Question 1

Are you affiliated with the Government of India?

Accepted Answer

No. AU Corporate Private Limited (trading as AU Corporate) is an independent private professional services and business advisory firm. We are not affiliated with, operated by, or part of the Government of India, the Ministry of Corporate Affairs, or any other government authority.

Question 2

What does India market-entry advisory cover?

Accepted Answer

We help international businesses assess their India plans, compare entry structures, consider FDI and FEMA requirements, and plan tax, accounting, operations and ongoing compliance.

Question 3

How do I choose the right India entry structure?

Accepted Answer

The appropriate route depends on your sector, ownership, activities, investment approach and operating model. We help compare the practical implications of each available structure.

Question 4

What should a foreign business consider before entering India?

Accepted Answer

Key considerations include market opportunity, sector rules, foreign investment requirements, tax, accounting, employment, banking and ongoing compliance.

Question 5

Can you provide accounting and tax support after establishment?

Accepted Answer

Yes. We provide ongoing accounting, tax, payroll, FEMA reporting, transfer pricing and corporate compliance support once your India business is operational.

Question 6

Can a foreigner start a company in India?

Accepted Answer

Foreign nationals can participate in an Indian company subject to applicable company law, sectoral rules, investment routes and documentation requirements.

Question 7

Can a foreign company establish a wholly owned subsidiary?

Accepted Answer

Often, yes, where the proposed business activity permits 100% foreign investment and the relevant entry route and conditions are met. A wholly owned subsidiary is a separate Indian company whose shares are held by the foreign parent. The applicable FDI cap, approval route and investor-specific restrictions should be checked before investment. Tax treatment depends on the entity, elections made and eligibility for any concessional regime; it should be compared with the tax treatment of other permitted structures before a decision.

Question 8

Do I need an Indian resident director for my subsidiary?

Accepted Answer

An Indian company must have at least one director who meets the residence requirement under Section 149(3) of the Companies Act, 2013. The applicable test is generally based on the number of days of residence in India during the financial year, with special rules potentially applying in a company's first financial year. Confirm the current requirement and the proposed director's eligibility before appointment.

Question 9

What documents are required to register a company?

Accepted Answer

Requirements vary by structure, but for foreign directors and shareholders commonly include a passport, proof of address, a signed consent to act as director, and a board resolution authorising the Indian investment. Documents executed outside India typically need to be notarised and apostilled, and constitutional documents plus proof of a registered office are required for the Indian entity itself.

Question 10

What is a Digital Signature Certificate (DSC) and Director Identification Number (DIN)?

Accepted Answer

A DSC is required to digitally sign incorporation filings with the Ministry of Corporate Affairs, and a DIN is a unique identifier every director of an Indian company must hold. Both are obtained as part of the incorporation process, including for foreign directors.

Question 11

Can an NRI register a company in India?

Accepted Answer

Yes. NRIs can register and hold shares in an Indian company, subject to the same company law, FEMA and sectoral investment rules that apply to other participants, alongside any NRI-specific reporting requirements.

Question 12

How long does incorporation take?

Accepted Answer

There is no dependable fixed timeline for every case. Timing depends on document readiness and authentication, digital-signature and identity checks, name availability, government processing and any request for corrections. Banking, funding and some post-incorporation registrations may continue after the company is incorporated.

Question 13

How much does it cost to register a company in India?

Accepted Answer

Cost depends on the structure you choose, professional and government fees, and the scope of ongoing support you need. We provide a clear estimate once we understand your specific plans.

Question 14

What is the difference between a subsidiary and a Branch Office?

Accepted Answer

A subsidiary is a separate Indian company. A branch office is an extension of the foreign company and operates within permitted activities.

Question 15

What's the difference between a Liaison Office, Branch Office and Project Office?

Accepted Answer

A Liaison Office can only act as a communication channel for the parent company and cannot generate income in India — all costs are met through inward remittances. A Branch Office can carry out most of the parent company’s business activities and generate local revenue, but generally cannot manufacture directly. A Project Office is set up to execute a specific contract awarded to the foreign company by an Indian entity, with activities tied to that project. All three require approval from an RBI-authorised bank.

Question 16

What are the eligibility requirements for a Branch Office or Liaison Office in India?

Accepted Answer

Both require prior approval from an RBI-authorised bank, and both are judged on the parent company's track record. A Branch Office needs a profit-making record for the 5 financial years immediately before applying, plus a net worth of at least US$100,000. A Liaison Office has a lower bar — a 3-year profit-making record and a net worth of at least US$50,000 — but in exchange it can only act as a communication channel; it cannot sign contracts, invoice customers or earn any income in India. A Liaison Office's registration is also time-limited (3 years, renewable, or 2 years for NBFCs and construction/development entities), while a Branch Office has no fixed tenure. A Wholly Owned Subsidiary has no home-country track record requirement at all, which is one reason many first-time investors prefer it over a Branch Office.

Question 17

What FEMA or RBI reporting is required after receiving foreign investment?

Accepted Answer

Foreign investment can trigger RBI reporting, including Form FC-GPR after an issue of equity instruments to a non-resident, subject to the applicable rules and filing deadline. An annual Foreign Liabilities and Assets (FLA) return may also be required where the reporting criteria are met. Pricing, documentation, forms and deadlines depend on the transaction and current FEMA/RBI directions, so confirm the requirements for each investment or transfer rather than relying on a general checklist.

Question 18

Does my Indian company need GST registration?

Accepted Answer

Most companies supplying goods or services in India need GST registration, generally once turnover crosses the applicable threshold, or immediately for certain categories of supply. We assess this as part of your incorporation and compliance planning.

Question 19

What is GST and what rate will apply to my business in India?

Accepted Answer

GST (Goods and Services Tax) is India's unified indirect tax on the supply of goods and services. The applicable rate depends on the product or service classification, current rate notifications, exemptions and any special conditions. Do not assume a single standard rate applies to every supply; confirm the classification and rate for the business's actual goods or services.

Question 20

What are PAN and TAN, and why does my India entity need them?

Accepted Answer

PAN (Permanent Account Number) is the tax identification your Indian company needs for banking, tax filings and most financial transactions. TAN (Tax Deduction and Collection Account Number) is required if your company deducts or collects tax at source, such as on salaries or vendor payments. Both are obtained as part of incorporation.

Question 21

What's the difference between the FDI automatic route and the government route?

Accepted Answer

Many sectors permit foreign investment under the automatic route, but the permitted ownership level, sectoral conditions and reporting requirements vary. Some activities or investor profiles require prior Government approval. Check the current FDI policy and the rules relevant to the proposed activity and ownership chain before investing.

Question 22

Is there a minimum capital requirement to register a company in India?

Accepted Answer

No. India removed the minimum paid-up capital requirement for private limited companies in 2015, so there's no minimum amount you need to invest to incorporate. A minimum authorised share capital is still declared in the incorporation documents, but this is a formality rather than funds you need to hold upfront.

Question 23

What corporate tax rate will my India business pay?

Accepted Answer

Tax depends on the legal structure, the applicable tax regime, eligibility conditions, elections and the financial year. An Indian company may be eligible to opt for a concessional corporate tax regime if it meets the relevant conditions; a branch office and an LLP are taxed under different provisions. Compare the effective tax cost and compliance obligations for the proposed structure with a tax adviser before deciding.

Question 24

Does India offer incentives for setting up manufacturing?

Accepted Answer

India has offered incentives for selected manufacturing activities, including Production Linked Incentive (PLI) schemes and support for parts of the semiconductor value chain. Availability, application windows, eligible investment, incentive rates and conditions vary by scheme and sector. Tax concessions and benefits associated with Special Economic Zones also have specific eligibility and compliance requirements. Confirm the current scheme guidelines and application status before including an incentive in a business plan.

Question 25

Can profits be repatriated from India to a foreign parent company?

Accepted Answer

Dividends may generally be remitted to a foreign shareholder through the applicable banking and foreign-exchange process, subject to corporate approvals, tax withholding and supporting documents. Treaty relief depends on the relevant treaty article, the recipient's eligibility and the rules in force when payment is made. Confirm the current requirements with the authorised dealer bank and tax adviser.

Question 26

Does India have tax treaties that reduce withholding tax on repatriated profits?

Accepted Answer

India has tax treaties with many jurisdictions, but the rate and type of relief depend on the specific treaty, payment category, beneficial ownership, residency and anti-abuse conditions. Supporting documents may include a Tax Residency Certificate, Form 10F and a PAN, depending on the circumstances. Check the current treaty text and domestic law before applying a reduced withholding rate or choosing a holding-company jurisdiction.

Question 27

Do foreign directors need a visa to visit or work in India?

Accepted Answer

It depends on the role. Directors in an operational or remunerated position generally need an Employment Visa, while non-executive or advisory directors may only need a Business Visa. Anyone staying in India beyond the permitted period must also register with the FRRO (Foreigners Regional Registration Office).

Question 28

Can AU Corporate provide support after incorporation?

Accepted Answer

Yes. The same team can support accounting, tax, payroll, FEMA, compliance and practical business operations after setup.

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