What is specific to German companies
German groups usually enter India with engineering-heavy operations: manufacturing, technical centres and service teams. That brings works council, function transfer and supply-chain due diligence questions on the German side that need planning alongside the Indian set-up.
What is specific to German investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–Germany tax treaty: dividends 10%, interest 10% (development-bank loans can be exempt), royalties 10%.
- The India–Germany Social Security Agreement, applied since 1 October 2009, keeps posted staff with a certificate of coverage in German schemes for up to 48 months, extendable by 12.
- Germany 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 German 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 German 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 German company to set up in India?
Allow 2–3 weeks for German 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 German rules change often; confirm the current position before acting. German law points should be confirmed with a German adviser.