What is specific to Hong Kong companies
Hong Kong investors are treated with China under India's land-border rules, so Press Note 3 approval is the first item on any plan, whatever the ownership looks like.
What is specific to Hong Kong investors
- Prior Government approval under Press Note 3 is expected for Hong Kong-registered investors, and citizens of land-border countries on the board need security clearance.
- India–Hong Kong tax treaty: dividends 5%, 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.
- Hong Kong appears on India's list of reciprocating territories (s.44A, civil procedure code): a money decree from one of its superior courts can be put into execution in an Indian district court, unless a statutory ground for refusal applies.
- There is no India–Hong Kong trade agreement, and goods keep their country of origin when routed through Hong Kong.
- The parent usually closes its year on 31 March or 31 December; Indian companies close on 31 March.
Our services
How SU and Company helps
For Hong Kong 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 Hong Kong company hold all the shares of its Indian company?
Yes, subject to prior Government approval under Press Note 3, which applies to Hong Kong investors, and to any sector cap.
How long does it take a Hong Kong company to set up in India?
Allow 1–3 weeks for Hong Kong 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 Hong Kong rules change often; confirm the current position before acting. Hong Kong law points should be confirmed with a Hong Kong adviser.