Set up a company in India and keep it compliant from one partner.
India is a large, fast-growing market that rewards commitment and punishes casual entry.
Entity type
Private limited company
Registrar
Ministry of Corporate Affairs (MCA)
Directors required
2 minimum, 1 India-resident
Incorporation is well-defined, but the recurring compliance is genuinely demanding — multiple authorities, frequent filings and a tax system with several moving parts. Having a local expert on the regulatory detail is not a luxury here; it’s the difference between a presence that runs cleanly and one that accrues notices.
Our role
India
India becomes a growth market, not a compliance burden
Entity setup and registrations
Accounting and tax compliance
Global payroll
Tax rates, thresholds and statutory requirements in India change and vary by activity. Treat the figures above as a starting point — we confirm the current position with you before anything is filed.
What it takes to incorporate
A private limited company registered with the Ministry of Corporate Affairs (MCA), with at least two directors and two shareholders.
At least one director who is resident in India — a requirement we can help satisfy where you have no qualifying individual.
Director identification numbers and digital signature certificates for the proposed directors.
A registered office in India and the company’s PAN and TAN — its core tax registrations.
What it takes to operate
GST registration and regular GST returns — among the most frequent recurring filings in the Indian system.
TDS (tax deducted at source) compliance — withholding, deposit and periodic returns on a range of payments.
Payroll with provident fund, professional tax and other statutory deductions handled correctly.
Annual obligations to the Registrar of Companies (ROC), the income-tax return, and a statutory audit, broadly required for Indian companies.
FAQs
India
Frequently asked questions
Still have a question about setting up here? Talk to an expert
Does a foreign company need a local resident director to set up an Indian subsidiary?
Yes. Under the Indian Companies Act, every Indian company, including a 100% foreign-owned, Wholly Owned Subsidiary (WOS), must have at least one director who resides in India for a minimum of 182 days during the financial year. Spera provides local corporate secretarial representation, local directorship guidance, and statutory governance to ensure your Indian entity remains fully compliant with the Ministry of Corporate Affairs (MCA).
What is the difference between an Indian Subsidiary, Branch Office, and Liaison Office?
The right structure depends on your operational goals: • Indian Subsidiary (Private Limited): A separate legal entity with limited liability. It can generate revenue locally, hire employees, issue invoices, and operate under 100% Foreign Direct Investment (FDI) in most sectors via the automatic route. • Liaison Office (LO): Acts solely as a communication channel between the foreign parent and Indian parties. It cannot conduct commercial activities or generate revenue in India. • Branch Office (BO): An extension of the foreign parent entity permitted to perform specific business activities (e.g., export/import, consultancy) subject to Reserve Bank of India (RBI) approval.
How long does it take to incorporate a foreign subsidiary in India and open a local bank account?
Incorporating an Indian Private Limited Company via the MCA’s integrated SPICe+ portal generally takes 3 to 4 weeks, provided all foreign parent company documents (Board Resolutions, MoA/AoA, Power of Attorney) are properly notarized and apostilled in your home country. Opening a corporate bank account and completing post-incorporation RBI/FEMA filings (such as filing Form FC-GPR for foreign direct investment) takes an additional 2 to 4 weeks.
What are the primary ongoing tax and secretarial compliance requirements in India?
Once incorporated, your Indian subsidiary must comply with key statutory obligations managed under Indian law: • GST & TDS: Monthly/quarterly Goods and Services Tax (GST) returns and Tax Deducted at Source (TDS) filings. • MCA / ROC Filings: Annual financial statements (Form AOC-4) and Annual Returns (Form MGT-7) filed with the Registrar of Companies (RoC). • Statutory Audit & Transfer Pricing: Mandatory annual financial audit by a chartered accountant and international transfer pricing documentation for arm’s-length transactions with foreign parent entities.
How can a parent company repatriate profits and funds out of its Indian subsidiary?
Foreign parent entities can repatriate profits back to their home jurisdiction after satisfying local tax obligations: • Dividends: Paid out of net profits after corporate income tax. Dividend payments to non-resident shareholders are subject to Tax Deducted at Source (TDS) under Indian tax laws and applicable Double Taxation Avoidance Agreements (DTAA). • Service & Management Fees: Charged between parent and subsidiary, provided they comply with Indian Transfer Pricing rules and arm's-length guidelines.
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