What is specific to French companies
French groups in India are often large industrial, aerospace or luxury businesses with established compliance programmes. Sapin II and the duty of vigilance extend into the Indian company, alongside Indian law.
What is specific to French investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–France tax treaty: dividends 10%, interest 10%, royalties 10%.
- The India–France social security agreement, in force since 2009, keeps detached employees with a certificate of coverage in the French system for a limited period.
- France 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.
- India and the EU concluded negotiations on a free trade agreement on 27 January 2026; it still needs signature and ratification and does not change FDI rules.
- The parent usually closes its year on 31 December; Indian companies close on 31 March.
Our services
How SU and Company helps
For French 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 French company hold all the shares of its Indian company?
Yes. Full foreign ownership is allowed without prior approval in most sectors, subject to any sector cap.
How long does it take a French company to set up in India?
Allow 2–3 weeks for French 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 French rules change often; confirm the current position before acting. French law points should be confirmed with a French adviser.