A German company can own 100 per cent of an Indian private limited company under the automatic route in most sectors. The parent passes a board resolution, nominates directors and a subscriber representative, and the German corporate documents are notarised and attested by the Indian mission because the apostille does not apply. Incorporation is filed online with the Registrar of Companies, and the capital arrives through banking channels with FEMA reporting afterwards.
- Document route
- German notary, pre-certification, then Indian mission attestation
- 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 Germany: how it works
Preparation in Germany decides the speed of the whole exercise. We send the parent a short list: a resolution of the Geschäftsführung or Vorstand approving the subsidiary, a current Handelsregister extract, passport and address proof for each proposed director, and the authorisation for the person who will sign the memorandum on behalf of the parent. These papers are notarised and then taken through pre-certification and Indian mission attestation. While that runs, we reserve the name, draft the articles and line up the resident director, because the Companies Act requires at least one director who stayed in India for 182 days or more during the financial year.
Once the attested documents reach India, we file the incorporation forms, obtain the certificate of incorporation, PAN and TAN, and open the bank account. The parent then remits the share capital from Germany, and the subsidiary must issue shares and file Form FC-GPR on the RBI FIRMS portal within the deadline. German groups often underestimate the annual compliance load: statutory audit, board meetings, transfer pricing documentation for intra-group charges and annual RBI filings. We set up a compliance calendar from day one so the German finance team knows what is due and when.
What clients in Germany should know
- Transfer pricing matters early: management fees, licences for German technology and component supplies from the parent are all international transactions that Indian tax officers review closely.
- India's tax treaty with Germany governs dividends paid from the subsidiary to the German parent, and claiming the treaty rate requires the parent's German residence certificate and Form 10F.
- Choose German or Indian law carefully for the shareholder documents: the articles of an Indian company must comply with the Companies Act 2013 whatever the parent's internal rules say.
Step by step from Germany
Video consultation
A call at a time that suits Germany, after we have read your documents.
Documents signed in Germany
German notary, pre-certification, then Indian mission attestation
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 Germany where needed.
The full guide
This page covers what changes when you are in Germany. 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 Germany and the Doing Business in India practice area.
Questions from clients in Germany
Can the managing director in Germany also be a director of the Indian company?
Yes, a German resident can be a director after obtaining a Director Identification Number and digital signature. You still need at least one resident director who meets the 182-day test.
Do we need a second shareholder?
A private company needs at least two members. German groups usually hold one share through a second group company or a nominee arrangement while the parent holds the rest.
Is a liaison office cheaper than a subsidiary for a German firm?
It can be lighter to run, but a liaison office cannot earn revenue in India. If you plan to sell, manufacture or invoice, a subsidiary is usually the right structure.