Foreign companies can register in India as a Branch Office, Liaison Office, Project Office, or Wholly Owned Subsidiary under the Companies Act, 2013 and FEMA regulations. As of 2026, registration requires prior RBI/DPIIT approval, a registered Indian address, and apostilled foreign documents. Key costs start from ₹25,000 for an LO and ₹50,000+ for a subsidiary. Taxocity provides end-to-end foreign company registration support with 100% compliance guarantee.

• 4 entity options available for foreign companies entering India
• RBI/FEMA approval mandatory for Branch and Liaison Offices
• Incorporation of a subsidiary typically takes 15-25 working days

What Is Foreign Company Registration in India?

Foreign company registration in India is the legal process by which a company incorporated outside India establishes a formal presence within the country. Under Section 2(42) of the Companies Act, 2013, a "foreign company" is any company or body corporate incorporated outside India that either has a place of business in India (directly or through an agent) or conducts any business activity in India in any other manner.

Registering gives the foreign entity legal standing to hire employees, enter contracts, open Indian bank accounts, and repatriate profits under FEMA regulations.

Types of Foreign Company Structures in India

Before understanding requirements, it is essential to choose the right structure. Each option carries different approval authorities, tax treatments, and operational freedoms.

Structure	Approval Authority	Allowed Activities	Can Earn Revenue?	Ideal For
Liaison Office (LO)	RBI (AD-I Bank)	Market research, promotion, communication	No	Market exploration
Branch Office (BO)	RBI (AD-I Bank)	Export/import, professional services, R&D	Yes (specific sectors)	Controlled operations
Project Office (PO)	RBI (General Permission)	Specific project execution only	Yes (project-specific)	Infrastructure/EPC contracts
Wholly Owned Subsidiary (WOS)	MCA (via SPICe+)	Full business activities (as per FDI policy)	Yes (unrestricted)	Long-term India operations

For most foreign companies seeking a long-term presence in India, a Private Limited Company (Wholly Owned Subsidiary) is the most preferred route as it provides full operational freedom, clear profit repatriation rules, and eligibility for various government schemes.

Key Requirements for Foreign Company Registration

Eligibility Criteria

• The foreign parent company must be legally incorporated in its home country
• For Branch/Liaison Office: Net worth of at least USD 50,000 (profit-making track record required for BO)
• For WOS/Subsidiary: FDI must be under the automatic route or with prior government approval depending on the sector
• No prior history of adverse regulatory findings in the home country

Documents Required

All foreign documents must be apostilled (for Hague Convention countries) or notarised and attested by the Indian Embassy in the country of incorporation. Below are the standard document requirements:

Document	Notes
Certificate of Incorporation of Foreign Parent	Apostilled copy
Memorandum & Articles of Association	Apostilled and translated (if not in English)
Board Resolution	Authorising Indian entity setup and naming authorised representative
Audited Financial Statements (last 3-5 years)	Required for Branch/Liaison Office RBI application
Passport of Foreign Directors/Shareholders	Self-attested or notarised
Address Proof of Proposed Registered Office in India	NOC from owner + utility bill
PAN Application for Foreign Company	Required for tax registration; PAN for foreign company in India
DSC of Authorised Signatory	Digital Signature Certificate (Class 3) for MCA filings

Registered Office Requirement

Every foreign company registering in India must maintain a registered office address in India. This can be a commercial office space, coworking space, or even a residential address in certain cases. The address must be capable of receiving official communications and be verifiable with a utility bill and owner's NOC.

How to Register a Foreign Company in India (2026)

Process for Wholly Owned Subsidiary (WOS)

1. Obtain DSC: Procure Digital Signature Certificates for all proposed directors (including foreign directors, which requires video verification and overseas address proof)
2. Apply for DIN: Director Identification Number via SPICe+ form on MCA portal
3. Name Reservation: File RUN (Reserve Unique Name) application with MCA, choosing a name that does not conflict with existing companies
4. File SPICe+ Form: Submit incorporation form with MoA, AoA, and all apostilled foreign documents
5. PAN & TAN: Automatically issued along with the Certificate of Incorporation
6. GST Registration: Apply for GST registration once the entity is active and taxable supplies begin
7. Open Bank Account: Refer to the guide on opening a bank account for a foreign company in India

Process for Branch Office / Liaison Office

1. Prepare RBI Application: Submit Form FNC (for BO) or FNC-1 (for LO) to RBI through an Authorised Dealer Category-I bank
2. RBI Approval: Typically takes 4-8 weeks; conditional approvals are common
3. MCA Registration: File Form FC-1 with MCA within 30 days of establishing the place of business in India
4. PAN Registration: Apply for PAN immediately after RBI approval
5. GST Registration: Mandatory if taxable supplies exceed ₹20 lakh threshold (₹10 lakh for special category states) or for B2B supplies where input credit is claimed
6. Ongoing Compliance: File Annual Activity Certificate (AAC) and annual accounts with MCA every year

Tax and GST Compliance for Foreign Companies

Foreign companies operating in India are subject to multiple tax obligations under the Direct Tax Code, 2025 (applicable from FY 2026-27) and the GST Act, 2017.

Tax/Compliance	Applicable To	Key Rate / Deadline
Corporate Income Tax	Branch Office, WOS (foreign company)	40% (plus surcharge & cess) for foreign companies; 22% for domestic WOS
GST Registration	All revenue-earning entities	18% standard rate; GST for foreign companies in India
TDS Deduction	Payments to non-residents	Varies by nature; Section 115A rate is 20% + surcharge + cess for royalty/FTS
Annual Accounts (FC-3)	Foreign companies with BO/LO	Filed with MCA within 6 months of financial year end
Transfer Pricing	Entities transacting with parent/group companies	Mandatory report if related party transactions exceed ₹1 crore

Companies that benefit from a Double Taxation Avoidance Agreement (DTAA) between India and their home country may avail reduced withholding tax rates, subject to submission of a Tax Residency Certificate (TRC), Form 10F, and a No-PE Declaration. See Taxocity's guide on No-PE Declaration for DTAA in India.

FDI Restrictions and Sector Caps

India's Foreign Direct Investment (FDI) policy, regulated by DPIIT and RBI, classifies sectors under:

• Automatic Route: 100% FDI permitted without prior government approval (e.g., IT services, manufacturing, e-commerce marketplace)
• Government Approval Route: Prior FIPB/DPIIT approval required (e.g., multi-brand retail, defence above 74%, print media)
• Prohibited Sectors: FDI not permitted (e.g., lottery, gambling, chit funds, Nidhi companies)

As of 2026, India allows 100% FDI in most manufacturing, IT, and services sectors under the automatic route, making it one of the most accessible emerging economies for foreign direct investment. Checking sector-specific caps before choosing your entry structure is a mandatory first step.

Key Takeaways

1. Four main structures exist: Liaison Office, Branch Office, Project Office, and Wholly Owned Subsidiary
2. Branch and Liaison Offices require prior RBI approval through an Authorised Dealer Bank
3. All foreign documents must be apostilled or Embassy-attested before submission
4. A WOS incorporated as a Private Limited Company enjoys the most operational flexibility and lower corporate tax (22%)
5. GST registration, PAN, TAN, and TDS compliance are mandatory from day one of operations
6. Annual MCA filings (FC-3, AAC) are required to maintain legal standing
7. Sector FDI caps must be verified before choosing entry mode

Why Choose Taxocity for Foreign Company Registration?

Taxocity has been helping businesses navigate Indian regulatory requirements for over three decades. Our team of CA, CS, and legal professionals provides end-to-end support: from entity structure advisory and RBI/MCA filings to post-incorporation compliance including GST filing, transfer pricing, and annual returns.

• 100% Compliance Guarantee: We ensure every filing is accurate, timely, and fully compliant with MCA, RBI, and GST requirements
• Real Human Experts: No bots. Dedicated CA/CS assigned to your account from day one
• End-to-End Support: From initial structure advisory and apostille coordination to bank account opening and ongoing annual filings
• Trusted by 5,000+ Clients: 4.8/5 rating across verified reviews

Frequently Asked Questions

How long does foreign company registration take in India?

A Wholly Owned Subsidiary (Private Limited Company) typically takes 15-25 working days from document submission to Certificate of Incorporation. A Branch or Liaison Office takes longer due to mandatory RBI approval, which typically requires 4-8 additional weeks.

Is RBI approval mandatory for all foreign companies?

RBI approval is mandatory only for Branch Offices and Liaison Offices. A Wholly Owned Subsidiary incorporated as a Private Limited Company under the Companies Act, 2013 does not require RBI approval, provided the investment falls under the FDI automatic route for the relevant sector.

Does a foreign subsidiary need an Indian director?

Yes. Under Section 149 of the Companies Act, 2013, every Private Limited Company must have at least one director who has stayed in India for a total of not less than 182 days in the previous calendar year. Foreign companies setting up a WOS must appoint at least one resident Indian director.

Does a foreign company need a PAN in India?

Yes. A PAN (Permanent Account Number) is mandatory for any foreign entity that has a taxable presence in India, receives payments subject to TDS, or files income tax returns. See the detailed guide on PAN card for foreign companies in India.

How can a foreign company wind up its India operations?

Branch and Liaison Offices are wound up by surrendering RBI approval through the AD-I bank and filing closure documents with MCA. A WOS can be struck off voluntarily or through formal liquidation. For a detailed process, see the guide on winding up a foreign company in India.

Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or financial advice. The regulatory landscape governing foreign company registration in India is subject to change. Please consult a qualified tax advisor or company secretary before making any business structure decisions.