Setting Up an Indian Subsidiary for a US Industrial Automation or Robotics Company

Decide whether the Indian operation will provide engineering, sell equipment, integrate factory systems, manufacture components or support robots and software at customer sites. The activity affects FDI review, imports, product and workplace safety, service contracts, IP and tax. A subsidiary can help build a local team and contract with customers, but does not replace product, site or customer-specific checks.

Prepared by AU Corporate's CA-led advisory team · Published 13 October 2026 · General guidance; confirm current rules and project-specific requirements before acting.

1. Separate engineering, sales and deployment activities

Industrial automation businesses may provide controls engineering, PLC or SCADA work, robotics, machine vision, factory software, equipment distribution, system integration or maintenance. The local operation should define which services it performs and which products it imports or sells.

• Map revenue streams, customer types, project locations, equipment ownership and who is responsible for commissioning and after-sales support.
• Keep a written record of the decision, responsible owner and supporting documents.

2. Confirm the entity and foreign-investment position

A private limited subsidiary may fit a business that needs local employees, customer contracts, inventory or service responsibility. The correct route depends on the activity and ownership; do not assume the same analysis applies to equipment manufacturing, engineering services and trading.

• Review current FDI policy and check any sector-specific conditions before incorporation and funding.
• Keep a written record of the decision, responsible owner and supporting documents.

3. Plan equipment imports and local supply

Robots, controllers, sensors, drives, machine-vision equipment and industrial computers may have different tariff classifications and product requirements. Check customs treatment, import documentation, applicable standards, labelling and any quality-control orders for the exact product.

• Prepare a product list with technical specifications, country of origin, importer of record and local warranty or service obligations.
• Keep a written record of the decision, responsible owner and supporting documents.

4. Put project and safety responsibilities in writing

For factory deployments, contracts should define site readiness, installation, commissioning, acceptance testing, downtime, operator training, software updates, cybersecurity, maintenance and response times. Responsibility for machine safety and production outcomes should be clear and consistent with the work actually performed.

• Use project-specific scopes, acceptance criteria, change-control procedures and documented handover records.
• Keep a written record of the decision, responsible owner and supporting documents.

5. Protect software, designs and customer information

Automation projects can involve source code, control logic, CAD drawings, plant layouts, process data and confidential production information. Define pre-existing IP, newly developed deliverables, customer licences, subcontractor access and remote support. Review cross-border access and customer security requirements.

• Use appropriate IP, confidentiality and information-security clauses in employment, customer and intercompany agreements.
• Keep a written record of the decision, responsible owner and supporting documents.

6. Set pricing, tax and ongoing compliance

If the Indian entity provides engineering or support to the US parent, document the services, deliverables, costs and pricing. Review GST, withholding and transfer-pricing treatment for the actual contracts. Plan company-law filings, accounting, audit, payroll and applicable foreign-investment reporting.

• Maintain project records and intercompany invoices, and assign owners for recurring finance and corporate filings.
• Keep a written record of the decision, responsible owner and supporting documents.

Official sources to check

Use official material as the starting point and confirm that it remains current for the proposed activity. Requirements can depend on ownership, products, end use, contracts, location and changes to applicable rules.

• DPIIT / IndBiz — FDI policy information
• Directorate General of Foreign Trade
• Bureau of Indian Standards

Related guides

• India entry guide for US companies
• US engineering company subsidiary guide
• US semiconductor company subsidiary guide
• Accounting for an Indian subsidiary

For the broader incorporation route, start with our India entry guide for US companies. AU Corporate can help map the India-side entity, tax and compliance workstreams to the proposed operating model.

This article is general information, not legal, tax, regulatory or investment advice. Requirements can change; no approval, licence or incentive is guaranteed.