Pick the right structure, clear the FDI route, incorporate remotely, and stay compliant, guided by cross-border specialists who have set up 2,000+ companies in India for foreign investors. Start with the free tools below, or book a free consultation.
Four decision tools built by our corporate & FEMA lawyers, no sign-up. No other Indian firm offers a single one.
Your sector + investor country → automatic vs government approval, the cap %, and a Press Note 3 land-border flag.
Try it below ↓Answer a few questions → WOS, LLP, Branch, Liaison, Project Office, JV or GIFT City, with tax & repatriation.
Try it below ↓Structure + where your documents come from → an honest, week-by-week timeline from name reservation to a live bank account.
Try it below ↓Incorporation date + structure → a personalised ROC / RBI / tax / GST calendar you can export.
Try it below ↓Pick your sector and where the investment ultimately comes from. Everything below reflects the FDI policy as amended by Press Note 1 & 2 of 2026, where most competitor pages are years out of date.
For direct equity investment into an Indian company. Instant, indicative, confirm with counsel before you file.
Answer a few questions, we'll recommend the right vehicle, its tax and repatriation, and what to rule out and why. It's the structure matrix our lawyers use, made interactive.
Across WOS, LLP, Branch, Liaison, Project Office, Joint Venture and GIFT City.
An honest, week-by-week timeline for a foreign-owned setup, apostille, resident director and FEMA filings and all. In ranges, because the truth is a range.
A realistic, week-by-week timeline for a foreign-owned setup.
Enter your incorporation date and structure, we'll generate the ROC, RBI, tax and GST deadlines a foreign-owned entity must hit, with real dates you can export to your calendar.
Companies Act, FEMA, Income-tax & GST obligations for year one.
India is the world's fastest-growing major economy and, since 2026, one of its most open to foreign investors, with 100% foreign ownership in most sectors and a wave of reforms aimed squarely at inbound investment.
Most sectors take 100% FDI on the automatic route, with no local partner and no prior approval. Insurance joined the 100% list in 2026.
A 1.4-billion-person market, deep English-speaking talent, and the world's largest hub for Global Capability Centres and IT services.
Press Note 2 eased the China / land-border rule, the tax on foreign companies fell to 35%, and a new Income-tax Act simplifies the regime.
Your first decision when you set up a business in India. Here is the same matrix our lawyers use: ownership, whether it can earn income, the effective tax rate, and how you get money out.
| Structure | 100% foreign? | Earns income? | Effective tax | Repatriation | Best for |
|---|---|---|---|---|---|
| WOS (Pvt Ltd) | Yes* | Yes | ≈25.17% | Dividends (WHT/DTAA) | Default operating company |
| Joint Venture | No, local partner | Yes | ≈25.17% | Dividends | Capped / regulated sectors |
| LLP | Yes* | Yes | ≈34.94% | Profit share tax-free | Services in fully-open sectors |
| Liaison Office | Parent | No | Nil | N/A | Market exploration |
| Branch Office | Parent | Yes (limited) | ≈38.22% | Post-tax, free | Revenue without a subsidiary |
| Project Office | Parent | Project only | ≈38.22% | On completion | One-off EPC / turnkey |
| GIFT City IFSC | Yes | Yes | 0% holiday / 9% MAT | FX, incentivised | Financial-services hub |
| SEZ Unit | Yes | Yes (exports) | Holiday (legacy) / 25.17% | Export earnings | Export manufacturing / IT |
*Subject to the sector's FDI cap and route. Use the Entry-Structure Selector above for a recommendation tailored to your plan.
Most sectors take 100% foreign investment with no prior approval, you invest and report. Others are capped, need government approval, or are closed. The Checker above is live; here's the map.
No prior approval. Invest, allot shares, and file Form FC-GPR within 30 days on RBI's FIRMS portal. The default for most manufacturing, IT, services, single-brand retail, marketplaces, telecom and (from 2026) insurance.
Prior approval via the Foreign Investment Facilitation Portal (fifp.gov.in) → the concerned ministry, typically ~8–12 weeks. Applies to capped/sensitive sectors (multi-brand retail, print & digital news media, defence >74%, banking >49%).
| Sector | Cap | Route |
|---|---|---|
| Manufacturing · IT / software · services | 100% | Automatic |
| Single-brand retail | 100% | Automatic |
| E-commerce, marketplace | 100% | Automatic |
| Insurance (cos & intermediaries) (new 2026) | 100% | Automatic |
| Telecom · greenfield pharma · construction-dev | 100% | Automatic |
| Defence | 100% | ≤74% Auto >74% Govt |
| Private-sector banking | 74% | ≤49% Auto Govt |
| Multi-brand retail | 51% | Government |
| Print & digital media (news) | 26% | Government |
| E-commerce, inventory-based | 0% | Prohibited |
| Lottery · gambling · chit funds · tobacco · atomic energy · railway ops | 0% | Prohibited |
Investment from a land-bordering country (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar or Afghanistan), or from Hong Kong or Macau (treated as part of China), needed prior government approval under Press Note 3 (2020). Press Note 2 of 2026 eased this: a non-controlling stake of ≤10% beneficial ownership can now use the automatic route (with reporting), while controlling investments still need approval. Pakistan remains the strictest. The FDI Checker flags this automatically.
Incorporation is fully online through the MCA V3 portal. You never need to visit India. Here's the critical path for a foreign-owned subsidiary.
For each director/subscriber, foreign nationals via apostilled passport + video verification.
Reserve the company name (valid 20 days).
Directors, capital, registered office & objects, DIN is allotted here for up to 3 directors.
A foreign corporate subscriber attaches physically-signed, apostilled/consularised copies.
Bundled EPFO, ESIC, bank account, professional tax (and optional GST).
Auto-issued with the CoI, you're now a company.
Remit the subscription capital, then file FC-GPR within 30 days of allotment.
File within 180 days, you can't start trading or borrow until it's in.
2 directors, at least one resident in India (present ≥182 days in the financial year).
2 shareholders, a nominal second share is common for a 100%-owned subsidiary.
No minimum capital, fund the company with whatever your business actually needs.
A registered office in India, plus apostilled/consularised parent documents.
Use the Setup Timeline Estimator above to map your critical path and the Compliance-Calendar Generator for your post-incorporation deadlines.
Structure drives your tax bill by ~13 points, and repatriation is where a good structure pays for itself.
Domestic company under s.115BAA, no MAT. The lowest effective rate and the reason most investors pick a subsidiary.
Foreign-company rate (base cut from 40% to 35% in 2024). No dividend layer, but ~13 points higher than a subsidiary.
Flat rate, but the profit share is tax-free in partners' hands, so there's no second dividend tax on the way out.
Dividend Distribution Tax was abolished in 2020, dividends are taxed in the shareholder's hands, with withholding reduced by treaty (US ~15%, UK ~10–15%, Singapore ~10%, Netherlands ~10% after the Nestlé ruling). Every remittance needs Form 15CA/15CB (renamed Form 145/146 under the Income-tax Act 2025). A branch remits post-tax profit freely; the equalisation levy has been fully abolished. Treaty relief needs a TRC + Form 10F and real substance (watch GAAR).
The route into India looks different depending on your home jurisdiction, documents, treaty rates and approvals all vary.
India's #1 FDI source. A ~10% dividend treaty rate and a popular holding jurisdiction, but expect substance/GAAR scrutiny. Documents are apostilled.
A fast-growing corridor, strong for trading and holding structures. Non-Hague for India, documents need consular legalisation, not apostille.
100% ownership in most sectors; ~15% dividend treaty rate. Watch Permanent-Establishment risk if US staff operate in India (the 2025 Hyatt Supreme Court ruling on fixed-place PE).
100% ownership; ~10–15% dividend treaty rate. Documents are apostilled under the Hague Convention, usually the fastest authentication route.
Press Note 3 land-border rule: controlling stakes need government approval; ≤10% eased under Press Note 2 of 2026. Documents need consular legalisation (apostille not accepted).
We advise investors from 97 countries. Tell us your corridor and we'll map the route, treaty position and document path.
Most DIY and template setups repeat the same errors, on the details that matter most. Here is what to get right when you set up a business in India as a foreigner.
The rule is 182 days in the financial year, not the calendar year (changed in 2018). Many filing agents still quote the old test and appoint a director who does not actually qualify.
Old guides still quote a 43.68% branch rate. The real effective rate for a foreign company is ~36–38% after the 2024 cut, and a subsidiary pays ~25%. Choosing a structure on the wrong number is expensive.
A home-working employee or a dependent agent in India can create a taxable presence for the foreign parent. The 2025 Hyatt Supreme Court ruling widened fixed-place PE exposure, so plan the structure before you hire.
Investment linked to China and other land-border countries needs government approval above a 10% controlling stake, even through a Singapore or Hong Kong vehicle. Our FDI Checker flags it for you.
A new company cannot start trading or borrow until it files INC-20A within 180 days of incorporation. Miss it and penalties accrue and the company can be struck off, an easy deadline to overlook once setup is done.
The RBI FLA return is due every 15 July while foreign shares sit on the books, even with zero activity. Miss it and penalties accrue quietly.
A full-service Indian law firm that has set up 2,000+ companies, with the judgment a registration website can't offer.
9 offices and a 97-country network, one team from market entry through to exit.
Structure, FDI/FEMA, incorporation, tax, employment, IP, compliance and disputes under one roof.
Press Note 2 of 2026, 100% insurance FDI, the new Income-tax Act, the Labour Codes, built into our advice, not years out of date.
The 25 questions foreign investors actually ask, answered accurately and current to 2026.
Deep-dive guides from our corporate, FDI, tax and employment teams. Free to read, and kept current as the law changes.
Tell us your plan and where you are based. We will map the right structure, the FDI route and the timeline, and handle it end-to-end, with 2,000+ setups behind us.