A foreign company can enter India through a wholly owned subsidiary, a joint venture company, a branch, liaison or project office, or simply by contracting with Indian parties. Most sectors allow 100 percent foreign investment under the automatic route, but some need government approval, and investors from countries sharing a land border with India need approval under Press Note 3 (2020). Investment must be reported to the RBI, and the entity must comply with company, tax, GST and labour law from day one.
Choosing how to enter India
| Option | Suits | Key points |
|---|---|---|
| Subsidiary company | Businesses that will earn revenue in India | Separate Indian company; FDI rules and reporting; at least one director resident in India |
| Liaison office | Market research and representation only | RBI approval through an authorised dealer bank; cannot earn income in India |
| Branch office | Permitted activities such as export, import and professional services | RBI approval; taxed as a foreign company |
| Project office | A specific contract in India | Tied to the life of the project |
| Contracts only | Distribution, supply or outsourcing without a local entity | Watch for permanent establishment risk and enforceability |
Individual founders, including NRIs and foreign nationals, can also set up a private limited company with foreign shareholding. See company setup for foreigners.
FDI and FEMA in plain terms
Foreign investment is governed by the Foreign Exchange Management Act, 1999, the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and the consolidated FDI Policy. The practical questions are: is the sector open, is the route automatic or approval-based, is the price at or above fair value, and has each step been reported on time. Shares must be issued within the prescribed period after money is received, and the allotment reported on the FIRMS portal. Every Indian company with foreign investment files an annual return on foreign liabilities and assets. Late reporting can be regularised, but it costs time and money. See FDI and FEMA compliance.
Running the business once it is set up
- Contracts: governing law, the seat of arbitration and stamp duty decide whether your contract can be enforced in India.
- Brand: India is first-to-file in practice for trademarks, so file before launch. See trademark protection.
- Tax and GST: registration, invoicing and the treatment of cross-border services need to be set up correctly. See GST for foreign businesses.
- People: employment contracts, provident fund, ESI, the new labour codes and the POSH Act apply as soon as you hire. See employment law.
- Investing in others: minority investments in Indian startups need diligence, a shareholders agreement and FEMA filings. See investing in Indian startups.
Documents and timing for foreign promoters
The slowest part of setting up in India is usually not the Indian filing but the paperwork from abroad. The overseas parent will need its certificate of incorporation, constitutional documents and a board resolution, and foreign directors and individual shareholders will need passports and proof of address. All of these must be notarised and apostilled, or attested by the Indian mission where the apostille does not apply, and documents in another language need a certified translation. Directors need digital signature certificates and director identification numbers before incorporation. Once the company is registered, opening the bank account, receiving the share capital, issuing shares and reporting the investment to the RBI follow in sequence, each with its own time limit. We send a single checklist at the start so that everything abroad can be signed in one round.
Which service do you need?
| Your situation | Service |
|---|---|
| You want to incorporate an Indian company as a foreign founder or NRI | Company Setup for Foreigners |
| Your overseas company wants an Indian subsidiary | Indian Subsidiary Setup |
| You need a liaison, branch or project office | Branch & Liaison Office |
| You must report foreign investment or fix a FEMA lapse | FDI & FEMA Compliance |
| You want to protect your brand in India | Trademark Protection in India |
| You need a distribution, supply, services or JV agreement | Commercial Contracts |
| You are hiring employees in India | Employment Law for Foreign Employers |
| You sell services or goods to Indian customers and need GST advice | GST for Foreign Businesses |
| You are investing in an Indian startup | Investing in Indian Startups |
All doing business in india services
Company Setup for Foreigners
Incorporating an Indian company with foreign directors and shareholders.
Learn moreIndian Subsidiary Setup
Wholly owned subsidiaries for overseas parent companies.
Learn moreBranch & Liaison Office
RBI-approved branch, liaison and project offices.
Learn moreFDI & FEMA Compliance
Entry routes, pricing, FC-GPR, FLA returns and compounding.
Learn moreTrademark Protection in India
Protecting a foreign brand in India by national filing or the Madrid route.
Learn moreCommercial Contracts
Distribution, supply, services, JV and shareholder agreements under Indian law.
Learn moreEmployment Law for Foreign Employers
Hiring in India: contracts, labour codes, PF, ESI, terminations and policies.
Learn moreGST for Foreign Businesses
Non-resident taxable person registration, OIDAR and export of services.
Learn moreInvesting in Indian Startups
Due diligence, term sheets, shareholder agreements and FEMA reporting for investors.
Learn moreLegal Advisory for NRI Investors
Investing in Indian companies, LLPs and family businesses as an NRI or OCI, within FEMA.
Learn moreFrequently asked questions
Can a foreigner own 100 percent of an Indian company?
In most sectors, yes, under the automatic route. Some sectors have caps or need government approval, and investors from countries sharing a land border with India need approval in every sector.
Does an Indian company need an Indian director?
Every Indian company must have at least one director who is resident in India as defined in the Companies Act, 2013. The other directors can be foreign nationals.
How long does it take to set up a subsidiary?
Usually a few weeks once the overseas parent's documents are notarised and apostilled or attested. Opening the bank account and bringing in capital follow.
Is a liaison office cheaper than a subsidiary?
It can be simpler to run, but it cannot earn income in India. If you plan to sell in India, a subsidiary is usually the better choice.
Do foreign documents have to be apostilled?
Generally yes, or attested by the Indian mission where the country is not an apostille partner of India. The registrar and banks rely on these formalities.
Can you be our ongoing compliance team in India?
Yes. Our company secretaries, chartered accountants and advocates can handle routine filings, board records, tax and FEMA reporting.