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Setting up and running an entity in India
Foreign companies entering India rarely struggle with the incorporation itself. They struggle with the eighteen months afterwards: registrations they didn't know existed, a bank account that takes six weeks, payroll rules that vary by state, FEMA reporting triggered by their own capital infusion, and a parent-company reporting calendar that nobody in India is set up to meet.
We handle the setup and then stay on as the finance and compliance function, so there is no gap between “the company exists†and “the company worksâ€.
Choosing the structure
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Wholly Owned Subsidiary |
Liaison Office |
Branch Office |
Project Office |
LLP |
| Can earn revenue in India |
Yes |
No |
Yes, limited to permitted activities |
Yes, project-specific |
Yes |
| Typical use |
Full operations, hiring, sales |
Market research, representation |
Trading, consultancy for foreign parent |
A single contracted project |
Services, JVs, funds |
| RBI approval |
Generally not required (automatic route, sector permitting) |
Required |
Required |
Conditional |
FDI permitted in some sectors |
| Set-up time |
[[ 2-4 weeks ]] |
[[ 8-12 weeks ]] |
[[ 8-12 weeks ]] |
[[ 6-10 weeks ]] |
[[ 2-4 weeks ]] |
| Ongoing compliance |
Full corporate compliance |
Annual activity certificate, limited filings |
Full, plus AD bank reporting |
Project-linked |
Lighter than a company |
| Tax profile |
Resident company rate |
Not taxable if no income |
Higher branch rate |
Higher branch rate |
Firm rate, no dividend distribution |
What's included
Phase 1 - structuring and incorporation
- Entity structure comparison against your business model, sector caps and exit plan
- Name availability and reservation
- Incorporation, MOA/AOA drafting, DIN and DSC for directors
- Registered office setup [[Confirm whether you offer a registered office / virtual office service]]
- Resident director requirement - guidance and options
Phase 2 - registrations
- PAN and TAN
- GST registration in each state of operation
- Import Export Code, where relevant
- Provident Fund and ESI registration
- professional tax registration, state by state
- Shops & Establishments registration
- Sector-specific licences and approvals as applicable
- STPI / SEZ / MSME / DPIIT registrations where relevant
Phase 3 - banking and capital
- Bank account opening support and KYC documentation for a foreign parent
- Capital infusion routing, FIRC and KYC from the AD bank
- FC-GPR filing on share allotment
- Entity Master registration on the RBI FIRMS portal
Phase 4 - operations
- Chart of accounts aligned to both Indian requirements and the parent's group reporting
- Accounting system setup and opening entries
- Payroll setup, salary structuring and employment documentation
- Transfer pricing policy input for parent-subsidiary transactions
- A twelve-month compliance calendar handed over on day one
Phase 5 - running it
- Ongoing accounting, payroll, tax, GST, ROC and FEMA compliance
- Monthly reporting to the parent in its format and its GAAP
- A single point of contact in your time zone
Who This Is For
Foreign companies establishing a first India presence; groups consolidating several India entities; companies whose India operation has outgrown a distributor or contractor arrangement.
Build a Shared Services Model
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