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The Classic Partners LLP · Company Registration

Indian Subsidiary Registration

Incorporating a wholly owned or majority-owned Indian subsidiary of a foreign parent company, with the FDI route, valuation and RBI reporting handled correctly from the first inward remittance.

Quick answer

A foreign company can set up an Indian subsidiary as a private limited company under the Companies Act, 2013, receiving foreign investment either under the automatic route or, for restricted sectors, with prior government approval under the Foreign Exchange Management Act (FEMA). Once shares are allotted against the foreign remittance, the subsidiary must report the investment to the Reserve Bank of India through Form FC-GPR within the prescribed time limit.

What we cover

What our Indian subsidiary registration service covers

Incorporation plus the FEMA reporting most foreign parents underestimate.

  • Advising on FDI eligibility, sectoral caps and whether the automatic route or government approval route applies
  • Incorporating the subsidiary as a private limited company with the foreign parent as majority or sole shareholder
  • Coordinating share valuation by a registered valuer as required for pricing the shares issued to the foreign investor
  • Assisting with opening the subsidiary's bank account and receiving the inward remittance through an Authorised Dealer bank
  • Filing Form FC-GPR with the Reserve Bank of India within the prescribed period after share allotment
  • Setting up ongoing FEMA, transfer pricing and annual ROC compliance for the subsidiary
Key components

What decides whether the subsidiary is compliant from day one

The FEMA and RBI steps that sit outside normal incorporation.

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FDI Route

Confirming whether the sector allows one hundred percent foreign investment under the automatic route or requires prior approval from the relevant government department.

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Share Valuation

Pricing shares issued to the foreign investor using a method recognised under FEMA, backed by a valuation certificate from a registered valuer or chartered accountant.

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Inward Remittance

Routing the foreign investment through an Authorised Dealer bank with the correct purpose code, since misrouted remittances complicate reporting later.

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FC-GPR Filing

Reporting the share allotment to the RBI through the Foreign Investment Reporting and Management System (FIRMS) within the statutory time limit.

How we work

Our process

From initial consultation to completion.

1

FDI & Structure Review

Confirming sectoral FDI limits, choosing between a private limited company and other permissible structures.

2

Incorporation

Incorporating the Indian entity with the foreign parent as shareholder, using apostilled or notarised parent company documents.

3

Remittance & Valuation

Receiving the inward remittance and completing the share valuation before allotment.

4

RBI Reporting

Filing Form FC-GPR and setting up the ongoing FEMA and annual compliance calendar.

Why choose us

Why FEMA reporting gets missed by foreign parents

What sets our approach apart.

Apostille and notarisation timelines are longer than expected

Parent company documents executed abroad often need apostille or Indian consulate attestation, which routinely takes longer than the incorporation itself if not started early.

A missed FC-GPR deadline invites RBI compounding

Late reporting of share allotment against foreign investment requires filing a compounding application with the RBI, which is an avoidable cost and delay.

Transfer pricing exposure starts from the first related-party transaction

Once the subsidiary starts billing or receiving services from the foreign parent, transfer pricing documentation requirements apply and are best planned before the first invoice, not after.

FAQs

Indian Subsidiary Registration questions answered

What people ask before engaging us.

Yes, in most sectors one hundred percent foreign direct investment is permitted under the automatic route, though certain sectors carry caps or require prior government approval.
Form FC-GPR is the report filed with the Reserve Bank of India through the FIRMS portal after a subsidiary allots shares against foreign investment; it must be filed within thirty days of the date of share allotment.
Yes, shares issued to a foreign investor must be priced in accordance with a valuation method recognised under FEMA, supported by a certificate from a registered valuer, a merchant banker, or a chartered accountant as applicable.
Yes, profits can be repatriated as dividends after payment of applicable taxes, subject to the subsidiary's compliance with FEMA and the provisions of any applicable Double Taxation Avoidance Agreement.

Setting up your Indian subsidiary?

We handle incorporation, valuation coordination and RBI/FEMA reporting so the first remittance is compliant.

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