What is specific to Spanish companies
Spanish groups in India are active in infrastructure, renewables and automotive components, often entering through project contracts before setting up a subsidiary.
What is specific to Spanish investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–Spain tax treaty: dividends 15%, interest 15%, 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.
- Spain 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 Spanish 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 Spanish 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 Spanish company to set up in India?
Allow 2–4 weeks for Spanish 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 Spanish rules change often; confirm the current position before acting. Spanish law points should be confirmed with a Spanish adviser.