100% Foreign Subsidiary Setup in India – Inbound Entry Strategy
100% Foreign Subsidiary Setup in India – Inbound Entry Strategy
Unlock the India Opportunity. Gain Local Expertise to Navigate and Accelerate Growth.
India is one of the world’s fastest-growing markets — but its diversity, regulatory complexity, and regional nuances can make entry challenging. A generic, one-size-fits-all approach rarely works. Our India Entry service is an end-to-end solution designed to de-risk your investment, ensure compliance, and translate your global vision into a thriving Indian presence.
What We Deliver:
1. Market & Feasibility Analysis
We provide granular, data-driven insights into India’s consumer behavior, pricing sensitivity, competitive landscape, and industry-specific regulatory environment. This ensures your strategy is backed by evidence, not assumptions.
2. Entity Structuring & Incorporation
We advise on the most suitable legal structure whether a Wholly-Owned Subsidiary, Joint Venture, or Liaison Office and handle incorporation under the Companies Act, 2013 to get you operational quickly and compliantly.
3. Regulatory Approvals (FDI & RBI)
We navigate Foreign Direct Investment (FDI) compliance, liaise with the Reserve Bank of India (RBI) and other government bodies, and secure all necessary approvals so you can focus on strategy, not paperwork.
4, 100% Foreign-Owned Company Setup in India
For NRIs, overseas entrepreneurs, and global businesses, we provide end-to-end assistance in setting up a 100% foreign-owned private limited company in India. Our support covers the entire journey:
Company Incorporation through the SPICe+ portal (DSC, DIN, MoA, AoA, PAN, TAN).
Regulatory Registrations including GST, MSME, Shops & Establishment, and Import-Export Code.
Ongoing Compliance for GST, ROC filings, TDS, income tax, payroll, PF, ESIC, and professional tax.
Accounting & Audit Support with real-time bookkeeping using Tally Prime.
FEMA & RBI Compliance including FC-GPR filings, annual FLA returns, and advisory on capital inflows.
💡 Want the complete breakdown of process, checklist, and fees?
👉 Read our Complete Guide to Setting Up a 100% Foreign Subsidiary in India
5. Location & Partner Selection Advisory
India is not one market it’s many. We help you choose the optimal state and city, leveraging tax benefits, logistics, and talent availability. We also assist in vetting local partners, distributors, or suppliers to set you up for success.
Entering the Indian market felt overwhelming. The regulations seemed to change by state, and we didn't know where to begin. The team provided a complete India Entry blueprint—from market feasibility and entity structuring to navigating RBI approvals. They acted as our team on the ground, turning a complex process into a clear, manageable project. We were operational months ahead of schedule.
We wanted to set up a subsidiary in the US to serve our North American clients. The FEMA and RBI compliance seemed like a maze. The firm handled our entire Overseas Direct Investment (ODI) filing, ensuring we were fully compliant. They didn't just file forms; they structured the investment for optimal tax efficiency under the DTAA, saving us significant tax leakage from day one.
Vijay R Singh & Co. helped the client achieve accurate and timely financial reports, resulting in quicker decision-making and a clearer picture of cash flow and compliance. Their team was professional, responsive, flexible, and personable. They also explained things patiently.
Frequently Asked Questions
India’s regulatory framework and regional differences make it challenging to navigate without local expertise. Having a trusted advisor accelerates entry, reduces risks, and helps avoid costly missteps.
It depends on your goals. A Wholly-Owned Subsidiary offers full control, a Joint Venture can provide market access and shared risk, and a Liaison Office works well for non-commercial representation. We help you decide based on your growth strategy.
Typically 4–8 weeks, depending on regulatory approvals and documentation readiness. We streamline the process to ensure timely incorporation.
While many sectors allow automatic FDI, some industries require government or RBI approval. We identify applicable routes and handle end-to-end compliance.
The decision depends on factors like cost structures, talent pools, infrastructure, and customer proximity. We provide detailed location analysis to help you make an informed choice.
India Entry - Foreign Subsidiary Setup
Inbound entry advisory and execution for foreign companies setting up in India – subsidiary, branch office, liaison office, or project office – with Companies Act, FEMA, RBI, and Income-tax compliance run as one workstream.
By CA Vijay R Singh, FCA
ICAI Membership No. 153926 | FRN 136869W | Practising since 2013
Quick Summary
Foreign companies setting up in India face four entry routes, each with different statutory scope, tax treatment, and operational flexibility. Most foreign GCs and India-bound founders default to the subsidiary route without working through whether a branch or liaison office is a better fit. This service is the full inbound entry work – structure assessment, statutory entity setup, FEMA filings, tax registrations, and the first 12 months of compliance that lock in the structure correctly.
Strategic Fit: Is this right for you?
First Indian Operations
Foreign companies setting up their first Indian presence.
Indian-Origin Founders
Foreign-headquartered Indian-origin founders relocating operations.
GCC / SaaS Subsidiary
Global firms hiring Indian engineering teams.
Foreign Manufacturer
Distribution or assembly operations.
Strategic Stakes
Strategic investors taking control stakes in Indian targets.
Foreign NGO / Academia
Indian presence for non-profit / educational operations.
Final Deliverables Checklist
Everything you receive at the end of the engagement.
- Structure memo - WOS vs branch vs LO vs PO with tax + FEMA implications
- Sectoral FDI analysis (automatic vs approval, sectoral cap)
- Incorporation filings (SPICe+ for WOS, RBI application for LO/BO/PO)
- MoA / AoA customised for foreign-parent structure
- Annual FLA filing by 15 July
- PAN, TAN, GST, PT registration
- Transfer pricing readiness - methodology, Form 3CEB scoping
- First-year compliance calendar
- FC-GPR on first allotment and every subsequent NR allotment
UNDERSTANDING THE FOUR ENTRY ROUTES
WOS (Pvt Ltd Subsidiary)
Standard route. 100% foreign shareholding (where sector allows). Full operational scope. Corporate tax 22% under Sec 115BAA. FDI under automatic route in most sectors.
Branch Office (BO)
Direct extension of foreign parent – not separate legal entity. Permitted activities limited under FEMA. Branch profits taxed at 40% + S&C. RBI approval required.
Liaison Office / Project Office
LO – communication only, no commercial activity, no Indian tax. PO – for specific contract execution. Both require RBI approval. PO treated as PE.
The Engagement Lifecycle
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Transparent Pricing Structure
Statutory & Third-Party Costs – pass-through, NOT our fees
These are paid directly to government departments, certifying authorities, and banks. They are not VRS professional fees.
- SPICe+ government filing fees: Rs 6,000-Rs 15,000 (capital-dependent)
- DSC for foreign directors: ~Rs 1,200-Rs 2,000 each (valid 2 years)
- RBI approval for LO/BO/PO: nil government fee (free)
- FC-GPR / FLA filing fees: nil (free, only AD bank service charges)
- Apostille + consulate attestation: borne by parent in foreign jurisdiction
Professional fees
Our engagement fee covers end-to-end filing, structuring advisory, and post-incorporation handover – including structuring queries during the first 12 months of operation. Quoted per engagement after the scoping call. Complexity varies with foreign holdings, subsidiary structures, statutory complexity, and customised provisions.
Quoted per Engagement
Complexity varies with foreign holdings, subsidiary structures, and customized AoA clauses.
Frequently Asked Questions
Subsidiary or LO - which one for a SaaS company entering India?
Almost always subsidiary. An LO cannot carry out commercial activity – cannot bill Indian customers or carry SaaS revenue. The only LO use case for SaaS is pre-revenue market study.
How long does the entire setup take?
WOS subsidiary: 8-12 weeks from scoping to first invoice. LO / BO: 12-16 weeks (RBI adds 4-8 weeks). PO: 6-10 weeks once underlying contract is in place.
Can the foreign parent be the only shareholder?
Yes – 100% FDI is permitted under automatic route in most sectors. For WOS Pvt Ltd, two shareholders required by Companies Act – parent typically holds 99.99% with a token holder, or two parent entities.
Do we need a resident director?
Yes. Sec 149(3) Companies Act 2013 requires at least one director resident in India (182 days in previous FY).
What is the difference between an LO and BO for foreign tax purposes?
LO does not earn revenue – no Indian tax. BO is treated as PE – branch profits taxed at 40% + S&C. DTAA between India and parent jurisdiction usually allows foreign credit.
Can we convert an LO to a subsidiary later?
An LO cannot directly convert – must be wound up and a separate subsidiary incorporated. We sequence closure and incorporation in parallel to avoid commercial gaps.