FAQ Hub
India Entry FAQ
The questions foreign companies and NRIs ask us most — answered concisely, with links to the detailed guides.
In short: This hub answers the most common India entry questions across entity choice, FDI routes, timelines, cost, tax, repatriation and ongoing compliance. Follow the links for the full guides.
Entity & structure
Most inbound investors set up a wholly owned subsidiary; a joint venture or a liaison / branch / project office may fit specific cases.
Which entity should a foreign company use to enter India?
Most foreign companies use a wholly owned subsidiary (private limited company) under the automatic FDI route. A joint venture suits capped sectors or where a local partner adds value; a branch, liaison or project office suits a limited presence; an LLP suits services firms.
Can a foreign company own 100% of an Indian company?
Yes, in most sectors under the automatic route — only post-allotment FC-GPR reporting to the RBI is required. Caps apply in a few sensitive sectors.
What is the difference between a joint venture and a wholly owned subsidiary?
A wholly owned subsidiary is 100% foreign-owned with full control; a joint venture is shared with an Indian partner and governed by a shareholders' agreement — used for capped sectors or local distribution.
FDI & FEMA
Route and sector caps sit in the FDI entry routes guide.
What is the difference between the automatic and government FDI route?
Under the automatic route no prior approval is needed — you invest and report to the RBI via FC-GPR within 30 days. The government route needs prior approval through the DPIIT portal for sensitive or capped sectors.
Do foreign investors need to report their investment to the RBI?
Yes. FC-GPR must be filed within 30 days of share allotment on the FIRMS portal, and an annual FLA return is due by 15 July.
Can NRIs repatriate profits from an Indian company?
Yes, if invested on a repatriable basis via NRE funds or inward remittance. NRO-based investment is non-repatriable beyond the USD 1 million per year facility.
Timelines & cost
How long does it take a foreign company to enter India?
Incorporation via SPICe+ usually takes 7–10 working days once documents are ready; with bank account opening and FC-GPR reporting, a realistic end-to-end timeline is 4–8 weeks.
Do foreign directors or shareholders need to be in India?
No. They need not reside in India, but the company must have at least one director resident in India.
Tax & compliance
The wider post-incorporation calendar is in India post-entry support.
What is the corporate tax rate for a new company in India?
Domestic companies can opt into a concessional regime of about 22% (plus surcharge and cess), and new manufacturing companies into about 15%, subject to conditions. A foreign company's branch is taxed at the higher foreign-company rate.
What ongoing compliance does an India subsidiary need?
Monthly GST and TDS, payroll with PF/ESI, an annual statutory audit, income-tax return, ROC filings (AOC-4 and MGT-7) and the annual FLA return. See our India post-entry support guide.
NRIs & foreign individuals
See NRI business setup and LLP for foreign partners for structure-level detail.
Can an NRI or foreign national start a company in India?
Yes. NRIs and foreign nationals can be directors and shareholders, holding up to 100% where the sector permits, with at least one resident-Indian director.
Can a foreigner own 100% of an Indian company?
Yes, in sectors allowing 100% automatic FDI — which is most of them. A few regulated sectors are capped.
Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last updated: July 2026.
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