INCORPORATION
A wholly owned subsidiary is a company whose entire share capital is held by its parent. This guide explains the meaning with examples, the Companies Act and FDI rules, and how a foreign company sets one up and runs it in India.
Incorporation
Written by CA Nandini, Krystal7 Consultants. Last updated 14 November 2026.
A wholly owned subsidiary is a company whose entire share capital is held by one parent company, directly or through its nominees. In India it is usually a Private Limited company. Section 2(87) of the Companies Act, 2013 defines a subsidiary, and the Act has no separate definition of a wholly owned one. A foreign company can own 100 percent in most sectors without prior approval. The company still needs two shareholders, two directors and one director who stays in India for 182 days.
This page explains what a wholly owned subsidiary means, with real examples, as the law stands on 14 Nov 2026. It covers the Companies Act rules, foreign ownership, shareholders, directors, setup, capital, tax and yearly compliance. It then compares a subsidiary with a joint venture, a branch and a liaison office. It closes with a worked example, common mistakes, a checklist and FAQs.
A wholly owned subsidiary (WOS) is a company in which one parent holds all the shares. The parent is the holding company. No outside investor owns any part of it.
The Companies Act, 2013 defines a subsidiary company in section 2(87). A company is a subsidiary when another company controls the composition of its board. It is also a subsidiary when that company controls more than one half of its total voting power. Section 2(46) defines the holding company. Since the Companies (Amendment) Act, 2017, a holding company includes any body corporate, so a foreign parent qualifies.
The Act uses the words "wholly owned subsidiary" in sections 185, 186, 188 and 233. It does not define them. In practice the term means a subsidiary whose whole share capital sits with the holding company and its nominees. Tax law uses the same idea. Section 70(1)(c) of the Income Tax Act, 2025 keeps a transfer of a capital asset to a wholly owned Indian subsidiary outside capital gains.
| Term | Test | Where it comes from |
|---|---|---|
| Wholly owned subsidiary | The parent and its nominees hold 100 percent of the share capital | Used in sections 185, 186, 188 and 233 of the Companies Act, 2013 |
| Subsidiary company | Another company controls the board composition or more than one half of the total voting power | Section 2(87) |
| Associate company | Another company controls at least 20 percent of the voting power, or takes part in business decisions under an agreement | Section 2(6) |
| Joint venture company | Two or more partners share ownership under an agreement, for example 51:49 | Shareholders' agreement and the articles |
Source: Companies Act, 2013, sections 2(6), 2(46), 2(87), 185, 186, 188 and 233 (text checked 14 Nov 2026).
Our guide to the holding and subsidiary company test in section 2(87) covers the definition in depth.
The clearest Indian examples come from public institutions, because they publish their group structure. The Reserve Bank of India lists five fully owned subsidiaries on its website.
| Parent | Wholly owned subsidiary | What it does |
|---|---|---|
| Reserve Bank of India | Deposit Insurance and Credit Guarantee Corporation (DICGC) | Insures bank deposits |
| Reserve Bank of India | Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) | Prints bank notes |
| Reserve Bank of India | Reserve Bank Information Technology Private Limited (ReBIT) | Runs technology and cyber security work for the RBI |
| Reserve Bank of India | Indian Financial Technology and Allied Services (IFTAS) | Provides technology services to banks and the RBI |
| Reserve Bank of India | Reserve Bank Innovation Hub (RBIH) | Supports financial innovation |
| National Payments Corporation of India | NPCI International Payments Limited (NIPL), incorporated 3 Apr 2020 | Takes UPI and RuPay to other countries |
| National Stock Exchange of India | NSE Clearing Limited | Clears and settles trades on the NSE |
Sources: Reserve Bank of India, About Us, Subsidiaries; NPCI International Payments Limited; NSE group companies page (all read 14 Nov 2026).
The cross border example is the one we file most often. A company in the United States forms an Indian Private Limited company. The US parent holds 9,999 shares and a group nominee holds 1 share for it. The Indian company is a wholly owned subsidiary of the US parent.
The status can change. If the parent sells even one share to an outside investor, the company is still a subsidiary but no longer wholly owned.
Every wholly owned subsidiary is a subsidiary. Not every subsidiary is wholly owned. The difference is the share held by outsiders.
| Point | Wholly owned subsidiary | Other subsidiary |
|---|---|---|
| Parent's holding | 100 percent, with nominees | More than half the voting power, or control of the board |
| Outside shareholders | None | Yes, a minority |
| Shareholder decisions | The parent decides alone | The parent must respect minority rights in the Act and the articles |
| Loans from an Indian holding company | Section 185(3)(c) exempts them when used for the principal business | The clause (c) exemption does not apply |
| Merger with the parent | Named in section 233 for the fast track route | Fast track only for the classes the rules prescribe; otherwise a scheme before the NCLT |
| Count of layers | One wholly owned layer is ignored | Counts as a layer |
Source: Companies Act, 2013, sections 185, 186 and 233; Companies (Restriction on Number of Layers) Rules, 2017 (text checked 14 Nov 2026).
Yes. A wholly owned subsidiary is a company in its own right. It has its own name, PAN, bank account, contracts, employees and tax return. The parent's liability is limited to any amount unpaid on its shares.
Three points follow from that.
The Act gives a wholly owned subsidiary a few specific reliefs. Most of them apply between an Indian holding company and its Indian subsidiary.
| Provision | What it says | Why it matters |
|---|---|---|
| Section 187(1), proviso | A company may hold shares in its subsidiary in the name of a nominee, if needed to keep the members above the statutory minimum | This is the legal basis for the nominee shareholder |
| Section 185(3)(c) | A holding company may lend to its wholly owned subsidiary, or guarantee its loan | The subsidiary must use the money for its principal business activities |
| Section 186(3), provisos | The special resolution for loans and investments above the limits does not apply to a wholly owned subsidiary | The company still discloses the loan or investment in its financial statements |
| Section 188(1), last proviso | No shareholder resolution for related party transactions with a wholly owned subsidiary | The subsidiary's accounts must be consolidated and placed before the shareholders |
| Section 233 | A holding company and its wholly owned subsidiary can merge by the fast track route | Members holding 90 percent of the shares and creditors holding nine tenths in value must approve |
| Layers Rules, 2017, rule 2 | A company may not have more than two layers of subsidiaries | One layer made up of wholly owned subsidiaries is not counted |
| Section 2(85) | A holding or subsidiary company can never be a small company | The lighter small company filings and fees are not available |
Sources: Companies Act, 2013, sections 2(85), 185, 186, 187, 188 and 233; Companies (Restriction on Number of Layers) Rules, 2017, G.S.R. 1176(E) of 20 Sep 2017 (text checked 14 Nov 2026).
A foreign parent should read this table with care. Sections 185 and 186 govern loans by Indian companies. A loan from a foreign parent to its Indian subsidiary is an external commercial borrowing under FEMA. Our guide to loans from a foreign parent sets out those rules.
Yes, in most sectors. Under the automatic route, a foreign company invests without prior government approval and reports after the shares are issued. Manufacturing, IT services, ecommerce marketplaces, single brand retail, renewable energy and medical devices all take 100 percent foreign direct investment (FDI) on that route.
Three checks come first.
The land border rule looks through the immediate parent. Under Press Note 3 (2020 Series), as amended by Press Note 2 (2026 Series) and S.O. 2174(E) of 1 May 2026, owners from a land border country with more than 10 percent or control bring the investor within the approval rule. Check the whole ownership chain. The country where the parent is registered is not enough.
Our guides to the FDI automatic route sectors and Press Note 3 give the full lists.
Section 3(1)(b) of the Companies Act, 2013 needs two or more persons to form a private company. So a parent that wants 100 percent holds one share through a nominee.
The nominee is the registered holder of that share. The parent keeps the beneficial interest. Section 89 makes both of them declare it.
| Step | Who | Form and time limit |
|---|---|---|
| Declares that it holds the share for the parent | Nominee | Form MGT-4, given to the company |
| Declares its beneficial interest | Parent | Form MGT-5, given to the company |
| Reports the declarations to the Registrar | Company | Form MGT-6, within 30 days of receiving them |
Source: Companies Act, 2013, section 89 (text checked 14 Nov 2026).
A person who misses the section 89 declaration faces a penalty of ₹50,000 plus ₹200 a day, up to ₹5 lakh. On our filings, we prefer a non resident nominee from the parent's group. That keeps every share inside one Form FC-GPR.
Ownership reporting does not stop there. Section 90 asks the company to identify each significant beneficial owner, an individual who holds at least 10 percent indirectly or has significant influence or control. A foreign parent is not exempt. The company files Form BEN-2 within 30 days of receiving the owner's declaration.
Read our guides to the nominee shareholder and BEN-2 with a foreign parent for the documents.
A Private Limited company needs at least two directors. Section 149(3) requires at least one director who stays in India for 182 days or more in the financial year. A company formed during the year applies the test in proportion.
Nationality does not matter. A foreign national living in India can fill the seat. An Indian citizen living abroad cannot, unless that person spends the days in India. A gap attracts a penalty of ₹50,000 plus ₹500 a day, capped at ₹3,00,000 for the company.
Foreign groups usually fill the seat in one of three ways: an Indian employee, a relocated executive or a professional director. The resident director carries full statutory duties and needs the company's records to meet them. Our guide to the resident director rule explains the 182 day count.
Owning all the shares gives the parent the vote. It does not replace governance. The directors still run the Indian company and answer for it. We ask parents to agree these records before operations begin.
| Decision | Record to agree |
|---|---|
| Appointment of directors | The articles, nomination rights and the appointment process |
| Major spending and borrowing | Approval limits and the matters reserved for the board or the shareholder |
| Banking authority | Signatories, transaction limits and access controls |
| Contracts with the parent | Service, licence, funding or supply agreements |
| Financial oversight | The reporting schedule and access to supporting records |
| Ownership changes | The process for transfers, further issues and new investors |
Write the reserved matters into the articles. Terms kept only in a separate agreement may not bind the company. Our guide to the memorandum and articles for a foreign owned subsidiary lists the clauses. For the monthly reporting pack, see the subsidiary control and reporting guide.
A foreign parent incorporates the company through SPICe+ on the MCA portal, opens a bank account, sends the capital and reports it to the RBI. The table shows the order we follow.
| Step | What happens | Time limit or our experience |
|---|---|---|
| 1. Documents | The parent's documents and the directors' papers are notarised and apostilled, or consularised, under rule 13(5) | On our filings, about 4 to 5 business days at the client's end |
| 2. Name | SPICe+ Part A reserves the name | ₹1,000 per application; the name stays reserved for 20 days |
| 3. Incorporation | SPICe+ Part B incorporates the company with PAN, TAN and DINs | MCA registration fee is nil up to ₹15 lakh of authorised capital |
| 4. First auditor | The board appoints the first auditor | Within 30 days of registration |
| 5. Bank account | The company opens a current account with an AD Category I bank | On our filings, about 30 calendar days after incorporation |
| 6. Capital | The parent remits the share capital through banking channels | The shares must be issued within 60 days of receipt |
| 7. FC-GPR | The company reports the issue to the RBI on the FIRMS portal | Within 30 days of the issue |
| 8. INC-20A | A director declares that the subscribers have paid for their shares | Within 180 days of incorporation; no business or borrowing before it |
Sources: Companies Act, 2013, sections 10A and 139(6); Companies (Incorporation) Rules, 2014, rules 13 and 38; FEMA 395/2019-RB, regulation 4; Krystal7 filing practice.
Two practice points save time. Video KYC cannot onboard a foreign director who is abroad, so plan the signatory's bank visit early. Krystal7 has a banking partnership with ICICI Bank, and US based signatories can complete KYC at ICICI's New York branch.
Government cost is small. On our 2026 SPICe+ challans for ₹15 lakh of capital, stamp duty, PAN and TAN came to ₹338 in Haryana and ₹2,603 in Delhi. Our company registration cost calculator runs other states.
This page explains the structure. For the filing itself, see our foreign company registration service. These guides cover single steps: apostille and notarisation, the SPICe+ form, the bank account, the first auditor and INC-20A.
Indian company law sets no minimum paid up capital. The Companies (Amendment) Act, 2015 removed it. Authorised capital is only the ceiling that the memorandum sets on share capital.
Our view is that most foreign subsidiaries should start with exactly ₹15 lakh of authorised capital. The MCA registration fee is nil up to that line. One rupee above it, the subsidiary of a foreign parent pays ₹51,300 on its whole capital, because a subsidiary is never a small company.
Decide how the money comes in before it moves. Share capital needs shares within 60 days and Form FC-GPR within 30 days of the issue. A parent loan is an external commercial borrowing and needs a loan registration number before drawdown. Our guides to authorised capital and government registration fees show the numbers.
A wholly owned subsidiary is a domestic company for tax, even when a foreign parent owns it. It pays tax in India on its worldwide income.
| Item | Wholly owned subsidiary | Branch of the foreign company |
|---|---|---|
| Base tax rate | 25 percent with turnover up to ₹400 crore, or 22 percent under the concessional regime | 35 percent |
| Effective rate | About 25.17 percent under the 22 percent regime | 36.40 to 38.22 percent |
| Profit sent to the parent | Dividend, with 20 percent tax withheld under section 207 plus surcharge and cess, or the lower treaty rate | No dividend step; the branch is part of the foreign company |
| Billing the parent for services | Possible as an export of services | Not an export under GST |
Sources: Income Tax Act, 2025, sections 200 and 207; Integrated Goods and Services Tax Act, 2017, section 2(6)(v); rates for tax year 2026-27.
Every transaction with the parent must be at arm's length. The Chartered Accountant's report in Form 3CEB covers each international transaction with a related party, with no minimum value. For FY 2025-26 it was due by 31 Oct 2026. A dividend needs no RBI approval. The company files Form 145, with Form 146 where required, before the bank remits.
Read more on the corporate tax rate, Form 3CEB and dividends to a foreign parent.
A foreign company has four common ways to work in India. They differ in ownership, permitted work and tax.
| Question | Wholly owned subsidiary | Joint venture company | Branch office | Liaison office |
|---|---|---|---|---|
| Is it a separate Indian company? | Yes | Yes | No | No |
| Who owns it? | The parent, 100 percent | The partners, as agreed | The foreign company itself | The foreign company itself |
| Approval before starting | None in automatic route sectors | None within the sector cap | AD Category I bank, under FEMA 22(R)/2016-RB | AD Category I bank, under FEMA 22(R)/2016-RB |
| Entry test for the foreign company | None | None | Five years of profit and net worth of USD 100,000 | Three years of profit and net worth of USD 50,000 |
| What it can do | Any lawful activity the sector rules allow | The agreed venture | Eight listed activities; no retail trade | Liaison work only; no income |
| Tax rate | 22 or 25 percent base rate | 22 or 25 percent base rate | 35 percent base rate | No income to tax |
| Yearly certificate to the AD bank | None | None | Annual Activity Certificate by 30 September | Annual Activity Certificate by 30 September |
Sources: FEMA 22(R)/2016-RB and the RBI Master Direction on branch and liaison offices; Income Tax Act, 2025.
A joint venture suits a partner who brings a licence, a market or capital, or a sector with a foreign ownership cap. A branch or liaison office suits a narrow or short mandate. A subsidiary suits a business that will hire, sign contracts and grow in India.
Compare further in our guides to the joint venture company, the branch office, the liaison office and the employer of record. For the wider plan, read the India entry strategy guide.
| Advantages | Disadvantages |
|---|---|
| Full ownership and control, with no partner to consult | A full compliance calendar from the first month |
| A separate legal entity, so the parent's liability stays limited | A statutory audit every year, whatever the size |
| A lower tax rate than a branch | Never a small company, so no lighter filings or fees |
| Freedom to do any activity the sector rules allow | A resident director and a nominee shareholder are needed |
| It can bill the parent and treat the service as an export | Transfer pricing applies to every transaction with the parent |
| Dividends go to the parent without RBI approval | Closing takes time; strike off needs two years without business |
Compliance starts with incorporation, not at the first year end. The yearly cycle for a foreign owned Private Limited company looks like this.
| Filing | What it is | Due date |
|---|---|---|
| Statutory audit and AGM | Audited accounts placed before the members | AGM within six months of 31 March; the first AGM within nine months of the first year end |
| AOC-4 | Financial statements filed with the Registrar | Within 30 days of the AGM |
| MGT-7 | Annual return; the shorter MGT-7A is not available to a subsidiary of a foreign company | Within 60 days of the AGM |
| FLA return | Annual return on foreign liabilities and assets to the RBI | 15 July |
| Form 3CEB | Chartered Accountant's report on transactions with the parent | 31 Oct 2026 for FY 2025-26 |
| ITR-6 | Income tax return in a transfer pricing case | 30 Nov 2026 for FY 2025-26 |
| TDS and GST | Monthly deposits and returns | TDS by the 7th; GSTR-1 by the 11th; GSTR-3B by the 20th |
| EDF | Monthly Export Declaration Form for service invoices, from 1 Oct 2026 | Within 30 days after the invoice month |
Sources: Companies Act, 2013, sections 92, 96, 137 and 139; RBI FLA FAQ; Income Tax Act, 2025; FEMA 23(R)/2026-RB.
Our compliance calendar for foreign owned companies lists every date. See also the statutory audit, AOC-4 and MGT-7, the FLA return and the EDF form.
Yes. A company owned by the Indian subsidiary is a step down subsidiary. Two sets of rules apply.
First, FEMA treats the investment as downstream investment, because non residents own the investing company. The new company must meet the FDI route, sector cap and pricing rules. The investing company uses money from abroad or its own internal accruals, not Indian borrowings. It files Form DI with the RBI within 30 days of allotment.
Second, the Companies (Restriction on Number of Layers) Rules, 2017 allow no more than two layers of subsidiaries. One layer made up of wholly owned subsidiaries is not counted. Banks, insurers, systemically important NBFCs and government companies are outside the rule.
Our guide to downstream investment and Form DI covers the tests.
Bringing in another shareholder. A new issue or a transfer ends the wholly owned status. A transfer between a resident and a non resident needs Form FC-TRS within 60 days and a price that meets the FEMA pricing rules. Section 71 of the Income Tax Act, 2025 can also withdraw the capital gains relief. It applies to assets moved to the subsidiary when ownership changes within eight years.
Merging with the parent. Section 233 lets a holding company and its wholly owned subsidiary merge by the fast track route. The Central Government approves the scheme, not the NCLT. Since 17 Sep 2024, rule 25A(5) lets a foreign holding company merge into its wholly owned Indian subsidiary by the same route. Our guide to cross border mergers under rule 25A explains it.
Closing. A company with no liabilities and no business in the two preceding financial years can apply for strike off. It files Form STK-2 with a fee of ₹10,000. A solvent company that must return capital uses voluntary liquidation under section 59 of the Insolvency and Bankruptcy Code. See our guide to closing an Indian subsidiary.
Moving money back. Dividends, share transfers, buybacks, service payments and loan repayments are different transactions. Each needs its own company law, tax and FEMA review. The profit repatriation guide compares them.
A Delaware corporation sets up a wholly owned subsidiary in Gurugram, Haryana. The company is incorporated on 1 Dec 2026 with ₹15 lakh of authorised capital.
| Event | Rule | Date in this example |
|---|---|---|
| Incorporation | Certificate of incorporation | 1 Dec 2026 |
| First auditor | Within 30 days of registration | By 31 Dec 2026 |
| Capital received from the parent | Inward remittance to the Indian bank account | 6 Jan 2027 |
| Shares issued | Within 60 days of receipt | By 7 Mar 2027; issued on 20 Jan 2027 |
| Form FC-GPR | Within 30 days of the issue | By 19 Feb 2027 |
| INC-20A | Within 180 days of incorporation | By 30 May 2027 |
| First AGM | Within nine months of the first year end, 31 Mar 2027 | By 31 Dec 2027 |
Sources: Companies Act, 2013, sections 10A, 96, 139(6) and 149(3); FEMA 395/2019-RB; Krystal7 SPICe+ challan, Haryana (14 Aug 2026).
The parent later needs more money in India. The company issues more shares within the ₹15 lakh limit. Each allotment needs its own Form FC-GPR within 30 days.
If you want us to set up and run the subsidiary, see our foreign company registration service. The published fee band is USD 1,200 to USD 1,700, with government fees passed on at cost. The country guides list the documents needed from each home country.
It is a company fully owned by one parent company. The parent and its nominees hold all the shares, and no outside investor holds any. The subsidiary is still a separate company with its own accounts and tax return.
WOS stands for wholly owned subsidiary. The term describes a company whose entire share capital is held by its holding company.
The Reserve Bank of India fully owns DICGC, BRBNMPL, ReBIT, IFTAS and the Reserve Bank Innovation Hub. NPCI International Payments Limited is a wholly owned subsidiary of NPCI. NSE Clearing Limited is a wholly owned subsidiary of the National Stock Exchange.
A subsidiary is controlled through the board or through more than half the voting power, under section 2(87). A wholly owned subsidiary is one where the parent holds all the shares. A subsidiary can have minority shareholders, and a wholly owned one cannot.
No. Section 2(87) defines a subsidiary company. The Act uses "wholly owned subsidiary" in sections 185, 186, 188 and 233 without defining it. In practice it means the holding company and its nominees hold the whole share capital.
Yes. It is a company with its own legal identity, assets, contracts and liabilities. The parent's liability is limited to its share capital.
Yes, in most sectors under the automatic route. Some sectors have caps, a few are prohibited, and investors linked to land border countries need government approval. The company reports the investment in Form FC-GPR within 30 days of issuing shares.
Two. Section 3(1)(b) needs at least two members for a private company. The parent holds all the shares except one, and a nominee holds that one share for the parent.
It needs one director who stays in India for 182 days or more in the financial year, under section 149(3). That director can be of any nationality. A new company applies the test in proportion in its first year.
There is no minimum paid up capital. We advise ₹15 lakh of authorised capital for most foreign subsidiaries, because the MCA registration fee is nil up to that amount.
It is taxed as a domestic company at a base rate of 25 percent, or 22 percent under the concessional regime. The effective rate under the 22 percent regime is about 25.17 percent. A branch of a foreign company pays a base rate of 35 percent.
An Indian holding company can, under section 185(3)(c), if the subsidiary uses the money for its principal business. A loan from a foreign parent is an external commercial borrowing. It needs a loan registration number before drawdown.
It is a subsidiary of a subsidiary. When a foreign owned Indian company invests in another Indian company, FEMA treats it as downstream investment. The investing company files Form DI within 30 days of allotment.
Yes. Section 233 provides a fast track merger between a holding company and its wholly owned subsidiary. Since 17 Sep 2024, a foreign holding company can also merge into its wholly owned Indian subsidiary by that route.
Yes. Every Indian company needs a statutory audit, whatever its size or revenue. Only a Chartered Accountant in practice in India can sign the audit report.
On our filings, the parent's documents take about 4 to 5 business days to notarise and apostille. The bank account takes about 30 calendar days after incorporation. The capital and Form FC-GPR follow.
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WRITTEN BY
CA Nandini is a co-founder of Krystal7. She leads brand, business development and marketing, and works with founders to define their engagement. She is a Chartered Accountant and achieved All India Rank 49 in the CA examinations.
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IncorporationWhich documents a foreign founder or parent company must notarise, apostille or consularise for an Indian incorporation, with a 13 country route table, the German and UAE exceptions, document age rules and a checklist.
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IncorporationWhat section 12 and rule 25 require for a new company's registered office, which address proofs work for homes, rented and co working premises, and how the state, GST and bank checks depend on the same address.
Read the guide ↗ServiceOne Person Company registration in India: DSC, name approval and SPICe+ filing in about 8 to 10 working days. NRIs can register an OPC since April 2021.
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IncorporationEvery government charge in an Indian incorporation, proved with two real SPICe+ challans: nil MCA fee up to ₹15 lakh, ₹1,000 for the name, ₹143 for PAN and TAN, and stamp duty by state.
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Cross-BorderHow a foreign partner sets up a joint venture company in India in 2026. It covers structures, FDI caps, Press Note 3, FEMA pricing, shareholders agreement limits, CCI thresholds, filings, exits and tax, with a 51:49 example.
Read the guide ↗ServiceRegister your Public Limited Company in India with Krystal7 Consultants. Professional PLC registration services with expert guidance and compliance support.
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IncorporationHow the Registrar tests a proposed company name under section 4 and rules 8, 8A and 8B, how SPICe+ Part A and RUN work, how long a name stays reserved, and the rejection reasons we see most on our filings.
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IncorporationHow a foreign director gets a Class 3 DSC for Indian company filings: the CCA rules, the documents, the video check, personal or organisation certificates, renewal, and when a founder needs no DSC at incorporation.
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Cross-BorderWhat a foreign founder or director may do in India on a business visa or e Business visa, how long each stay lasts, the June 2026 FRRO rule change, payments, employment visa triggers, tax residency and PE.
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Cross-BorderHow a foreign company opens and runs a liaison office in India in 2026: the three year profit and USD 50,000 net worth test, AD bank or RBI approval, permitted work, AAC by 30 September, Form 162, PE risk and closure.
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Cross-BorderWho needs an employment visa in India, the INR 16.25 lakh salary floor, documents the Indian company signs, validity, FRRO registration under the 2025 Rules, director cases, tax, PF and the compounding fees for getting it wrong.
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IncorporationHow a foreign national becomes a director of an Indian company in 2026: the 182 day resident director rule, DIN through SPICe+ or DIR-3, apostille by country, DSC by video, DIR-12 in 30 days and the new three year KYC.
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IncorporationThe structure, steps, licences, costs and transfer pricing model for a foreign parent setting up an Indian software subsidiary or dev center.
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IncorporationHow a foreign parent sets up an Indian manufacturing entity: FDI route, the licence map by authority, honest timelines and the tax position in 2026.
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IncorporationThe FDI position, registration steps, environmental and safety licence map, and costs for foreign investors entering India's chemical sector.
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Cross-BorderThe five types of India advisers compared honestly for foreign founders: who each suits, the questions that expose a bad fit, real fee ranges, and where Krystal7 Consultants fits.
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Country GuidesThe questions global founders actually ask before an India entry: what FEMA compliance means, who is responsible, how registration works from abroad, what it honestly costs, and the calendar that follows.
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IncorporationYes, a foreign-owned Private Limited company can register on Udyam. The revised thresholds, the portal steps, and what changes when the entity has FDI.
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IncorporationThe SPICe+ form on the MCA portal, part by part: name reservation, the Part B fields that cause resubmissions, linked forms, 2026 fees and stamp duty, documents and a realistic timeline.
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IncorporationThe right company registration provider for a foreign founder should assess the investor and proposed activity before quoting the filing. Compare the full scope through banking and investment reporting, the people responsible and the recurring compliance work. A certificate alone does not show that the business is ready to operate.
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IncorporationForeign founders can register a company in India, subject to the proposed activity, investment route and ownership checks. Decide whether you will invest personally or through an existing overseas company before preparing documents. A parent company should use the foreign subsidiary registration service to plan its corporate ownership and reporting.
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IncorporationThe truth about top rated online company registration services in India for 2026: how rankings are made, real costs, 8 to 10 working day timelines, and how to actually choose.
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Cross-BorderChoosing your India entry route in 2026: subsidiary, branch, LO or LLP compared on control, tax, FEMA and speed, with a decision framework for founders.
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Cross-BorderHow India's Production Linked Incentive schemes work in 2026, which sectors they cover, what Uttar Pradesh and Tamil Nadu add, how incentives are taxed under the Income Tax Act, 2025, and a checklist for a foreign manufacturer.
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IncorporationWho qualifies for DPIIT startup recognition under the February 2026 notification, why a foreign subsidiary does not, how to apply on NSWS, the benefits, the section 140 tax holiday and the usual rejection reasons.
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Cross-BorderHow CBIC's AEO programme works in India: the four tiers, eligibility, benefits, monthly deferred duty from 1 Mar 2026, mutual recognition, the application and whether a foreign owned subsidiary should apply.
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Cross-BorderHow customs duty in India is built from BCD, SWS, AIDC and IGST, how customs values imports from a foreign parent, how the bill of entry works on ICEGATE, and what drawback and advance authorisation save.
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IncorporationHow an Indian company issues shares to foreign investors by private placement under section 42 and rule 14, with PAS-4, the 200 person limit, deadlines, FEMA pricing and FC-GPR.
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Cross-BorderWhich countries have a social security agreement with India, how a certificate of coverage exempts posted workers, how EPFO issues one for Indian staff going abroad, totalisation, PF withdrawal and the 2026 scheme.
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Cross-BorderBengaluru, Hyderabad, Pune or Gurugram for a foreign tech subsidiary: talent, office costs, state IT and GCC policies, professional tax, shops and establishments law, lease stamp duty and a decision table.
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Cross-BorderHow the Budget 2026 data centre tax holiday works under Schedule IV serial 13C, what changed in August 2026, the 15 percent safe harbour, infrastructure status, state policies, power, DPDP localisation and the FDI route.
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Cross-BorderWhat an Indian importer must declare, hold and produce under section 28DA and CAROTAR 2020, how customs verifies a claim, and how it works for imports under the UAE, Australia, UK and EFTA deals.
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Cross-BorderTEPA has applied between India and Switzerland, Norway, Iceland and Liechtenstein since 1 Oct 2025. Tariff cuts, origin proof, the investment goal and how it sits with the DTAAs.
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Cross-BorderHow a foreign group sets up in GIFT IFSC: the IFSCA framework, funds, banking units, leasing, fintech and in house centres, the section 147 tax holiday, currency, FEMA status, approvals, and a Singapore and Dubai comparison.
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Cross-BorderThe 6 Feb 2026 India US framework, the 2025 tariff escalation to 50 percent, what changed after the Supreme Court ruling, and the transfer pricing and customs effects for an Indian subsidiary.
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Cross-BorderWho must register with the FRRO, the 14 day deadline under the Immigration and Foreigners Rules, 2025, e FRRO steps, documents, the certificate of registration, address changes, departure, penalties and the employer's duties.
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Cross-BorderHow a startup moves its holding company from the US or Singapore to India, comparing the inbound merger, share swap and share purchase routes, with FEMA approvals, pricing, shareholder tax, timelines and lessons.
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Cross-BorderThe India EU FTA was concluded on 27 Jan 2026 but is not yet signed or in force. Tariff cuts by sector, the origin rules, services and what it does not change for an EU parent.
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IncorporationHow Indian private companies issue sweat equity shares under section 54 and rule 8, with limits, valuation, lock in, FEMA rules for non residents, tax as a perquisite and ESOP comparison.
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Cross-BorderHow a foreign company sets up an SEZ unit in India: Form F, the Letter of Approval, the bond, net foreign exchange, tax after the section 10AA sunset, GST zero rating, IT units, exit and the 2025 and 2026 reforms.
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Cross-BorderHow a foreign owned Indian company gets an Importer Exporter Code from DGFT, when service exporters need one, the April to June update, deactivation, and the links to customs, GST and FEMA export reporting.
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Cross-BorderHow a foreign parent seconds staff to an Indian subsidiary: the agreement, the real employer test, GST after Northern Operating Systems, PE and TDS after Centrica, payroll and provident fund, with a checklist.
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IncorporationEvery Indian company needs one director who stays in India for 182 days in the financial year. How foreign groups fill the seat, the forms, the liability, the first year rule and the section 172 penalty.
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Cross-BorderHow a foreign group sets up a global capability centre in India, from entity choice and cost plus pricing to the 15.5 percent safe harbour, SEZ or STPI, GST on exports, PE risk, payroll and the yearly filings.
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FEMA & RBIIndia has no direct conversion of a branch or liaison office into a subsidiary. Here are the steps in order, from incorporation and asset transfer at book value to GST, staff, AD bank closure, Form FC-2, PAN and TAN.
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FEMA & RBIHow an Indian subsidiary runs a section 62(1)(a) rights issue for its foreign parent in 2026: offer periods, FEMA pricing on renounced shares, demat, PAS-3 and FC-GPR within 30 days, with a worked example.
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FEMA & RBIHow an Indian subsidiary turns a foreign parent loan, ECB interest, import payables or pre incorporation costs into shares, with the Companies Act route, FEMA conditions, pricing, filings, tax and a worked example.
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FEMA & RBIHow the Overseas Investment Rules and Regulations 2022 work for an Indian company that sets up or buys a foreign entity in 2026: ODI vs OPI, the 400 percent limit, Form FC and UIN, the two layer rule, APR and late fees.
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FEMA & RBIHow a foreign company opens and runs a branch or project office in India in 2026: the eight permitted activities, the profit and net worth test, AD bank approval, the 35 percent tax rate, AAC, FC-3, profit remittance and closure.
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FEMA & RBISOFTEX stopped applying to software exports invoiced from 1 October 2026, when FEMA 23(R)/2026-RB came into force. What to do with September invoices, how the monthly EDF replaces the form, and the nine month realisation rule.
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FEMA & RBISince 1 October 2026 every exporter of services and software files a monthly Export Declaration Form (EDF) under FEMA. Who files it, where, the due dates, the nine month realisation rule and what a missed EDF costs.
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FEMA & RBIThe legal line between FDI and FPI in India: the NDI Rules 10 percent test, SEBI registration, reclassification within five trading days, tax under the Income Tax Act, 2025, reporting and the right route for a foreign parent.
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FEMA & RBIHow FEMA prices shares issued or transferred to non residents in 2026: rule 21 floor and ceiling, who values, DCF, the 90 day report, CCPS and CCD conversion, swaps, angel tax after its repeal, and rule 57 under the Income Tax Act, 2025.
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FEMA & RBIHow an Indian company files PAS-3 when a foreign investor takes shares: the 30 and 15 day clocks, attachments by route, fees, the order with FC-GPR, penalties and fixing a missed return.
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FEMA & RBIWhat RBI purpose codes are, what P0802 and P0807 mean after SOFTEX ended on 1 Oct 2026, the codes for service exports, FDI and payments to a foreign parent, and how to fix a wrong code with your bank.
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FEMA & RBIHow shares of an Indian Private Limited company move between a resident and a non resident in 2026: FEMA pricing, SH-4 and demat, stamp duty, FC-TRS within 60 days, deferred payment, capital gains, TDS and treaties.
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FEMA & RBIWhat a FIRC and an eBRC are, how to get each from your bank and the DGFT portal, the GST refund link, the 2026 FEMA export rules with EDF and nine month realisation, and fixes for missing certificates.
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FEMA & RBIHow an EEFC account works for a foreign owned Indian company or exporter in 2026: the 100 percent credit rule, permitted debits, the monthly conversion rule, interest, GST refunds, worked examples and a checklist.
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FEMA & RBIHow a foreign parent lends to its Indian subsidiary under the 2026 ECB rules: who can lend, the USD 1 billion limit, end uses, Form ECB 1 and ECB 2, late fees, withholding tax and transfer pricing.
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FEMA & RBIWho files the Annual Performance Report for overseas direct investment, the 31 December due date, when unaudited accounts are allowed, how AD banks file it in 2026, and the flat INR 7,500 late fee.
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FEMA & RBIA practical guide for foreign founders on identifying FDI automatic route sectors in India, understanding when government approval applies, and what to confirm before incorporating or accepting investment.
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FEMA & RBIForm FC-GPR, also written FCGPR: what it reports, the 30 day clock from allotment, the FIRMS portal steps through your AD bank, the certificates the form needs, and what a late filing costs.
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FEMA & RBIA practical guide for foreign founders on FDI reporting requirements in India, covering when RBI reporting applies, which filings to prepare, common mistakes, and when to bring in a compliance advisor.
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FEMA & RBIEvery legal route from an Indian subsidiary to its foreign parent with 2026 rates: dividends under treaty, royalties, buyback after April 2026, and the filings banks actually check.
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FEMA & RBIA step by step guide for foreign investors allotting shares in an Indian company: FEMA and Companies Act requirements, Automatic versus Approval Route, FMV pricing under FEMA valuation norms, FC-GPR filing on the FIRMS portal, and the post allotment compliance calendar covering PAS-3, annual return, and FLA.
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FEMA & RBIA practitioner walkthrough of FEMA compounding under the 2024 Rules: PRAVAAH filing, the INR 10,000 fee, penalty caps and the 180 day order timeline.
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FEMA & RBIThe full FDI compliance map for foreign owned companies in India: FC-GPR, FCTRS, FLA, sectoral caps and the penalties for getting reporting wrong.
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FEMA & RBIFC-GPR and FC-TRS are the two FEMA forms every foreign investor in an Indian company eventually meets. This guide sets out the difference between them in one table, explains when each applies, the 30 and 60 day filing clocks, and how to file correctly on the FIRMS portal.
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FEMA & RBIFC-GPR filing for foreign investment in India: the 30 day timeline, FIRMS portal steps, documents, LSF for delays and how to file without rejections.
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FEMA & RBILate or defective FC-GPR? Understand LSF regularisation versus compounding under the 2024 FEMA Rules, the PRAVAAH process, fees and timelines.
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FEMA & RBIHow Indian exporters net export receivables against import payables with the same overseas buyer, supplier or their group companies under FEMA, with the AD bank's role, EDPMS and IDPMS closure, write off limits and documents.
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FEMA & RBIHow FEMA treats OCI cardholders who invest in or direct Indian companies, with repatriation and non repatriation routes, FEMA and tax residence, DIN and KYC, Press Note 3, property and bank accounts.
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FEMA & RBIHow RBI computes the late submission fee for delayed FC-GPR, FC-TRS, LLP, ODI, FLA and ECB filings, the three year window, the cap, how to pay, the 2026 ECB changes and when compounding takes over.
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FEMA & RBIHow foreign partners invest in an Indian LLP under Schedule VI of the NDI Rules, with the sector test, designated partners, pricing, Form LLP(I) and LLP(II), conversion, tax and when an LLP fits.
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FEMA & RBIHow a foreign company merges into an Indian company under section 234 and rule 25A, the 2024 fast track for a foreign parent and its subsidiary, FEMA deemed approval, two year windows, tax and stamp duty.
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FEMA & RBIHow an Indian company pays a foreign supplier or its parent in advance for goods or services under the FEMA import rules in force from 1 Oct 2026, with guarantees, IDPMS, time limits and repatriation.
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FEMA & RBICase note on published RBI compounding orders for late FC-GPR, ARF and FC-TRS reporting and late share issues, with the amounts RBI charged, the compounding matrix, the late submission fee route and what to do now.
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FEMA & RBIHow rule 9(6) of the NDI Rules lets buyers and sellers defer, escrow or indemnify up to 25 percent of the price for 18 months, and how pricing, FC-TRS, escrow accounts, TDS and capital gains timing work.
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FEMA & RBIHow foreign investors fund Indian companies with CCDs, CCPS, warrants and convertible notes, with the NDI Rules, conversion pricing, coupons, tax, FC-GPR, Form CN and company law steps.
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FEMA & RBIThe time limit to realise and repatriate export value under FEMA for goods and services, the 2025 and 2026 changes, EDPMS, extension, set off, reduction and write off, and the GST refund consequences.
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FEMA & RBIHow rule 23 of the NDI Rules treats investment by a foreign owned or controlled Indian company, with the ownership and control tests, caps, pricing, the funds rule, Form DI and the annual auditor certificate.
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FEMA & RBIWhen an Indian company or foreign owned subsidiary must hold a Legal Entity Identifier under RBI rules for cross border payments, bank loans, forex deals and RTGS, and how to get and renew one.
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FEMA & RBIWhat Press Note 3 (2020) requires, the seven countries it covers, the 2026 beneficial owner test, the 10 percent automatic route, DPIIT reporting, approval timelines and the filing steps.
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Transfer PricingHow India taxes a management fee paid to a UAE parent: no FTS article in the treaty, PE risk, TDS and Forms 145 and 146, reverse charge GST, the benefit test, disallowance risks and UAE corporate tax, with a worked example.
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Transfer PricingA practical guide for foreign founders on India's safe harbour rules for transfer pricing, covering when they apply to related party transactions, how they fit into compliance, and what to check before relying on them.
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Transfer PricingWho files Part A and Part B of Form 56, when an Indian subsidiary files Form 58 or the CbC report itself, the 2026 and 2027 due dates, penalties under sections 442 and 459, and two worked examples.
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Transfer PricingA practical guide for foreign founders on when Form 3CEB applies to an Indian entity, what to prepare for the chartered accountant, and how to avoid missed portal actions around transfer pricing reporting.
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Transfer PricingThe six prescribed methods under section 165 of the Income-tax Act, 2025 (formerly section 92C) with a worked example of each, the 1 to 3 percent tolerance range, safe harbour, and Form 3CEB documentation.
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Transfer PricingA practical guide for foreign founders on transfer pricing documentation requirements in India, covering local file, master file, intercompany agreements, benchmarking, and when to bring in an advisor for an Indian subsidiary.
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Transfer PricingCase note on the Delhi High Court rulings that decide management fee disputes for Indian subsidiaries: benefit, duplication, shareholder costs, allocation keys, aggregation, the 2026 safe harbour and the documents that win.
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TaxHow an Indian subsidiary buys back shares from its foreign parent under section 68, prices the buyback under FEMA, files FC-TRS, and withholds tax now that buybacks are capital gains again.
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Income Tax & TDSHow an Indian company claims credit for tax withheld abroad in 2026: rule 128 and Form 67 for AY 2026-27, rule 76 and Forms 44 and 45 from tax year 2026-27, due dates, documents, disputes and worked examples.
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Income Tax & TDSHow India's General Anti Avoidance Rule works for foreign groups in 2026: Chapter XI of the Income Tax Act, 2025, the INR 3 crore test, grandfathering, the Approving Panel, PPT and LOB, and the substance file.
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Income Tax & TDSHow the India Netherlands DTAA taxes a Dutch company in 2026: 10 percent rates, the MFN clause after Nestle SA, share sales under Article 13(5), PE without a service clause, the MLI and Form 41.
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Income Tax & TDSHow the India Mauritius DTAA taxes a Mauritius company in 2026: treaty rates, source taxation of share gains after the 2016 protocol, grandfathering, Article 27A, the 2024 PPT protocol, Tiger Global, TRC and substance.
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TaxHow the India Singapore DTAA taxes a Singapore company in 2026: treaty rates, the make available test, capital gains after 2017, Article 24A, the MLI principal purpose test, PE triggers, Form 41 and substance.
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Income Tax & TDSWhen a foreign company becomes tax resident in India under POEM in 2026: section 6(10), CBDT Circular 6 of 2017, the active business test, the INR 50 crore threshold, founder risk and the tax cost.
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Income Tax & TDSHow India taxes RSUs and ESOPs that a foreign parent grants to staff of its Indian subsidiary in 2026: perquisite value under rule 15, TDS, cross charges, FEMA, capital gains, Schedule FA and Form 44.
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Income Tax & TDSHow the India Germany DTAA taxes a German company in 2026: the flat 10 percent rates, managerial fees, the missing service PE rule, capital gains, the MLI position, the Nestle MFN ruling and Form 41.
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Income Tax & TDSHow a foreign company gets a lower or nil TDS certificate in Form 128 under section 395 and rule 213: who can apply, documents, how the officer sets the rate, validity, the payer's Form 144 entry, and a UK SaaS example.
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Income Tax & TDSWhich return a foreign owned company in India files, the extended AY 2026-27 due dates, the ITR-6 schedules foreign owners trigger, the 22 percent regime and MAT credit choice, late filing costs and the move to the 2025 Act.
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Income Tax & TDSHow a foreign company or foreign national gets an Indian PAN in 2026: Form 96 and Form 95 replace Form 49AA, the apostilled registration certificate, fees, the Indian representative, rule 217 relief from higher TDS, and two worked examples.
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Income Tax & TDSHow an Indian subsidiary or a foreign company gets a TAN under section 397 of the Income Tax Act, 2025: Forms 134 and 135, rule 216 timing, documents, the INR 10,000 penalty, and the TDS work that follows.
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Income Tax & TDSHow the India UAE DTAA taxes a UAE company in 2026: who counts as a UAE resident, treaty rates, technical fees without an FTS article, free zone companies, capital gains, the MLI principal purpose test, PE, UAE corporate tax and documents.
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Income Tax & TDSHow the India UK DTAA taxes a UK company in 2026: Articles 11 to 14 rates, the make available test, service PE day counts, capital gains under Indian law, the MLI principal purpose test and Form 41.
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Income Tax & TDSHow the India US tax treaty taxes a US company in 2026: dividend, interest and royalty caps, fees for included services and the make available test, service PE, Article 24 LOB, capital gains, Form 41 and Form 6166.
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Income Tax & TDSWhat a non resident needs to claim treaty rates in India in 2026: the foreign TRC, Form 41 (old Form 10F) filed online, PAN or rule 217 details, validity rules, and Forms 42 and 43 for an Indian company's own TRC.
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Income Tax & TDSSection 63 of the Income Tax Act, 2025 keeps the INR 1 crore and INR 10 crore tax audit limits. See who needs an audit, the FY 2025-26 forms and dates, Form 26 from tax year 2026-27 and the new flat fee.
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Income Tax & TDSA section and form map from the 1961 Act to the Income Tax Act, 2025 for foreign owned subsidiaries, with the FY 2025-26 transition rule, tax year 2026-27 due dates and the 2026 MAT change.
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Income Tax & TDSA practical guide for foreign founders on how permanent establishment risk arises in India through employees, contracts, offices, and vendors, and how to structure India activity to reduce that exposure before scaling up.
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Income Tax & TDSForms 15CA and 15CB became Forms 145 and 146 on 1 Apr 2026. The four parts of Form 145, the rule 220 exemptions, treaty claims, portal steps, penalties and a worked royalty example.
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Income Tax & TDSThe corporate tax rate in India for foreign companies is 35 percent plus surcharge and cess. Full rate table with effective rates, DTAA withholding relief and the subsidiary comparison.
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Income Tax & TDSHow an Indian company deducts tax on royalty, fees, interest and dividends paid abroad in 2026, with section 393 and 207 rates, treaty rates for eight countries, rule 217, Forms 41, 128, 144 and 131, and a US example.
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TaxFor a foreign owned subsidiary, GST is not just registration, it is export refunds, reverse charge and a monthly filing rhythm. Here is a ranked, honest 2026 guide and who each firm suits.
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TaxCross border tax for founders in India: permanent establishment risk, withholding tax, treaty relief and transfer pricing, explained for 2026.
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TaxWhen minimum alternate tax applies to foreign companies and Indian subsidiaries: section 115JB and section 206, the 14 percent final MAT, book profit, the foreign company exclusions, MAT credit and the section 200 choice.
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TaxHow the single tax year in section 3 of the Income Tax Act, 2025 replaces previous year and assessment year from 1 Apr 2026, how returns, advance tax, TDS and assessments are labelled, and how FY 2025-26 income is handled.
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TaxWhy angel tax under section 56(2)(viib) ended from AY 2025-26, which old share issues to foreign investors are still exposed, and the FEMA, Companies Act and income tax rules that still apply.
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TaxAdvance tax for companies in India: the four due dates, the INR 10,000 threshold, section 405 computation, interest under sections 424 and 425 (old 234B and 234C), online payment and a cost plus example.
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TaxThe history of India's equalisation levy, the end of the 2 percent e commerce levy on 1 Aug 2024 and the 6 percent advertising levy on 1 Apr 2025, and the income tax, withholding and GST rules that now apply.
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TaxHow the India Canada DTAA taxes a Canadian parent and its Indian subsidiary: dividend, interest and royalty caps, fees for included services, the related enterprise service PE, capital gains, the MLI and the papers.
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TaxHow the India Australia DTAA taxes an Australian parent and its Indian subsidiary: 15 percent dividends and interest, the royalty bands, management fees, the 183 day service PE, section 11J and ECTA.
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TaxWhen a foreign company is taxable in India: business connection under section 9 of the Income Tax Act, 2025, the INR 2 crore and 3 lakh user SEP tests, agents, treaty PE override, digital businesses and a decision table.
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TaxThe rates, holding period, withholding, treaty exemptions for Mauritius, Singapore and Netherlands sellers, buyer side fair value rules and FEMA reporting when a non resident sells unlisted Indian shares.
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TaxWhat Union Budget 2026 and the Finance Act, 2026 changed for foreign owned Indian companies and non residents: MAT, buy back tax, withholding, transfer pricing, new exemptions, customs, GST and FEMA.
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TaxHow India's thin capitalisation rule works for Indian subsidiaries: section 94B and section 177, the INR 1 crore trigger, the 30 percent of EBITDA cap, guarantees, exclusions, parent ECBs and the carry forward.
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TaxCase note on AAR v Tiger Global International II Holdings (2026 INSC 60): the facts, the order, grandfathering under Article 13(3A), TRCs, GAAR and what Mauritius and Singapore holding structures should do now.
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TaxHow India decides the tax residency of a foreign employee: the 182 day and 60 plus 365 day tests, not ordinarily resident status, salary for work in India, the 90 day and treaty short stay exemptions, and the papers.
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TaxHow the India France DTAA taxes a French parent and its Indian subsidiary: the 10 percent rates, the MFN clause after Nestle SA, technical fees, PE, the 10 percent share rule, the MLI and Form 41.
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TaxCase note on AO v Nestle SA (2023 INSC 928): why MFN clauses in India's treaties need a notification, what Switzerland, the Netherlands and France did next, and the dividend rates that apply today.
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TaxHow the India Japan DTAA taxes a Japanese parent and its Indian subsidiary: the 10 percent rates, the wide technical fee definition, JBIC and NEXI interest, PE, capital gains, the MLI and Form 41.
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TaxHow Form 27Q works for TDS on payments to non residents, what goes into it, the 31 July to 31 May due dates, Form 131, corrections, late fee and penalty, and the switch to Form 144 under the Income Tax Act, 2025.
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