Corpzo Helps You Establish a Foreign Subsidiary in India – End-to-End Support for Global Businesses 

Introduction India is one of the most dynamic and rapidly growing economies in the world, offering vast opportunities for international businesses looking to expand their footprint. From a large consumer base to a tech-savvy workforce and a favorable business environment, India presents an attractive destination for foreign companies aiming to establish a presence in South Asia.

 One of the most strategic ways to enter the Indian market is by setting up a foreign subsidiary company. At Corpzo, we specialize in providing end-to-end services for foreign companies to incorporate and manage their subsidiaries in India efficiently, legally, and in full compliance with Indian regulatory requirements.

Why Set Up a Foreign Subsidiary in India?

 A foreign subsidiary is a company incorporated in India that is majority or wholly owned by a foreign parent company. This structure offers numerous advantages:

✅ Full Legal Presence in India subsidiary company has a separate legal identity from its parent, allowing it to conduct operations, own assets, hire employees, and enter into contracts in its name.

✅ 100% Foreign Ownership

In most sectors, India allows 100% Foreign Direct Investment (FDI) under the automatic route, meaning you do not need prior government approval.

✅ Tax and Legal Advantages Subsidiaries are taxed as Indian companies and can take advantage of Double Taxation Avoidance Agreements (DTAA) and government schemes like Startup India and Make in India.

✅ Market Access and Local Credibility Having a local subsidiary helps build trust among Indian partners, clients, and government bodies, while ensuring complete operational control over your business.

Common Sectors for Foreign Subsidiaries

• Information Technology and Software Services

• Manufacturing and Engineering

• Pharmaceuticals and Healthcare

• Financial and Legal Services

• E-commerce and Logistics

• Renewable Energy

• Consulting and R&D

Corpzo has experience working with businesses across these industries and more.

Types of Foreign Companies in India

India allows multiple business structures for foreign companies, but the most preferred and flexible model is the Private Limited Company (subsidiary model).

 Here are the available options:

  Type Description Ownership Limit Wholly Owned Subsidiary (WOS)

100% shares held by a foreign entity

100% FDI allowed under automatic route Joint Venture Partnership with Indian entities Shared ownership Liaison Office Limited to communication purposes No revenue-generating activities

Branch Office

Can conduct business but with restrictions Requires RBI approval Project Office Set up for specific projects RBI approval needed

Among these, a Private Limited Subsidiary is the most efficient structure for operating as a full-fledged business in India.

Documents Required for Setting Up a Foreign Subsidiary in India set up a foreign subsidiary, the following documents are generally required:

 From the Parent Company:

• Certificate of Incorporation of the parent company (attested by the Indian Embassy/Notary)

• Board resolution approving the incorporation of the Indian entity

• Memorandum and Articles of Association of the parent company

• KYC documents of authorized signatories

From Directors and Shareholders:

• Passport (attested and notarized)

• Address proof (Utility bill or bank statement, not older than 2 months)

• Digital Signature Certificate (DSC) of Indian directors

• Director Identification Number (DIN)

For the Registered Office in India:

• Rent agreement or property ownership document

• No Objection Certificate (NOC) from the property owner

• Utility bill (electricity, water, etc.)

Corpzo’s Step-by-Step Process for Foreign Subsidiary Setup Corpzo takes care of the complete lifecycle of your foreign subsidiary — from incorporation to post-registration compliance.

Step 1: Pre-Incorporation Advisory begins with a consultation to understand your business goals, preferred structure, FDI norms for your sector, and tax considerations.

Deliverables:

• Legal structure recommendation

• Sector-specific FDI compliance

• Tax implications briefing

Step 2: Documentation & Legal Setup Collect all required documents from both the parent company and proposed directors and prepare the incorporation application.

Includes:

• Drafting MOA & AOA (with customized clauses)

• Legal translations and notarizations (if needed)

• Foreign documents attestation as per FEMA guidelines

Step 3: Incorporation Filing with MCA. Using the SPICe+ form, we file your application for incorporation with the Ministry of Corporate Affairs (MCA), including PAN, TAN, and company name reservation.

 Once approved, you receive:

• Certificate of Incorporation

• Corporate Identification Number (CIN)

• PAN & TAN

Step 4: Post-Incorporation Registrations assist with all essential registrations and setup services:

• GST Registration

• Import Export Code (IEC)

• Bank Account Opening

• Professional Tax, Shops & Establishment Registration (if applicable)

• ESIC and EPFO Registration (for hiring employees)

Step 5: Ongoing Regulatory Compliance. Setting up the company is just the beginning. Corpzo provides compliance management, including:

• Filing of Form FC-GPR (Foreign Investment reporting to RBI)

• Annual returns and financial statements filing

• Board meetings and resolutions

• Statutory audits and tax filings

• FEMA and FDI compliance support

Why Choose Corpzo for Foreign Subsidiary Services in India?

 Establishing a foreign entity in a new country can be challenging. With Corpzo, you gain a strategic partner with legal, financial, and compliance expertise.

✅ One-Stop Solution

From incorporation to compliance, taxation, HR, and advisory — all services under one roof.

✅ Sector-Specific Expertise Our team understands the industry-specific regulatory environment in India.

✅ Global Clientele We’ve helped companies from the USA, UK, Singapore, Germany, UAE, and more expand into India seamlessly.

✅ Transparent Pricing, hidden costs. You get complete clarity on timelines, documentation, and costs.

✅ Expert Team Our panel of Chartered Accountants, Company Secretaries, and Corporate Lawyers ensures error-free, audit-ready work.

FAQs – Foreign Subsidiary Setup in India 

Q1: Can a foreign company hold 100% shares in an Indian company?
Yes, most sectors allow 100% FDI under the automatic route. Some sectors still require government approval.

Q2: How long does it take to register a foreign subsidiary in India?
Typically, the process takes 10 to 15 working days, depending on documentation and government processing.

Q3: Is it mandatory to have an Indian director?
Yes, at least one director must be an Indian resident, as per the Companies Act, 2013.

Q4: What are the tax implications?
The subsidiary is taxed as a domestic Indian company, currently at a 22% corporate tax rate (subject to certain conditions).

Q5: What is FC-GPR filing?
Form FC-GPR is filed with the Reserve Bank of India (RBI) to report foreign shareholding in an Indian company.

Final Thoughts

India’s emerging economy and favorable business policies offer immense potential for foreign companies. However, navigating legal, regulatory, and compliance challenges is essential for long-term success.

 At Corpzo, we don't just register your company — we build your compliant and strategic entry into the Indian market. Whether you're expanding your global operations or starting a new venture in India, we provide the expertise, speed, and support you need to get it right.

 Ready to Expand into India?

 Let Corpzo be your trusted partner in setting up your foreign subsidiary in India. Visit www.corpzo.com to schedule a free consultation with our foreign business experts today!