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Foreign Company Registration in India

Q: Does a foreign company need to have an Indian resident as a director?

Yes, an Indian subsidiary company must have at least one director who is a resident of India. This director must have stayed in India for a total of not less than 182 days in the previous calendar year, as per the Companies Act, 2013.

Q: What are the key tax implications for a foreign company operating in India?

Indian Subsidiaries: Taxed as domestic companies on their global income, generally at 22% (plus surcharge and cess) if specific exemptions are forgone, or a higher rate otherwise. Foreign Companies (e.g., Branch Offices): Generally taxed at 40% (plus surcharge and cess) on income accrued or received in India. Royalty and Fees for Technical Services (FTS) might have lower rates under specific agreements or DTAAs. Place of Effective Management (POEM): If a foreign company's key management decisions are made in India, it can be treated as an Indian tax resident, making its global income taxable in India from AY 2025-26, with no transitional benefits. GST, TDS, and Transfer Pricing: All foreign entities operating in India must comply with Goods and Services Tax (GST) regulations, deduct Tax Deducted at Source (TDS) on various payments, and adhere to transfer pricing norms for transactions with associated enterprises.

Q: Can a foreign company own 100% of an Indian subsidiary?

Yes, in most sectors, a foreign company can own 100% of an Indian subsidiary under India's Foreign Direct Investment (FDI) "Automatic Route," meaning no prior government approval is needed. However, certain sectors have restrictions or require government approval (e.g., defense, multi-brand retail).

Q: What is the process for repatriating profits from India?

Profits can generally be repatriated from India through various methods, provided all applicable Indian taxes and Foreign Exchange Management Act (FEMA) regulations are complied with. Common methods include: Dividend Payments: Most common and freely repatriable after deducting applicable withholding taxes. Royalty Payments: For use of intellectual property, subject to withholding tax. Fees for Technical/Consultancy Services: For services rendered by the foreign parent, subject to withholding tax. Interest on Loans: If the foreign parent provided a loan, interest can be repatriated after withholding tax. All remittances must be routed through an Authorized Dealer (AD) Bank and require proper documentation and tax clearances. Double Taxation Avoidance Agreements (DTAAs) can help reduce withholding tax rates.

Q: What is a foreign company registration number in India, and what is its format?

When a foreign company registers its place of business in India, the Registrar of Companies (RoC) issues a Foreign Company Registration Number (FCRN). This number serves as its unique identification in India. The format is typically F-XXXXXXX, where 'F' indicates a foreign company and the 'X's represent a unique seven-digit number.

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Frequently Asked Questions (FAQs)

How long does it take to register a foreign company in India?

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Registering a foreign company as an Indian subsidiary (Private Limited Company) generally takes 15-25 working days. This timeline can be longer (4-6 weeks or more) for structures like Branch or Liaison Offices, which require prior approval from the Reserve Bank of India (RBI). Delays can occur if foreign documents aren't properly attested.

Does a foreign company need to have an Indian resident as a director?

What are the key tax implications for a foreign company operating in India?

Can a foreign company own 100% of an Indian subsidiary?

What is the process for repatriating profits from India?

What is a foreign company registration number in India, and what is its format?

Why Choose RegisterKaro for the Foreign Company Registration in India?

To register a foreign company in India, follow all the rules and paperwork can be tricky. RegisterKaro makes the process simple, fast, and fully legal, so you can focus on growing your business.

Expert Guidance at Every Step: Our team helps you choose the right business structure and handles all RBI, MCA, and FEMA-related approvals smoothly.
End-to-End Documentation Support: We prepare and file all required documents, including SPICe+ forms, MoA, AoA, and FDI-related paperwork.
Quick and Compliant Registration: We ensure timely and error-free company incorporation as per Indian laws and regulations.
Post-Incorporation Services: From GST, PAN, TAN, to industry-specific licenses, we take care of all your ongoing legal needs.
Trusted by Global Clients: We’ve helped businesses from over 15 countries successfully enter the Indian market, and we’re ready to help you too.

Why Choose RegisterKaro for the Foreign Company Registration in India?

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