Indian Subsidiary Company Registration | Savlana Init

Company Registration · Indian Subsidiary

Indian Subsidiary — Expand into India. Operate with Confidence.

Incorporate a wholly owned or majority-owned Indian Subsidiary with CA-assisted SPICe+ filing, FDI compliance, FEMA reporting, and complete post-incorporation MCA and RBI compliance.

An Indian Subsidiary is a Private Limited Company incorporated in India under the Companies Act, 2013, where the majority or entire shareholding is held by a foreign parent company. It is a separate legal entity from the foreign parent, enjoying limited liability, perpetual succession, and the ability to own assets, enter contracts, and employ staff in India. India permits 100% FDI under the automatic route in most sectors, making subsidiary incorporation the preferred entry strategy for foreign businesses.

The incorporation process follows the same SPICe+ route as a domestic company, with additional requirements for foreign shareholders — including notarised and apostilled KYC documents, a board resolution from the foreign parent authorising investment, and proof of the parent company's incorporation. After incorporation, the Indian subsidiary must file Form FC-GPR with the RBI within 30 days of receiving foreign funds and allotting shares. Transfer pricing regulations under the Income Tax Act apply to transactions between the subsidiary and its foreign parent.

We assist foreign companies at every stage — assessing FDI eligibility, incorporating the Indian subsidiary, completing RBI and FEMA filings, and managing ongoing MCA annual compliance, transfer pricing documentation, and income tax returns. Our team coordinates between Indian company law and FEMA requirements so nothing falls through the cracks.

Our Indian Subsidiary Services

FDI Route Assessment

Review of your business sector against the FDI Policy to confirm whether automatic route or government approval route applies before incorporation.

Foreign Director KYC & DSC

Coordination of notarised and apostilled identity documents for foreign directors and obtaining DSCs for all proposed directors.

SPICe+ Incorporation Filing

End-to-end SPICe+ filing including name reservation, MOA/AOA tailored for a foreign-owned entity, and DIN allotment.

FC-GPR Filing with RBI

Filing of Form FC-GPR with the RBI through the Authorized Dealer Bank within 30 days of share allotment against FDI received.

Annual FC-TRS & FLA Reporting

Preparation and filing of Form FC-TRS for transfer of shares and Annual Return on Foreign Liabilities and Assets (FLA) with the RBI.

Transfer Pricing Documentation

Preparation of Transfer Pricing documentation (Form 3CEB) for international transactions between the Indian subsidiary and its foreign parent.

MCA Annual Compliance

Filing of MGT-7 (annual return) and AOC-4 (financial statements) with the MCA along with statutory audit coordination.

Dividend Repatriation Advisory

Advisory on dividend declaration, applicable TDS rates, DTAA benefits, and Tax Residency Certificate requirements for profit repatriation.

Our Process

FDI & Sector Assessment

We review the business sector, applicable FDI route, and shareholding structure to confirm eligibility and plan the incorporation accordingly.

Foreign KYC & DSC Coordination

We guide the foreign parent and directors through the notarisation and apostille process and obtain DSCs for all proposed directors.

SPICe+ Filing & Incorporation

MOA and AOA are drafted, SPICe+ is filed, and the Certificate of Incorporation with CIN, PAN, and TAN is obtained.

Capital Infusion & FC-GPR Filing

Foreign funds are received in the Indian bank account and Form FC-GPR is filed with the RBI within the prescribed 30-day period.

Ongoing Compliance Setup

Transfer pricing documentation, MCA annual filings, FLA returns, and income tax compliance are set up and managed on a continuing basis.

Why It Matters

✓Separate legal entity — limited liability for the foreign parent

✓100% FDI permitted under automatic route in most sectors

✓Full ownership of Indian assets, IP, and contracts

✓Profits repatriable as dividend after applicable TDS

✓DTAA benefits reduce withholding tax on dividends to 10–15%

✓Transfer pricing documentation prepared and filed correctly

✓FC-GPR and FLA RBI filings handled on time

✓Complete MCA and income tax annual compliance managed

Frequently Asked Questions

Yes. In most sectors, 100% FDI is permitted under the automatic route, meaning no prior government approval is required. Sectors where FDI is restricted or requires government approval include defence, broadcasting, insurance, and certain food processing activities. We assess the applicable FDI route for your specific sector before incorporation.

An Indian subsidiary is a separate legal entity incorporated under the Companies Act, 2013 with its own CIN and limited liability. A branch office is an extension of the foreign company, not a separate entity, and the foreign company is directly liable for all branch activities. Subsidiaries offer stronger liability protection and are suitable for broader business operations.

After receiving foreign investment, the Indian subsidiary must file Form FC-GPR (Foreign Currency — Gross Provisional Return) with the RBI through the Authorized Dealer Bank within 30 days of allotment of shares. Annual returns in Form FC-TRS and Form FLA (Foreign Liabilities and Assets) must also be filed as applicable.

A minimum of 2 directors and 2 shareholders are required. At least one director must be a resident of India. The foreign parent company can be the majority or sole shareholder. All foreign directors must provide notarised and apostilled KYC documents. There is no minimum paid-up capital requirement under the Companies Act, though FEMA norms may require adequate capitalisation.

An Indian subsidiary is taxed as a domestic company under the Income Tax Act. The base corporate tax rate is 22% under the new concessional tax regime (Section 115BAA), plus 10% surcharge and 4% health and education cess — an effective rate of approximately 25.17%. Dividend distribution to the foreign parent is subject to TDS at 20% (or treaty rate if a DTAA applies).

Profits of an Indian subsidiary can be repatriated to the foreign parent as dividends after payment of corporate tax. Dividend is subject to TDS at 20% under domestic law, reduced to the applicable DTAA rate (typically 10–15%) on submission of a Tax Residency Certificate. The subsidiary must also comply with any applicable transfer pricing requirements for transactions with the parent.

Ready to incorporate your Indian Subsidiary?

We manage the complete process — FDI assessment, SPICe+ filing, RBI FC-GPR, transfer pricing, and ongoing MCA compliance — so your Indian operations start right and stay compliant.