandatory through FC-GPR (Foreign Currency-Gross Provisional Return) within 30 days of share issuance.

What is FEMA compliance for foreign subsidiaries?

FEMA compliance involves reporting foreign investments to RBI. Foreign subsidiaries must file FC-GPR for share issuance, FC-TRS for share transfers, and annual returns. Non-compliance can result in penalties.

Do I need an Indian resident director?

Yes, a private limited company in India requires at least one director who is a resident of India (stayed in India for at least 182 days in the previous calendar year). This is mandatory under the Companies Act, 2013.

How long does it take to set up a foreign subsidiary?

A foreign subsidiary can be incorporated in 15-20 working days, subject to ROC processing time and document verification. This includes name reservation, incorporation filing, PAN/TAN registration, and bank account opening.

What are the tax implications for foreign subsidiaries?

Foreign subsidiaries are taxed as Indian companies at 25-30% corporate tax rate (depending on turnover). They are also subject to GST, TDS, and other Indian tax laws. DTAA benefits may apply based on the country of origin.

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