Chartered Accountants◆Practising since 2016

Australia to India · Structure

Choosing an Indian entity for a Australian parent

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A private limited subsidiary suits almost every Australian business that will hire, sell or contract in India. A branch or liaison office needs approval through an authorised dealer bank and only suits a defined role; an LLP is limited to sectors open to 100% foreign investment under the automatic route.

What is specific to Australian companies

A branch's Indian profits may be non-assessable in Australia under the foreign branch rules, but most groups still prefer a subsidiary for liability and flexibility.

How the Australian side affects the choice

Dividends from a 10% holding are generally non-assessable non-exempt income for an Australian company.

Our services

How SU and Company helps

We compare the options against the Australian parent's plans and give a written recommendation before any filing.

  • Activity and FDI route check
  • Tax comparison of subsidiary and branch
  • Eligibility check for branch or liaison office approval
  • Joint venture shareholding and FEMA pricing points

Questions

Is a branch office a good option for a Australian company?

Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.

General information as at 5 November 2026, not advice for a particular case. Indian and Australian rules change often; confirm the current position before acting. Australian law points should be confirmed with a Australian adviser.

Queries

Send the firm a query

Tell us briefly what you need. A member of the team will get back to you.

We use your details only to respond to your query. See our privacy policy.

Call