A French company can set up a 100 per cent owned Indian private limited company under the automatic route in most sectors. The French parent approves the investment, apostilles its board resolution and Kbis extract, and appoints directors, at least one of whom must be resident in India. Incorporation is filed online with the Registrar of Companies, capital is remitted from France, and the share issue is reported to the RBI on the FIRMS portal.
- Document route
- Notaire or mairie certification, then apostille from the cour d'appel
- Time difference
- India is 3.5 hours (summer) to 4.5 hours (winter) ahead
- Vehicle
- Private limited company
- Approval
- Automatic route in most sectors
Indian Subsidiary Setup from France: how it works
On the French side we need a resolution of the parent's board or président approving the subsidiary, a recent Kbis extract, the statuts if the Indian bank asks for them, and passports and proof of address for the proposed directors. These are signed or certified in France and apostilled at the cour d'appel. Bilingual French and English drafts avoid a separate translation in India. While the apostille is being obtained, we reserve the company name, draft the memorandum and articles, apply for director identification numbers and digital signatures and identify a resident director.
After incorporation the subsidiary obtains its PAN and TAN, opens a bank account and receives share capital from the French parent. Shares must be allotted and Form FC-GPR filed with the RBI within the deadline. French groups should plan Indian transfer pricing from the start, since cost recharges, licence fees and secondments from France are reviewed closely in India, and French expatriates working in India raise payroll, visa and permanent establishment questions. We provide a compliance calendar so the French finance team knows the Indian deadlines.
What clients in France should know
- Dividends from the Indian subsidiary to France are taxed under India's tax treaty with France, subject to the 2023 Supreme Court ruling on most favoured nation clauses, so check the current position before modelling returns.
- French employees seconded to India may create a taxable presence for the parent if they work under its control; structure secondments with written agreements and Indian payroll where needed.
- A French SAS can be the sole shareholder in substance, but an Indian private company still needs two members, so a second group entity usually holds one share.
Step by step from France
Video consultation
A call at a time that suits France, after we have read your documents.
Documents signed in France
Notaire or mairie certification, then apostille from the cour d'appel
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in France where needed.
The full guide
This page covers what changes when you are in France. For the law, the documents and the step-by-step procedure, read our main page on Indian Subsidiary Setup, or see all services for clients in France and the Doing Business in India practice area.
Questions from clients in France
How long does incorporation take for a French parent?
The Indian filing itself is quick once documents are in order. In practice, collecting and apostilling French documents takes the most time, so start those first.
Can our French directors sign Indian forms electronically?
Yes, after they obtain Indian digital signature certificates, which can be issued to foreign nationals on the basis of apostilled identity documents.
Do we need government approval as a French company?
Not in most sectors. Approval is needed only for sectors under the government route or above sectoral caps, such as certain defence or broadcasting activities.