India entry from Canada — for Canadian companies, founders and NRIs

Last reviewed: October 2026 · Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates.

A) Canadian companies setting up in India

A Canadian company wholly owned subsidiary in India is the usual vehicle for a Canadian business that wants to register a company in India, hire locally, invoice in rupees and hold Indian contracts. A branch, liaison or project office may suit specific activities under the applicable FEMA establishment regulations, while a joint venture shares ownership with an Indian partner. Compare subsidiary vs branch vs liaison vs project office and wholly owned subsidiary in India. A Canadian company India subsidiary keeps Indian operations in a separate legal entity while the overseas parent retains ownership.

1. 1

   Confirm sector and vehicle

   Check the FDI cap, route and investor eligibility for your activity, and choose subsidiary, branch, liaison/project office or JV.

2. 2

   Apostille Canadian documents

   Board resolution, certificate of incorporation and director identity/address proofs are notarised where required and apostilled by Global Affairs Canada or the competent provincial authority.

3. 3

   Incorporate via SPICe+

   Name reservation, DIN, PAN and TAN in one integrated MCA filing — about 7–15 working days once documents are complete.

4. 4

   Capitalise and report

   Remit share capital through banking channels, allot shares, and file FC-GPR on the RBI FIRMS portal within 30 days of share allotment; FLA is filed annually by 15 July where applicable.

5. 5

   Repatriate correctly

   Dividends attract Section 195 withholding, commonly 15% where the eligible Canadian company shareholder holds at least 10% of the shares, otherwise 25% under the India-Canada DTAA, for an eligible Canadian-resident beneficial owner with a Canadian Tax Residency Certificate and Form 10F, subject to applicable treaty and anti-abuse conditions. The Canadian company must control at least 10% of the Indian company's voting power to qualify for the 15% treaty ceiling.

Detail on dividends and Forms 15CA/15CB, where required, is in profit repatriation from India and withholding tax on foreign remittance. The Indian subsidiary may elect the 22% base corporate tax option under Section 115BAA (about 25.17% effective including surcharge and cess), subject to its conditions.

Raise with your Canadian accountant (high level only): Please coordinate Canadian corporate tax, the foreign-affiliate / FAPI rules and T1134 reporting with your Canadian accountant. This page does not give Canadian tax advice.

B) Canada-based founders & foreign nationals

A Canadian resident or foreign national can own up to 100% of an Indian company where the sector and investor eligibility rules allow. Each foreign director needs a Director Identification Number (DIN) and a Class 3 Digital Signature Certificate (DSC), supported by an apostilled passport and address proof. The company still needs one resident-Indian director under Section 149(3). Document preparation and incorporation can be coordinated remotely, with bank KYC requirements checked separately. See company formation for foreign nationals and cost and timeline to set up in India.

Estimate your India setup cost & timeline →

C) Canada-based NRIs & OCIs

Canada has a very large Indian-origin community, and Canada-based NRIs and OCIs are a primary audience for India company registration. Whether you are building a new business or expanding a family enterprise, decide whether you need to take capital and sale proceeds abroad before choosing the funding route.

NRIs and OCI cardholders can invest on a repatriable basis through NRE accounts or inward remittance under Schedule I of the FEMA (Non-debt Instruments) Rules, 2019, or on a non-repatriable basis under Schedule IV, including through NRO funds. Schedule IV investment is treated as domestic investment for FEMA purposes, so it does not require FC-GPR reporting. Dividends and sale proceeds on repatriable investments can be remitted after applicable tax. Eligible NRO balances and sale proceeds can use the USD 1 million per financial year facility, subject to tax compliance and AD-bank documentation; this is not unrestricted repatriation of the original investment.

Read NRI company registration in India and NRI investment & FEMA compliance; for personal NRI taxation, see NRI taxation at NRI Blueprint.

Canadian residents should confirm Canadian tax on Indian dividends and gains with their Canadian accountant and claim DTAA relief where available. Indian tax obligations continue to apply; the right treatment depends on your residence and investment facts.

Canadian company vs Canadian founder vs Canada-based NRI

Canadian-side items are for discussion with your Canadian accountant only; this page does not give Canadian tax advice.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance as of October 2026, not tax or legal advice on your facts; coordinate Canadian tax and reporting with your Canadian accountant.