Does a foreign parent need RBI approval to set up an Indian subsidiary?

In most sectors foreign investment is allowed under the automatic route, which needs no prior RBI or government approval. A limited list of sectors falls under the approval (government) route, where prior approval is required before the investment.

Must the subsidiary have an Indian director?

Yes. Under the Companies Act at least one director must be a person resident in India, meaning a person who stayed in India for 182 days or more in the preceding financial year.

What is Form FC-GPR and when is it filed?

Form FC-GPR reports the foreign direct investment to the Reserve Bank of India after the subsidiary allots shares to the foreign parent. It is filed on the RBI FIRMS portal within 30 days of the share allotment.

Can the subsidiary send profits back to the foreign parent?

Yes. Dividends and, on exit, sale proceeds can be repatriated to the foreign parent, subject to FEMA conditions and payment of the applicable Indian taxes and withholding.

Start Up

Indian Subsidiary Registration

Set up an Indian subsidiary so a foreign parent company can establish and operate a presence in India.

What's covered

An Indian subsidiary is an Indian company — usually a private limited company — in which a foreign parent holds a controlling stake; it is incorporated under the Companies Act 2013.
It is also subject to FEMA 1999 and the RBI's foreign-investment rules, and most sectors permit 100% foreign direct investment under the automatic route.
Foreign investment must be reported to the Reserve Bank of India in Form FC-GPR on the FIRMS/SMF portal after shares are allotted to the foreign parent.
At least one director of the subsidiary must be a person resident in India, satisfying the residency requirement under the Companies Act.

Benefits

Limited-liability corporate vehicle for a foreign parent's India operations
100% FDI permitted under the automatic route in most sectors
Separate Indian legal entity that can contract, hire and bank locally
Profits repatriable to the parent subject to FEMA and tax compliance

How we work

01
Obtain DSC and DIN; appoint a resident director
At least one director must be resident in India (present for 182 days or more); obtain the DSC and DIN for the directors — usually issued in 1–2 working days.
02
SPICe+ incorporation with the foreign shareholder
File the SPICe+ incorporation form with the apostilled or notarised documents of the foreign parent; the Certificate of Incorporation is typically issued in 12–20 working days, with PAN and TAN allotted with it.
03
RBI / FEMA reporting
File Form FC-GPR on the RBI FIRMS portal within 30 days of allotting shares to the foreign parent, reporting the foreign direct investment received.

Documents required

Incorporation documents of the foreign parent, apostilled or consularised
Passport and identity proof of the foreign directors and shareholders
KYC of the resident Indian director
Registered-office proof with a no-objection certificate from the owner
Digital Signature Certificate of the directors and the MOA / AOA particulars

Applicable laws & forms

Companies Act 2013 — governs incorporation and the resident-director requirement
FEMA 1999 and the FDI policy — govern foreign investment and the entry route
RBI FC-GPR reporting on the FIRMS / SMF portal — within 30 days of share allotment
Income-tax Act 1961 — the subsidiary is assessed at the rate applicable to companies

Frequently asked questions

Government fees

Statutory / government fee (indicative): ₹12,000

Indicative government fee · last verified 2026-06-07. Our professional charges are shared on consultation.