Entering India: a foreign company's first-year roadmap
A month-by-month roadmap for a foreign company setting up an Indian subsidiary: FDI route, resident director, incorporation, capital, FC-GPR, FLA and annual compliance.
India rewards companies that arrive prepared. The rules are clear and the timelines are firm, so the best entry plans are written backwards from the deadlines.
The roadmap
- Month 0Confirm the route
Check the sector cap and whether government approval is needed. Investors from countries sharing a land border with India always need approval.
- Month 1Documents and names
Apostille the parent's documents, obtain digital signatures and reserve the company name.
- Month 1 to 2Incorporate
File SPICe+ with MoA and AoA. Receive the certificate, PAN and TAN.
- Month 2Bank and capital
Open the Indian bank account. The parent remits capital and the bank issues FIRC and KYC.
- Within 60 days of fundsAllot shares
Board allots shares to the parent and nominee.
- Within 30 days of allotmentFC-GPR
Report the investment to RBI on the FIRMS portal with a valuation certificate.
- By 15 JulyFLA return
Annual Foreign Liabilities and Assets return to RBI.
- Year endAnnual compliance
Audit, AGM, AOC-4, MGT-7, income tax and transfer pricing documentation.
Why subsidiaries face full compliance
India's small company relief, now available to private companies with up to ₹10 crore paid-up capital and ₹100 crore turnover, does not apply to holding or subsidiary companies. A foreign-owned subsidiary therefore files the full annual return and holds board meetings on the standard cycle.
Incorporation, FDI reporting and annual compliance on fixed fees.
Related services
Sources
- FEMA (Non-Debt Instruments) Rules 2019 and RBI Master Direction on Foreign Investment
- Companies Act 2013 and Companies (Registration Offices and Fees) Rules 2014
- MCA notification G.S.R. 880(E), 1 December 2025
General information only and not legal or tax advice. Figures are taken from the sources listed on the dates shown.
Common questions
How long does it take to set up an Indian subsidiary?
Commonly three to six weeks once apostilled documents are ready. Document legalisation abroad is usually the longest step.
When must FC-GPR be filed?
Within 30 days of allotting shares to the foreign investor. Shares must be allotted within 60 days of receiving the funds.
Does a foreign subsidiary need a resident director?
Yes. At least one director must stay in India for 182 days or more in the financial year.