Register 100% Foreign Subsidiary in India

A 100% foreign subsidiary is often preferred by foreign companies that want a long-term business presence in India with ownership control over the Indian entity. This structure allows a foreign parent to establish an Indian company that can operate locally, hire employees, enter into Indian contracts, raise invoices, maintain Indian books of account, and build an India-focused business platform.

This route is commonly considered by international businesses expanding into India for technology, consulting, manufacturing, services, outsourcing, distribution, market development, or operational support. It may also be relevant for foreign founders and overseas groups that want an Indian company to support their commercial activity in the Indian market.

Who is this for?

• Foreign companies wanting ownership control of an Indian operating entity
• Overseas groups in technology, services, manufacturing, or distribution
• Foreign founders building an India-focused platform

What it involves

A foreign subsidiary requires careful attention to the business activity and foreign investment route. The foreign parent must consider sectoral conditions, FDI policy, FEMA regulations, shareholding structure, director requirements, capital infusion, valuation, banking documentation, and reporting obligations. The setup process does not end with incorporation, once foreign capital is introduced, the Indian company may have FDI reporting obligations and annual compliance responsibilities.

Eraqus Advisors helps foreign companies understand the full subsidiary setup journey: review of the proposed India activity, discussion of the ownership and control model, preparation of parent company documentation, coordination of incorporation requirements, support around post-incorporation matters, and alignment with FDI reporting and ongoing compliance.

Key considerations

• Sectoral conditions and the applicable FDI route (automatic or approval)
• Shareholding, director requirements, and capital infusion plan
• Valuation and banking documentation for inbound investment
• FDI reporting after capital is introduced
• Annual corporate, tax, accounting, and FEMA compliance

Information generally required

Document and information requirements vary by entity type, business activity, ownership, and jurisdiction. The following is indicative; we confirm the exact requirements for your situation.

• Parent company incorporation and board documents, duly authenticated
• Identity and address proof of proposed directors and authorised signatory
• Registered office address proof in India
• Proposed shareholding pattern and business activity description

Ongoing compliance

A foreign subsidiary can be a strong and scalable India entry route, but it must be planned with care. The Indian entity should be structured to support the foreign parent's commercial objectives while remaining compliant with Indian corporate, tax, FEMA, accounting, and reporting expectations.