01
FOR FOREIGN COMPANIES ESTABLISHING INDIA OPERATIONS
India Entry & Foreign Co.
Market entry, entity setup, FDI and FEMA compliance, GST registration, transfer pricing, MCA filings, and labour law — coordinated end-to-end for foreign companies establishing operations in India.
01 · What we do
India entry & foreign-company setup
We set foreign companies up in India correctly the first time — the right vehicle, clean FDI and FEMA compliance, and an operating entity that can invoice, hire and bank from day one.
What we handle
- Entity selection — wholly-owned subsidiary, LLP, or branch / liaison / project office.
- Incorporation, PAN / TAN, GST registration and bank-account opening.
- FDI & FEMA — FC-GPR filing, sectoral caps and pricing guidelines.
- Transfer pricing set-up and Form 3CEB for related-party transactions.
- Ongoing compliance — ROC, corporate tax, payroll (or via our Virtual CFO desk).
References to income-tax provisions follow the Income-tax Act, 2025 (effective 1 April 2026, replacing the Income-tax Act, 1961); we cite the erstwhile section where it aids clarity.
02 · Who this is for
Client profiles
Foreign technology companies
Establishing engineering centres, R&D operations, or India-facing sales offices, typically with revenue between $1M and $50M and a 12 to 24 month deployment horizon.
Foreign service firms and consultancies
Setting up India delivery operations or in-market client servicing, including professional services firms, management consultancies, and licensed practices.
Foreign manufacturing entities
Establishing production, sourcing, or distribution operations in India, where the FDI route, sectoral caps, and approval requirements vary by activity classification.
Holding entities and family offices
Restructuring Indian investments through foreign holding vehicles, including reorganisation of existing Indian subsidiaries into preferred jurisdiction structures.
03 · How we engage
Engagement structure
01
Structuring workshop
A 2 to 4 week diagnostic covering activity scope, capital flows, IP arrangements, and the five-year operational plan. Output: option analysis memorandum with recommended structure.
02
Incorporation and registrations
MCA filings, DSC procurement, Memorandum and Articles drafting, GST and tax registrations across applicable states, AD bank coordination, and operational readiness within 4 to 8 weeks.
03
Transfer pricing setup
Benchmarking study, inter-company agreement drafting, contemporaneous documentation framework, and Form 3CEB readiness for the first annual filing cycle.
04
Ongoing compliance
Single point of accountability across MCA, Income Tax, GST, FEMA, and labour compliances. Quarterly board-readable compliance dashboards delivered to the foreign parent.
04 · Representative scenarios
Illustrative engagements
Representative scenario
US technology company establishing India engineering centre
A US-headquartered software company with $25M ARR seeks to establish an India engineering centre with 40 initial headcount, scaling to 120 over 18 months. Considerations: WOS versus Branch Office (WOS recommended for IP development), transfer pricing markup on cost-plus services (8 to 12%), Section 80JJAA tax incentive for incremental employment, and STPI registration optionality. Engagement: structuring, incorporation, GST and tax registrations across two states, IP assignment to parent, transfer pricing study, ongoing monthly compliance.
Representative scenario
Singapore parent restructuring Indian subsidiary
A Singapore holding entity with an Indian subsidiary established in 2018 needs to restructure to accommodate new investor preferences for a Cayman-Singapore-India stack. Considerations: FEMA Rule 21 valuation under the Foreign Exchange Management (Non-debt Instruments) Rules 2019, Form FC-TRS for share transfer, capital gains analysis under Section 47, and continuity of PAN and operational registrations. Engagement: structuring memorandum, valuation certification, share transfer documentation, tax position memorandum, and post-restructuring compliance.
Representative scenario
European service firm establishing Liaison Office
A European management consultancy seeks Indian presence for client liaison, with no revenue-generating activity and an 18 to 24 month evaluation period before committing to a subsidiary. Considerations: RBI approval for Liaison Office under FEMA, permitted activities perimeter (no commercial activity), Permanent Establishment risk under the India-Europe treaty, and the eventual conversion path to Branch Office or WOS. Engagement: RBI approval coordination, registration, ongoing monthly compliance, and PE risk monitoring.
05 · Frequently asked
Questions clients ask
What is the typical timeline from decision to operational entity?
For a WOS structure with two foreign directors, incorporation typically takes 4 to 6 weeks from instructions, assuming directors' documents are Apostilled. Add 2 to 3 weeks for GST registrations and bank account opening. Branch and Liaison Offices add 6 to 12 weeks for RBI approval. Project Offices can be faster, often 4 to 6 weeks end-to-end.
Can foreign directors hold Indian Director Identification Numbers?
Yes. Foreign directors require a Digital Signature Certificate (Class 3) and a Director Identification Number, both available to non-residents. Identity documents require Apostille for Hague Convention countries or consular attestation. At least one director must be ordinarily resident in India under Section 149(3) of the Companies Act.
What FDI sectoral caps apply?
Most sectors permit 100% FDI under the automatic route, including most service sectors, technology, and many manufacturing categories. Sectors with caps or approval requirements include defence, broadcasting, print media, multi-brand retail, and certain financial services. The Consolidated FDI Policy issued by the Department for Promotion of Industry and Internal Trade is the operative framework.
Does the parent need to deposit minimum capital?
There is no minimum paid-up capital requirement under the Companies Act 2013 for private limited companies. Practical capitalisation depends on the operational runway and expected losses, since under FEMA share issuance must be at or above fair market value. For Branch Offices, the parent's net worth must exceed USD 100,000.
What is the difference between WOS and LLP for foreign companies?
A Wholly Owned Subsidiary is a private limited company structure offering corporate veil protection, standard equity-based capital structure, and unrestricted scope subject to FDI policy. An LLP offers pass-through partnership taxation but is restricted to sectors permitting 100% FDI on the automatic route and is generally less preferred by institutional investors. For foreign companies with growth ambitions, WOS is typically recommended.
How does Advisory Monks coordinate across India and the foreign parent?
We operate as a single point of accountability for the Indian compliance footprint, reporting to a designated contact at the foreign parent through structured monthly or quarterly compliance dashboards. The parent's CFO or general counsel sees the same statutory calendar, compliance status, and financial figures that the Indian board sees.
“We engaged Shamik's team to establish a private limited company and were highly pleased with the prompt, effective responses to every query. Professional, dependable and commendable.”
Speak with a partner
Tell us about your facts. We will respond with a structured approach.
Each engagement begins with a structured workshop covering your specific facts, timeline, and constraints. We respond with an option analysis and indicative fee within five working days of the initial discussion.