by CA V. Viswanathan
FCA, ACS, CFE, Registered Valuer (S&FA) | Since 2012
Check if your proposed Overseas Direct Investment (ODI) qualifies under the automatic route per FEMA ODI Regulations, or requires RBI/Government approval.
Setting up an Indian subsidiary of a foreign parent involves: (a) FEMA-compliant foreign investment routing under FDI policy; (b) incorporation as Pvt Ltd or wholly-owned subsidiary (WOS); (c) authorised capital and stamp duty optimisation; (d) Director appointments including the resident-director requirement under Section 149(3); (e) FC-GPR filing within 30 days of share allotment with FEMA pricing certificate; (f) GST registration, PAN/TAN, and bank account opening; (g) initial team setup with PF/ESI/PT compliance.
Sectoral consideration: most sectors permit 100% FDI under automatic route; specific sectors (defence beyond 74%, broadcasting sub-sectors) require government approval; Press Note 3 country-of-origin restrictions apply for entities from countries sharing land borders with India.
This advisor maps your foreign-parent profile and proposed Indian activity to the appropriate structure and compliance pathway. For end-to-end Indian subsidiary setup including transfer pricing planning for inter-company transactions, consult CA V. Viswanathan at +91 99622 60333.