Business Setup & Startup Advisory
End-to-end support for founders - from business setup in India to foreign subsidiary formation and registration, through to founder advisory and fund raising.
We support startups end to end, from business setup in India and foreign subsidiary registration through to founder advisory and fund raising. Whatever stage your venture is at, our role is to handle the regulatory and financial groundwork so you can focus on building.
Our Services
From business setup in India - whether by a resident founder or a foreign parent - to the first feasibility study, support across every stage of the startup journey.
Business Setup in India
End-to-end incorporation support whether you're a resident founder starting your own venture, or an overseas parent company - across Singapore, the US, UAE, UK, and beyond - setting up a subsidiary in India.
For Resident Founders
- Entity structuring advice - Private Limited Company vs. LLP vs. One Person Company (OPC) vs. Partnership Firm, matched to your fundraising plans and compliance appetite
- Name approval & incorporation - RUN application and SPICe+ filing for Private Limited Companies and OPCs, LLP-RUN and FiLLiP filing for LLPs, or Partnership Deed drafting and registration with the Registrar of Firms for partnership firms, matched to the entity chosen above
For Foreign Parent Companies
- Entity structuring advice - Majority-Owned Subsidiary vs. Wholly Owned Subsidiary vs. Joint Venture vs. LLP vs. Branch/Liaison Office, matched to the parent's objectives
- Name approval & incorporation - RUN application and SPICe+ filing for a subsidiary Private Limited Company, LLP-RUN and FiLLiP filing for an LLP, or Form FNC filing with RBI for a Branch/Liaison Office, matched to the entity chosen above
- Board composition guidance - meeting the resident director requirement under Section 149(3), a check foreign-parent formations most commonly miss
For Every Formation
- Directors, partners & core registrations - DSC/DIN for directors or designated partners, drafting of MOA/AOA or the LLP Agreement, along with application for PAN, TAN, EPF & ESI
- Post-incorporation registrations - Bank account opening, GST, and Startup India registration with application for tax exemption under DPIIT (where applicable), along with other applicable state government registrations such as Shops and Establishment
- Post-incorporation compliance calendar setup
Once the entity is formed, ongoing compliance is handled across our other service lines - FEMA & RBI reporting and dematerialisation of securities under Corporate Laws & Compliance (for foreign-parent entities), transfer pricing and international tax advisory under Taxation, and payroll administration under Accounting & Business Support.
Formation by Parent Country
The core process stays the same under the Companies Act, 2013 - what changes by jurisdiction is the DTAA position, funding route nuances, and the questions parent-company finance teams usually raise first.
Several requirements apply uniformly regardless of the parent's country: FC-GPR filing with RBI on receipt of foreign investment, the resident director requirement under Section 149(3) (at least one board member with 182+ days' stay in India in the previous calendar year), and GST under reverse charge on intercompany service fees and management charges paid to any foreign parent.
Singapore Companies Setting Up a Subsidiary in India
Singapore is a common jurisdiction for structuring investment into India, given its DTAA position and established holding-company framework. The Indian entity is still formed the same way - a Private Limited Company under the Companies Act, 2013.
- No Controlled Foreign Company (CFC) regime in Singapore - unlike the US or UK, profits retained in the Indian subsidiary aren't automatically attributed back to the Singapore parent for tax purposes
- Heightened GAAR scrutiny - GAAR under Chapter X-A can apply to any structure, but Singapore-routed holding entities face closer examination given the jurisdiction's history as a preferred conduit for investment into India
- Grandfathered capital gains treatment under the 2016 India-Singapore DTAA amendment, for shares acquired before 1 April 2017 - relevant where the Singapore entity holds legacy investments in Indian group companies
US Companies Setting Up a Subsidiary in India
A US parent - typically a Delaware C-Corp or similar entity - most commonly sets up its Indian subsidiary as a wholly-owned Private Limited Company. FDI from the US falls under the automatic route in most sectors, so no prior RBI or government approval is needed before incorporation.
- India-US DTAA position on royalty, technical fee, and management fee remittances back to the US parent
- Check-the-box election - many US parents elect to treat the Indian subsidiary as a disregarded entity or partnership for US tax purposes under the entity classification rules, affecting how its income flows into the US parent's tax return
US GILTI, Subpart F, and other US-side tax positions are outside our scope and need coordination with the parent company's US tax advisor - we handle the Indian entity's compliance end.
UAE Companies Setting Up a Subsidiary in India
A UAE parent - whether a mainland LLC or a free zone entity - most commonly sets up its Indian subsidiary as a wholly-owned Private Limited Company under the Companies Act, 2013, with FDI from the UAE permitted under the automatic route in most sectors.
- India-UAE DTAA and CEPA position on royalty, technical fee, and management fee remittances back to the UAE parent
- Free zone vs. 100% foreign-owned mainland LLC - since the UAE's move away from mandatory local sponsorship, the parent's chosen structure affects how beneficial ownership is disclosed for Significant Beneficial Owner (SBO) reporting on the Indian subsidiary
- UAE's 9% corporate tax, in force since June 2023, is now a factor in group transfer pricing and profit-repatriation planning between the Indian subsidiary and its UAE parent - a consideration that didn't previously apply
UK Companies Setting Up a Subsidiary in India
A UK Ltd parent forming an Indian subsidiary follows the same Private Limited incorporation route, with FDI from the UK also permitted under the automatic route in most sectors.
- India-UK DTAA treatment of withholding tax on royalty and technical fee remittances to the UK parent
- Group financial reporting alignment - UK parents commonly need the Indian subsidiary's statutory financials restated to a UK-compatible reporting standard (FRS 102/IFRS) for year-end group consolidation
UK CFC rules under Part 9A TIOPA 2010, Diverted Profits Tax, and other UK-side tax positions are outside our scope and need coordination with the parent company's UK tax advisor - we handle the Indian entity's compliance end.
Feasibility Studies & Financial Projections
Thorough feasibility studies, project reports, and financial projections that give founders a clear-eyed view before committing.
Founder Advisory
Direct, practical guidance from our team on the operational and financial decisions that come with running a startup - helping you think through strategy, navigate challenges as they arise, and stay grounded as you compete and grow.
Startup Ecosystem Access
Introductions and referrals drawn from our professional network - other founders, investors, and service providers - so you have the right people to turn to as your venture grows.
Advice on Fund Raising
Expert guidance on funding options, helping you secure the capital you need to fuel your growth plans.
Ongoing tax compliance for your startup - return filing, assessments, and registrations - is handled under Taxation. For hands-on support structuring and executing a funding round, see Transaction Advisory.
Frequently Asked Questions
Common questions from founders and finance teams on business setup, foreign subsidiary formation, and startup advisory in India.
FAQ 01
Can only foreign companies invest in an Indian entity, or can individuals invest too?
No, foreign investment isn't limited to corporate entities. Individuals can invest too, including:
- NRIs - Non-Resident Indians
- OCIs - Overseas Citizens of India
- Other foreign nationals
All of them invest under the same FDI policy, sectoral caps, and reporting requirements - such as FC-GPR - that apply to corporate investors.
FAQ 02
Is 100% shareholding required for a foreign parent's Indian subsidiary, or can it be lower?
No, 100% isn't mandatory, and there's no minimum floor either - a foreign company can hold any percentage, including a minority stake. What changes is how the Indian entity gets classified:
- Above 50%, or board control - legally a "subsidiary" under Section 2(87)
- 20-50% - legally an "associate company" under Section 2(6)
- Below 20% - a plain minority-owned investee company, no special classification
FDI up to 100% is permitted under the automatic route in most sectors, and the percentage chosen ultimately depends on the parent's objectives, such as bringing in a local JV partner or minority Indian shareholders. A handful of sectors carry lower FDI caps, so the permissible ceiling should be checked sector-wise.
FAQ 03
Can a foreign company set up an LLP, partnership, or proprietorship in India instead of a Private Limited Company?
It depends on the entity type:
- LLP - Yes, 100% FDI is permitted under the automatic route, but only in sectors and activities where 100% FDI is already allowed automatically with no FDI-linked performance conditions attached
- Partnership firm - No, foreign companies and foreign nationals generally cannot invest in these at all
- Proprietorship concern - No, the same restriction applies
That route is reserved for NRIs and OCIs instead - see the next question for the specific terms.
FAQ 04
Can NRIs invest in an Indian LLP or partnership firm?
Yes, with some conditions:
- LLPs - NRIs/OCIs can invest under the automatic route, in the same eligible sectors as any other foreign investor
- Existing partnership firm or proprietary concern - Can join as a partner, but only on a non-repatriation basis, via inward remittance or their NRE/NRO/FCNR(B) account, and not where the firm is engaged in agricultural/plantation activity, print media, or real estate trading
- Starting a brand-new firm, or investing on a repatriation basis - Needs specific prior RBI approval either way
FAQ 05
What is the resident director requirement for a foreign-owned Indian subsidiary?
Under Section 149(3) of the Companies Act, 2013, every company - including one wholly owned by a foreign parent - 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.
FAQ 06
Is GST applicable on management fees charged by a foreign parent to its Indian subsidiary?
Yes, intercompany service fees and management charges between a foreign parent and its Indian subsidiary typically attract GST under reverse charge, in addition to being subject to transfer pricing documentation and benchmarking requirements.
FAQ 07
Why do Singapore-based holding companies commonly invest into India?
Singapore's DTAA with India and its established holding-company framework make it a common jurisdiction for structuring investment into Indian subsidiaries, though genuine commercial substance is necessary to access treaty benefits, and Singapore-routed structures face closer GAAR scrutiny than most.
FAQ 08
Can a US company set up a wholly-owned subsidiary in India?
Yes. A US parent company can set up a wholly-owned subsidiary in India as a Private Limited Company under the Companies Act, 2013, with 100% FDI permitted under the automatic route in most sectors. The subsidiary needs at least one director who is a resident in India under Section 149(3).
FAQ 09
Can a UAE company set up a subsidiary in India?
Yes. A UAE parent - whether a mainland LLC or a free zone entity - can set up an Indian subsidiary as a Private Limited Company under the Companies Act, 2013, with FDI from the UAE permitted under the automatic route in most sectors. Accessing treaty benefits under the India-UAE DTAA and CEPA requires genuine commercial substance in the UAE, not just registration there.
FAQ 10
Does a UK parent company need RBI approval to invest in an Indian subsidiary?
In most sectors, no prior RBI approval is required - FDI from the UK falls under the automatic route, and the investment is reported to RBI via Form FC-GPR after the shares are allotted.