#foreign subsidiary

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Are you expanding your business? A foreign subsidiary is the right choice for global expansion. Learn more about foreign subsidiaries with t

Looking to expand your business globally? Setting up a foreign subsidiary could be an ideal option for you! It gives your brand recognition worldwide. Wondering how to begin? Join hands with Business Setup Worldwide and set up your foreign subsidiary at the location of your choice.

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How Foreign Companies & NRIs Can Set Up 100% Owned Subsidiaries in India (RBI + Tax Steps Included)

🏢 Why 100% Foreign Subsidiaries Are Popular

India now allows 100% Foreign Direct Investment (FDI) in most sectors under the automatic route. This means foreign companies and individuals can set up private limited companies in India without needing prior government approval.

A 100% foreign-owned subsidiary is registered as a Private Limited Company under the Companies Act, 2013. It gives you:

Full foreign ownership (no local shareholder required)

The ability to hire staff, issue invoices, and operate like any Indian business

Legal recognition with corporate tax benefits

Rights to repatriate profits legally

Eligibility to register for GST, import/export, etc.

This structure works well for consulting, tech, SaaS, manufacturing, and trading businesses planning long-term operations in India.

🧾 Incorporation & Compliance Process (Explained Simply)

Setting up a foreign subsidiary isn’t just about getting a Certificate of Incorporation you also need to comply with FEMA (Foreign Exchange Management Act) and RBI filings.

Here’s how it works:

Company Incorporation: File name approval, DSCs, and incorporation forms with MCA

Resident Director: At least one director must be a resident Indian

Capital Infusion: Foreign shareholder transfers capital to the Indian bank account

FCGPR Filing: Report the foreign investment to RBI within 30 days of share allotment

FLA Filing: File the annual return to RBI disclosing foreign liabilities and assets

Other Steps: Appoint auditor, issue share certificates, register under GST (if applicable), maintain statutory books

These are non-negotiable steps. Missing any of them may attract RBI penalties or compliance notices.

💸 How Long Does It Take & What Does It Cost?

If the documentation is complete and you’re working with a professional, the entire process takes around 20–25 working days. That includes company incorporation, bank account setup, share issuance, and RBI filings.

The total cost for a full setup with legal drafting, CA certification, MCA and RBI filings, and advisory comes to approximately ₹1.47 lakh a fair investment if you're serious about entering India the right way.

⚠️ Common Mistakes to Avoid

Missing the FCGPR deadline after capital transfer

Using an incomplete MOA/AOA (which RBI can reject later)

Not issuing share certificates within 60 days

Forgetting transfer pricing rules if billing the foreign parent

Not filing the FLA return, leading to penalties

These aren't theoretical issues I’ve seen clients face RBI scrutiny for small oversights. So the goal is to set it up clean, legal, and future-proof from day one.

📘 Want the Full Step-by-Step Guide?

If you want to go deeper, I’ve written a detailed, no-pitch guide explaining the entire foreign subsidiary setup in India from incorporation to compliance.

👉 Read the Complete Guide to Setting Up a 100% Foreign Subsidiary in India

It covers timelines, cost breakdown, post-incorporation filings, and compliance checklists in one place.

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6 Simple Steps of Foreign Subsidiary Company Registration in India

When you are planning to set up an office in India, there are certain procedures that need to be followed. It can be confusing for business

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Incorporating a Subsidiary of a Foreign Company in India: A Step-by-Step Guide

As more and more foreign companies look to enter the Indian market, the incorporation of a subsidiary company in India is becoming a popular

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New Company Registration

New Company Registration is the basic step that will define the structure of a business and make it an entity that enjoys legal acceptability.

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Online Business Registration Process

Registering a company in India is a tough and time consuming task if you don't know how to do this. Here is a complete guide about company registration process which will suggest you what steps to take and what documents to prepare.

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A Foreign Subsidiary is that organization whose Parent Company is incorporated outside India. This Foreign Subsidiary has been set-up in India and needs to work as indicated by the laws material in India.

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India Entry Services

by CA Swati Shah | Rustle Business Consulting

Dear Global Investors and Entrepreneurs. Want to Start A New Business? India Might Be a Good Choice 

 Doing business in India has several advantages because of its development-friendly reforms. The ever-growing Indian start-up ecosystem has been garnering attraction from both local and foreign stakeholders. Due to factors like a large customer base, rapid growth in economy, comparatively inexpensive labour force countries like India, china, Brazil etc. remain the most obvious choice of Multi-National companies to establish business in these countries. While several foreign investors from the US, Japan and China are pouring in money in the Indian start-up ecosystem, several founders are also looking to start businesses in India.

Top Reasons to start Business in India:

1. Ease of Doing Business The Government of India has been playing an important role in providing great deal of help to entrepreneurs by easing the mode of starting business – through business-friendly laws, reducing the procedures for registration, and liberalizing the market. Setting up business in India has become very quick, and easy.

2. Cost-Effectiveness When it comes to cost of basic amenities like labour, food, electricity and infrastructure, it is much more affordable in India when compared to developed countries. Skilled low-cost labor is also one of the economic reasons

3. Talent, and Employability There is no paucity of talent in India. For many years the youth of India have been chasing employment and have been in the search of a 9-to-5 job profile. Now, the tables have turned because they have finally got the choice of being hired or becoming the hirer

4. Big Market, and ample demand People in India have variety in everything. Therefore, demand to purchase new amenities never goes down. Plus the Population of India is enough to keep demand high.

5. Startup Ecosystem India is a hub for certain kinds of startups, including technology, e-commerce, and financial services. The fact that the Indian market is open to accepting new business ideas makes it easier for new businesses to enter it

6. Business-friendly laws In the recent years, several important bills that are beneficial for most industrial sectors have been passed in the Indian Parliament. Plus, the procedure to set up business have been very much simplified.

7. Business Sustainable Environment Economy is at growing stage which will be very favorable for a business to maintain its stability and growth. In the upcoming years, India will be the host for some of the major infrastructural plans which will help in creating new business environment for different sectors.

Services we provide to Set up Business in India:

Business set up

Company Incorporation

Company Law compliances

Tax advisory

Setting of foreign subsidiary, branch

Statutory Licenses & Regulatory Approvals

Setting up of Liason office

Statutory Compliances post business set up

India market research

Private equity & VC funding, Debt syndication

HR advisory services

Services for NRIs

Due diligence for target acquisitions

Tax compliances

Direct Taxes - Income Tax

Indirect Tax - GST, Customs

NRI Taxation -tax on sale of property of shares in India

Accounts outsourcing, Data entry services

For further information Feel free to call us on [phone] or Send us an Email at [email protected]