A long-term India platform with ownership control.
Foreign companies that want a lasting India presence, and control over the Indian entity, often choose this structure.
The Indian company can operate locally, hire staff, sign local contracts, issue invoices, keep Indian books, and build an India-focused business. It may also suit overseas founders and groups supporting their activity in India.
Operate locally
Hire staff
Sign local contracts
Issue invoices
Keep Indian books
Build an India-focused business
Commonly considered for
Technology
Consulting
Manufacturing
Services
Outsourcing
Distribution
Market development
Operational support
Audience
Who is this for?
Foreign companies
Wanting ownership control of an Indian operating entity.
Overseas groups
In technology, services, manufacturing, or distribution.
Foreign founders
Building an India-focused platform.
The process
What it involves
Setup requires attention to the business activity and the foreign investment route. The parent must consider sector rules, FDI policy, FEMA, shareholding, directors, capital infusion, valuation, banking documents, and reporting. Obligations continue after incorporation once foreign capital comes in.
Eraqus Advisors supports the full journey, from reviewing the proposed activity to coordinating incorporation and aligning with FDI reporting and ongoing compliance.
01
Review the proposed activity
02
Discuss ownership and control model
03
Prepare parent documents
04
Coordinate incorporation
05
Post-incorporation support
06
FDI reporting and ongoing compliance
Before you begin
Key considerations
01
Sectoral conditions, and whether the automatic or approval route applies.
02
Shareholding, director requirements, and the capital infusion plan.
03
Valuation and banking documentation for inbound investment.
04
FDI reporting after capital is introduced.
05
Annual corporate, tax, accounting, and FEMA compliance.
Documents
Information generally required
This list is indicative. Exact requirements are confirmed case by case.
Parent company incorporation and board documents, authenticated
Identity and address proof for proposed directors and the authorised signatory
Proof of registered office address in India
Proposed shareholding pattern and business activity description
After incorporation
A scalable route that needs careful planning.
The Indian entity should support the parent’s goals while meeting Indian corporate, tax, FEMA, accounting, and reporting requirements.
Often yes, but it depends on FDI policy, sectoral caps, and conditions. Some sectors fall under the automatic route, while others need government approval or have ownership limits, so the activity should be reviewed first.
The company may have FDI reporting duties, such as share allotment reporting, plus recurring annual compliance covering accounting, audit, tax, and FLA reporting where applicable.
Foreign documents often need notarisation or apostille, depending on the jurisdiction. Eraqus Advisors reviews and coordinates this to reduce avoidable delays.
Related services
Explore further
FDI Filing
Maintaining an accurate, defensible record of foreign investment in your Indian entity.