What is specific to Chinese companies
Chinese investment in India runs through Press Note 3: prior Government approval for any investment with a Chinese beneficial owner, plus security clearance for Chinese directors. Plans are built around that process.
What is specific to Chinese investors
- Press Note 3 requires prior Government approval for any investment by a Chinese entity or one with a Chinese beneficial owner, and Chinese directors need security clearance.
- India–China tax treaty: dividends 10%, interest 10%, royalties 10%.
- India has no social security agreement in force with this country, so a foreign national posted to India generally contributes to Indian provident fund as an international worker on full salary.
- China is not on India's reciprocating-territory list, so its court decrees cannot be executed in India as they stand; the winning party has to sue again in India on the foreign judgment.
- There is no India–China trade agreement; goods face standard Indian tariffs and trade remedies.
- The parent usually closes its year on 31 December; Indian companies close on 31 March.
Our services
How SU and Company helps
For Chinese companies we act as the Indian firm of Chartered Accountants from the first board decision onwards.
- Entity and FDI route advice
- Incorporation of the subsidiary, or branch, liaison or project office approvals
- FEMA and RBI reporting for every inflow and outflow
- Accounting, tax, GST and transfer pricing
- Payroll and expatriate tax
- Company secretarial and annual filings
Questions
May a Chinese company hold all the shares of its Indian company?
Yes, subject to prior Government approval under Press Note 3, which applies to Chinese investors, and to any sector cap.
How long does it take a Chinese company to set up in India?
Allow 3–6 weeks for Chinese documents, then about two to three weeks for incorporation, with the bank account usually the slowest step. Most groups are operating within two to three months.
General information as at 5 November 2026, not advice for a particular case. Indian and Chinese rules change often; confirm the current position before acting. Chinese law points should be confirmed with a Chinese adviser.