What is specific to Japanese companies
Japanese groups invest in India for the long term, often in manufacturing alongside Indian partners, and expect careful planning and documentation. Seconded managers (chuzaiin) usually run the Indian company in its early years.
What is specific to Japanese investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–Japan tax treaty: dividends 10%, interest 10%, royalties 10%.
- The India–Japan Social Security Agreement, in force since 1 October 2016, keeps seconded staff with a certificate of coverage in Japanese pension insurance for up to five years.
- Japan 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.
- The India–Japan Comprehensive Economic Partnership Agreement has been in force since 1 August 2011.
- The parent usually closes its year on 31 March; Indian companies close on 31 March.
Our services
How SU and Company helps
For Japanese 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 Japanese 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 Japanese company to set up in India?
Allow 2–4 weeks for Japanese 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 Japanese rules change often; confirm the current position before acting. Japanese law points should be confirmed with a Japanese adviser.