A foreign company can enter India through a wholly owned subsidiary, a limited liability partnership, or a branch, liaison or project office. Dhruv Dua & Co. helps choose the structure, completes incorporation and registrations, reports the investment to the Reserve Bank of India, and then runs accounting, payroll and compliance.
What does India entry for foreign companies cover?
- Choice of structure. Comparison of subsidiary, LLP, branch, liaison and project office on tax, permitted activities, approvals and exit.
- Incorporation and registrations. Company incorporation, PAN, TAN, GST, provident fund, ESI and shops and establishment registrations.
- Bank account and capital. Coordination with the bank for the account and the inward remittance of share capital.
- FDI reporting. Allotment of shares and Form FC-GPR within 30 days of allotment.
- Finance function setup. Chart of accounts aligned to the parent, accounting system, payroll and a monthly reporting calendar.
- Ongoing compliance. Audit, tax, GST, transfer pricing, company law and FEMA filings from one firm.
How does the work run?
- Scoping call on the business plan, people and contracts in India.
- Structure note with tax and regulatory comparison.
- Incorporation or RBI application.
- Registrations, bank account and capital infusion.
- First payroll, first month-end close and first statutory filings.
Who is this for?
- Overseas companies hiring their first employees in India
- Groups executing a contract or project in India
- Companies moving from an employer-of-record arrangement to their own entity
Frequently asked questions
What is the most common way for a foreign company to enter India?
A wholly owned subsidiary, incorporated as a private limited company, is the most common route. It can carry on any business permitted under the foreign investment rules, and in most sectors 100% foreign ownership is allowed without prior government approval.
Does an Indian company need a resident director?
Yes. Under s.149(3) of the Companies Act, 2013 every company must have at least one director who has stayed in India for at least 182 days during the financial year.
Can a liaison office earn income in India?
No. A liaison office can only act as a channel of communication between the head office and parties in India. It cannot carry on any commercial or income-earning activity, and its expenses are met from funds sent by the head office.