India entry from the UK — for British companies, founders and NRIs

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

A) UK companies setting up in India

A UK company wholly owned subsidiary in India is the usual vehicle for a British 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 UK 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 UK documents

   Board resolution, certificate of incorporation and director identity/address proofs are notarised and apostilled by the UK FCDO.

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 reduced to 10% under Article 11 of the India-UK DTAA for an eligible UK-resident beneficial owner, with a UK Tax Residency Certificate and Form 10F.

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 UK accountant (high level only): UK corporation tax, the UK Controlled Foreign Company (CFC) rules, UK transfer pricing and the UK dividend exemption on Indian dividends. Coordinate these UK-side matters with your UK accountant; this page does not give UK tax advice.

B) UK-based founders & foreign nationals

A UK 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) UK-based NRIs & OCIs

For the large British-Indian community in the UK, investing back home is a primary India-entry path — whether building a new business, expanding a family enterprise or creating an Indian operating company. 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 business setup in India and NRI investment & FEMA compliance; for personal NRI taxation, see NRI taxation at NRI Blueprint.

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

UK company vs UK founder vs UK-based NRI

UK-side items are for discussion with your UK accountant only; this page does not give UK 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 UK tax and reporting with your UK accountant.