India is one of the more rewarding markets to enter and one of the more procedural. The good news: for most businesses the path is well-trodden and largely on the automatic route. Here is the whole journey, from deciding the structure to your first filing with the Reserve Bank.
1. Choose the right vehicle
Most foreign companies entering India to actually do business set up a wholly-owned subsidiary — a private limited company in which the foreign parent holds up to 100% of the shares. It is treated as a domestic Indian company, can earn revenue freely, and is the structure investors and banks understand. The alternatives — a branch, liaison or project office — are narrower in what they can do and suit specific cases. We cover the trade-offs in our guide on choosing between a subsidiary, branch and liaison office.
2. Reserve the name and incorporate via SPICe+
Incorporation runs through the MCA's SPICe+ form, which bundles name reservation, incorporation, director identification numbers, PAN and TAN into a single online workflow. Name approval usually takes one to two working days, and the reserved name is valid for 20 days, within which you file the incorporation part. With documents in order, the certificate of incorporation is typically issued within 7 to 15 working days.
3. Appoint a resident director
This is the requirement foreign founders most often overlook. Every Indian company must have at least one director who has resided in India for 182 days or more in the financial year. The person does not need to be an Indian citizen — only resident. Planning for this early avoids a stall at incorporation.
4. Complete the post-incorporation setup
Once incorporated, you open the company's bank account and obtain GST registration where applicable. These steps, together with the RBI filing below, usually add three to five weeks on top of incorporation.
5. File FC-GPR after the capital comes in
When the parent funds the subsidiary by subscribing to shares, the company must report that foreign investment to the RBI by filing Form FC-GPR within 30 days of allotment, through the FIRMS portal. The filing needs a valuation of the shares by a SEBI-registered merchant banker or a chartered accountant, among other documents. This is a hard deadline with penalties for delay — we cover it in detail in our FC-GPR guide.
The short version
Set up a wholly-owned subsidiary via SPICe+ (7–15 working days), line up a resident director early, open the bank account and GST, then file FC-GPR within 30 days of the capital coming in. Most sectors need no prior approval. See India entry, FEMA & FDI services for the nature of services.
The two things foreign founders underestimate: the resident-director rule, and the 30-day FC-GPR clock that starts the moment shares are allotted.
Frequently asked questions
Yes. In most sectors, 100% foreign ownership is allowed under the automatic route, meaning no prior approval from the RBI or government is needed. A wholly-owned subsidiary is a standard structure for foreign companies entering India.
Incorporation typically takes 7 to 15 working days once documents are in order. Post-incorporation steps — bank account, FC-GPR filing and GST registration — usually add three to five weeks.
Yes. Every Indian company must have at least one director who has resided in India for 182 days or more in the financial year. The director does not need to be an Indian citizen — only resident.