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For a Wholly Owned Subsidiary (Private Limited Company), the typical timeline from document collection to Certificate of Incorporation is 4 to 6 weeks, assuming all documents are complete and properly apostilled. Post-incorporation steps — including FEMA filing, GST registration, bank account opening and payroll setup — take an additional 2 to 4 weeks. Most foreign companies are fully operational in India within 8 weeks. Branch Offices and Liaison Offices require prior RBI approval, which can add 4 to 8 additional weeks to the timeline.

A Wholly Owned Subsidiary (WOS) is a separate Indian legal entity — incorporated as a Private Limited Company under the Companies Act 2013. It has its own CIN, PAN and legal identity, and can carry out all permitted business activities in India. It is taxed as a domestic Indian company at 22% corporate tax rate. A Branch Office is an extension of the foreign parent — not a separate entity. It requires prior RBI approval, can only conduct limited activities (no manufacturing), is taxed as a foreign company at 40%, and the parent company remains liable for its obligations. For most businesses, a WOS is the preferred structure due to limited liability, lower tax rates and greater operational flexibility.

No. Foreign directors are not required to be physically present in India for the incorporation process. However, their documents — including passport, overseas address proof and photographs — must be notarised and apostilled in their home country before submission. A Digital Signature Certificate (DSC) must be obtained for each director before MCA filings can proceed. Our team provides a complete document checklist and guides foreign directors through the apostille and DSC process remotely. The only requirement is that at least one director must be an Indian resident (stayed in India for 182+ days in the previous calendar year).

Once the foreign parent remits capital into the Indian subsidiary, Form FC-GPR must be filed with the RBI through the FIRMS portal within 30 days of share allotment — this is mandatory and non-negotiable. Subsequently, an Annual Return on Foreign Liabilities and Assets (FLA) must be filed with the RBI every year by July 15th. Any subsequent share transfers between residents and non-residents require Form FC-TRS filing. Additionally, if the Indian entity has outbound investments or provides loans to overseas entities, separate ODI filings are required. Our team manages all FEMA compliance on an ongoing basis.

All transactions between the Indian subsidiary and its foreign parent — including management fees, royalties, software licences, IT services, loans and goods — are considered "international transactions" under Indian tax law and must be priced at arm's length. If the aggregate value of such transactions exceeds ₹1 crore in a financial year, a Transfer Pricing Audit (Form 3CEB) certified by a Chartered Accountant is mandatory. Additionally, if the group's consolidated revenue exceeds INR 500 crore (approximately USD 60 million), Master File and Country-by-Country Reporting (CBCR) obligations apply. Improper transfer pricing can result in significant tax adjustments and penalties. Our team prepares robust transfer pricing documentation to defend the pricing positions adopted.

Yes. India allows free repatriation of dividends and profits to foreign parent companies, subject to applicable withholding tax. Dividends paid by an Indian company to a foreign parent are subject to a withholding tax of 20% (plus surcharge and cess) under the domestic law. However, if a Double Taxation Avoidance Agreement (DTAA) exists between India and the parent's country, the withholding tax rate may be significantly reduced — typically to 5%, 10% or 15% depending on the treaty. India has DTAAs with 90+ countries including the US, UK, Germany, Singapore, Japan and the UAE. Our team advises on optimal remittance structures and prepares Form 15CB for all outward remittances.

A foreign-owned Indian Private Limited Company must fulfil the following annual compliances: Statutory audit of financial statements by an Indian CA firm; filing of Annual Return (MGT-7) and Financial Statements (AOC-4) with the MCA; Income Tax Return filing; GST annual return (GSTR-9); FLA return with RBI (by July 15); Transfer pricing documentation and Form 3CEB (if applicable); Board meetings (minimum 4 per year) and Annual General Meeting; TDS returns filed quarterly; and payroll compliances including PF, ESI and professional tax. Non-compliance attracts penalties and can impact the company's good standing with regulators. Our team manages all of these on a calendar-driven basis so nothing is missed.