Business Registration · Subsidiary Company

Subsidiary Company incorporation for Indian operations.

Incorporation of an Indian Subsidiary Company for a foreign parent — Private Limited Company registration, FEMA compliance, FDI reporting, and complete post-incorporation setup — handled by our qualified Company Secretaries in Mumbai.

When a foreign company decides to establish a presence in India, the most common and legally robust route is to incorporate an Indian Subsidiary — a Private Limited Company in which the foreign parent holds a majority or 100% shareholding. The subsidiary is a separate legal entity incorporated in India, subject to Indian law, and can own property, hire employees, enter contracts, and carry on business in India in its own name.

The incorporation process for a foreign subsidiary involves the same SPICe+ route as any Indian Private Limited Company — but with additional requirements. At least one director must be a resident of India. Foreign shareholding is subject to the FDI policy of the Department for Promotion of Industry and Internal Trade (DPIIT), and the initial share subscription must be reported to the RBI through the FC-GPR filing within the prescribed timeline after allotment.

At Beyonte Compliances, we manage the complete Indian subsidiary setup — from incorporation and foreign director DSC to the FC-GPR filing and the first year's secretarial and FEMA compliance calendar. Our team co-ordinates between the foreign parent's legal counsel and the Indian regulatory framework, ensuring nothing is missed on either side of the transaction.

What Our Subsidiary Incorporation Covers

Indian Company Incorporation

Incorporation of the Indian Private Limited Company as a subsidiary — DSC for foreign and Indian directors, name reservation, SPICe+ filing, MoA, AoA, and Certificate of Incorporation.

Resident Director Requirement

Identification and appointment of an Indian resident director where the foreign parent does not have one — ensuring compliance with the mandatory residency requirement under the Companies Act.

Foreign Director DSC & DIN

Procurement of Class 3 DSC and DIN for foreign directors — with guidance on the apostille and notarisation requirements for documents executed outside India.

FEMA / FDI Compliance

Review of the FDI policy applicable to the subsidiary's sector — confirming the automatic route is available or advising on the approval route where government approval is required.

Initial Share Allotment

Processing of the initial share subscription by the foreign parent — preparation of allotment documents, share certificates, and register of members.

FC-GPR Filing

Filing of the FC-GPR (Foreign Currency — Gross Provisional Return) with the RBI within 30 days of share allotment — reporting the foreign direct investment received by the Indian subsidiary.

Post-Incorporation Compliance

Setting up statutory registers, first board meeting documentation, annual compliance calendar, and FEMA annual return (FLA) obligations.

Bank Account & Repatriation Guidance

Guidance on opening the subsidiary's NRE/NRO bank account, remittance of funds from the foreign parent, and dividend repatriation compliance.

Our Process

Structure & FDI Policy Review

Confirming the applicable FDI sector, the permitted shareholding route (automatic or government approval), and the pricing guidelines for the initial share issue.

Director & Document Preparation

Collecting KYC for all directors — with apostille guidance for foreign directors — and arranging DSCs and DINs.

Incorporation Filing

Name reservation and SPICe+ filing — with MoA and AoA tailored to the subsidiary's planned Indian business activity.

Share Allotment & FC-GPR

Processing the initial share subscription, issuing share certificates, and filing the FC-GPR with the RBI within the 30-day deadline.

Ongoing Compliance Setup

Delivering the complete incorporation document set and setting up the first year's secretarial, FEMA, and income tax compliance calendar.

Why It Matters

✓Separate legal entity — parent's liability does not extend to Indian operations

✓100% FDI permitted in most sectors through the automatic route

✓FC-GPR filed within 30-day RBI deadline — no penalty exposure

✓Resident director requirement managed from day one

✓FDI policy review before incorporation — no post-facto surprises

✓Complete MoA and AoA tailored to planned Indian activities

✓Annual FEMA (FLA) return and secretarial compliance covered

✓Co-ordinated with foreign parent's counsel for a seamless setup

Frequently Asked Questions

Yes. 100% foreign direct investment is permitted in most sectors in India through the automatic route — meaning no prior government approval is required. Sectors with FDI caps or approval requirements include insurance, banking, defence, media, and a few others. We review the applicable FDI policy for your sector before incorporation.

Yes. The Companies Act, 2013 requires every company incorporated in India to have at least one director who has been ordinarily resident in India for a total period of at least 182 days during the previous calendar year. We assist in identifying and appointing a suitable resident director where required.

FC-GPR (Foreign Currency — Gross Provisional Return) is the RBI reporting form that a company must file within 30 days of receiving foreign direct investment and allotting shares to a foreign shareholder. Failure to file within the timeline attracts compounding penalties. We manage this filing as part of every foreign subsidiary engagement.

An Indian subsidiary is treated as a domestic company for income tax purposes and is taxed at the applicable domestic corporate tax rate — currently 22% (plus surcharge and cess) for companies opting for the concessional tax regime under Section 115BAA, or 15% for new manufacturing companies under Section 115BAB.

Set up your Indian subsidiary the right way from day one.

Talk to our team about incorporating an Indian subsidiary — from FDI policy review to FC-GPR filing.