Expanding your business into India can unlock massive growth opportunities. With a large consumer base, skilled workforce, and startup-friendly policies, India is an attractive destination for foreign companies.

This guide explains how to register a foreign company in India, with a clear focus on subsidiary company setup, legal requirements, tax rules, and compliance — in simple, practical terms.

What Does “Foreign Company Registration in India” Mean?

Foreign companies cannot directly operate commercial activities in India without registration. To do business legally, they must set up one of the approved structures under Indian law.

The most common and preferred option is a Subsidiary Company Registration in India.

Common Ways to Enter the Indian Market

1. Wholly Owned Subsidiary (Most Preferred)

• 100% foreign ownership allowed (in most sectors)
• Separate legal entity under Indian law
• Can carry out full commercial operations
• Eligible for funding, contracts, and hiring employees

 Best option for long-term business expansion.

Subsidiary Company Registration in India for Foreign Companies
https://thestartuplab.in/subsidiary-company-registration-in-india-for-foreign-companies/

2. Branch Office

• Extension of the foreign parent company
• Limited activities allowed
• RBI approval required
• Not suitable for startups

3. Liaison Office

• Only allowed to do market research and coordination
• No revenue generation permitted
• Temporary presence

Why Choose a Subsidiary Company in India?

A subsidiary company gives foreign businesses full control and credibility in India.

Key Benefits

• Limited liability protection
• Access to Indian customers and contracts
• Eligible for FDI and funding
• Can hire Indian employees
• Easy compliance with Indian laws

 This is why most foreign founders choose a Private Limited Company as a subsidiary.

Legal Framework Governing Foreign Company Registration

Foreign companies must comply with:

• Companies Act, 2013
• Foreign Direct Investment (FDI) Policy
• RBI & FEMA regulations

FDI Policy – DPIIT
https://dpiit.gov.in/foreign-direct-investment

Step-by-Step Process to Register a Foreign Company in India

Step 1: Check FDI Eligibility

• Confirm if 100% FDI is allowed in your sector
• Identify automatic route or approval route

Step 2: Decide the Company Structure

• Private Limited Company (most common)
• Minimum 2 directors (1 can be foreign national)
• At least 1 director must be Indian resident

Step 3: Obtain Digital Signatures & DIN

• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)

Step 4: Name Approval & Incorporation

• Apply through MCA portal (SPICe+)
• File MOA, AOA, and incorporation forms

Step 5: Open Bank Account & Capital Infusion

• Open Indian bank account
• Receive foreign investment
• File FC-GPR with RBI

Post-Registration Compliance (Very Important)

After incorporation, foreign-owned companies must follow ongoing compliance.

Mandatory Compliances

• Annual ROC filings
• Income tax returns
• GST registration (if applicable)
• FLA Filing with RBI

FLA Filings in India – Foreign Liabilities & Assets
https://thestartuplab.in/sft-filings-in-india/

Taxation of Foreign Subsidiaries in India

• Corporate tax: 22%–30% (depending on regime)
• GST applicable on services/goods
• Transfer pricing rules apply
• Withholding tax on cross-border payments

 Proper tax planning is critical from day one.

Common Mistakes Foreign Founders Make

• Ignoring FDI sector restrictions
• Missing RBI filings (FC-GPR, FLA)
• Not appointing a resident director
• Poor compliance management
• Improper shareholder agreements

How The Startup Lab Helps Foreign Companies

At The Startup Lab, we provide end-to-end support for foreign businesses entering India:

• Subsidiary company incorporation
• FDI & RBI compliance
• Bank account opening
• Accounting & ROC compliance
• Tax & regulatory advisory

We ensure your foreign company registration in India is smooth, compliant, and future-ready.

Final Thoughts

Registering a foreign company in India is not complicated — if done correctly.
Choosing the right structure, understanding FDI rules, and staying compliant can save you time, money, and legal trouble.

If India is part of your growth plan, a subsidiary company setup is the strongest foundation.