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Entry Into India

Set up in India.
Get it right the first time.

For a foreign company evaluating India as a market, the choice isn't whether to enter — it's how. A wholly owned subsidiary, a branch office, a liaison office, or an LLP each carry different RBI approval requirements, tax treatment, and operating flexibility. Maroon Advisors helps foreign companies choose the right structure, complete the regulatory approvals, and stand up a compliant entity in India — managed end-to-end by a partner, not handed off to a junior team.

7+
Years of Cross-Border Advisory
100%
FDI Permitted in Most Sectors
2–6
Weeks to Incorporate*
Choosing a Structure

Four ways to
enter India.

Structure Best For Approval Route Tax Treatment Can Generate Revenue?
Wholly Owned Subsidiary
Most Common
 Companies planning full commercial operations — sales, manufacturing, services delivery — in India. Automatic route in most sectors (100% FDI); government approval needed for restricted sectors or land-border countries. Taxed as a domestic Indian company on its India profits; standard corporate tax rates apply. Yes — full commercial freedom, same as any Indian company.
Branch Office
 Foreign companies wanting a direct India presence for specific permitted activities without incorporating a separate entity. Requires RBI approval (via an Authorised Dealer bank); permitted activities are specifically restricted. Taxed at the higher foreign-company corporate tax rate on India-attributable profits. Limited — restricted to RBI-permitted activities (e.g., export/import, consultancy, R&D); cannot manufacture or trade generally.
Liaison Office
 Companies wanting a representative presence — market research, vendor coordination — before committing to full operations. Requires RBI approval; generally expects the parent to have a profitable track record. No independent tax liability — cannot earn income in India at all. No — cannot undertake any commercial or revenue-generating activity in India.
Limited Liability Partnership (LLP)
 Foreign companies in sectors with 100% automatic-route FDI, seeking a leaner structure than a private limited company. Automatic route only where 100% FDI is permitted without performance conditions; otherwise government approval required. Taxed as a partnership — no dividend distribution tax layer, but FDI eligibility is narrower than for a company. Yes, within sectors where LLP-route FDI is permitted.
The Process

From decision to
operational entity.

01
Structure & Sector Review
Confirm the right entity type and check sectoral FDI caps/conditions for your specific activity.
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02
Name & Incorporation
Reserve the company name, file incorporation documents with the Registrar of Companies, obtain PAN/TAN.
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03
Capital Infusion & FC-GPR
Parent company remits share capital; valuation certificate obtained; FC-GPR filed with RBI within 30 days.
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04
Registrations
GST, Shops & Establishment, PF/ESI (if hiring), and any sector-specific licenses.
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05
Bank Account & Operations
Open the operating bank account, set up accounting/payroll, and begin compliant operations.
Why Maroon Advisors

A partner who knows
both sides of the table.

01
FEMA & FDI Specialists
We handle FC-GPR filings, valuation certificates, and sectoral cap analysis routinely — not as an occasional add-on service.
02
One Point of Contact
A partner manages your entry end-to-end — incorporation, RBI filings, tax registration — rather than routing you between departments.
03
Beyond Incorporation
Once your entity exists, we continue as your ongoing accounting, payroll, secretarial, and tax compliance partner — a single relationship, not a handoff.
04
Time-Zone Aware
We work with clients across the US, UK, Singapore, and the UAE, and structure communication and deadlines around your time zone, not just ours.

Frequently asked

How long does it take to set up a subsidiary in India?
Incorporation itself — name reservation through Certificate of Incorporation — typically takes 1–2 weeks once documents are ready. Allow an additional 2–4 weeks for capital infusion, FC-GPR filing, and operational registrations (GST, bank account), so 4–6 weeks end-to-end is a realistic full timeline.
Can a foreign company own 100% of an Indian subsidiary?
Yes, in the large majority of sectors, 100% foreign ownership is permitted under the automatic route — no prior government approval is needed. A smaller set of sectors (defence, multi-brand retail, certain media) have caps or require government approval, and investment from entities in countries sharing a land border with India requires approval regardless of sector.
Do we need a local director?
Yes — every Indian private limited company must have at least one director who is a resident of India (present in India for 182+ days in the preceding financial year). We can advise on how this is typically structured, including using an Indian-resident nominee or executive director arrangement.
What's the difference between a subsidiary and a branch office for tax purposes?
A subsidiary is taxed as a domestic Indian company at standard corporate rates. A branch office is taxed at the higher rate applicable to foreign companies on its India-attributable income, and is restricted to specific RBI-permitted activities — it cannot generally trade or manufacture. Most companies planning full commercial operations choose a subsidiary for this reason.
Can a liaison office be converted into a subsidiary later?
Not directly — a liaison office cannot be "converted." Once you're ready for full operations, you would incorporate a new subsidiary and, where relevant, transition activities and contracts into it, then close the liaison office. Many companies start with a liaison office for market assessment and transition to a subsidiary within 1–2 years.
What ongoing compliance is required after incorporation?
Recurring obligations include annual financial statement filing and ROC returns, statutory audit, GST and TDS compliance, the FLA annual return (for any company with foreign investment), and — since October 2023 — potential dematerialisation requirements under Rule 9B if the company isn't a small company. We typically take this on as an ongoing retainer once the entity is operational.

Planning to enter the Indian market?

Tell us about your business and timeline, and a partner will walk you through the right structure for your specific situation — no junior-team handoffs, no generic templates.

Schedule a Consultation