UK to India: questions UK companies ask

Most UK groups choose a subsidiary because dividends usually fall within the UK distribution exemption. A branch's profits sit inside the UK company's corporation tax return unless the foreign branch exemption election is made.

UK company documents come from Companies House: certificate of incorporation, articles and a current company profile. Use the exact registered name and company number on every Indian form. With India 4.5 to 5.5 hours ahead, filings and bank calls fit a UK morning.

The FCDO Legalisation Office apostilles documents for the whole UK, and e-apostilles are accepted by many Indian reviewers. Allow for the notary appointment, Companies House copy times and the FCDO turnaround.

UK executives rarely relocate full time, so an Indian resident director is the norm. Directors' duties in India are broadly familiar to UK boards, but statutory registers and Indian filings are separate obligations.

UK-side costs are usually modest: notary fees, FCDO apostille charges and certified Companies House copies.

With a single UK apostille process and English-language documents, UK paperwork is often ready within one to two weeks.

Sterling remittances are converted on receipt; allow a buffer so the rupee amount covers the shares at fair value.

Fair value for UK group reporting under FRS 102 or IFRS is a separate exercise from the FEMA certificate.

The UK treaty sets 10% on most dividends, 15% on interest (10% for banks) and 15% on royalties and technical fees. Its 90-day services test is shorter than in many treaties, so long UK visits to India need tracking.

Because most dividends are exempt in the UK, Indian withholding on them is a final cost. Royalties and fees are taxable in the UK with credit for Indian tax. HMRC certificates of residence must cover the payment date.

HMRC tests the same transaction under TIOPA 2010 Part 4. With both countries often on a 31 March year, the two transfer pricing years usually align.

The UK treaty's service PE test is 90 days, so UK specialists assigned to Indian projects can create a PE faster than under other treaties.

UK private companies file accounts at Companies House within nine months of year end, so audited Indian figures are needed early. Large groups also report under CbCR and the UK's Pillar Two rules.

Where the UK parent also closes on 31 March, the Indian audit and UK consolidation can run on one timetable, which is a real advantage over calendar-year groups.

India has no statutory redundancy scheme or TUPE equivalent of the UK kind; termination follows contracts, notice and the labour codes. UK handbooks are a useful base but need rewriting.

The India–UK Double Contributions Convention, in force since 15 July 2026, lets temporary assignees stay in UK National Insurance with a certificate of coverage. Indian salary tax still applies unless the 183-day treaty conditions are met.

The trade agreement allows intra-corporate transferees to be posted for up to three years. FRRO registration applies to stays over 180 days.

The UK has no adequacy regulation for India, so transfers use the International Data Transfer Agreement or the UK Addendum to the EU clauses.

The UK is a reciprocating territory, so money judgments of UK superior courts can be executed in India. London-seated LCIA arbitration is also common and enforceable.

The India–UK trade agreement has been in force since 15 July 2026, cutting tariffs and easing mobility, but it does not change FDI caps.

UK financial and professional services firms run large Indian centres; regulated firms also need to satisfy UK outsourcing rules for the work done in India.

The UK substantial shareholding exemption may exempt the parent's gain on selling the Indian company, while India can still tax it.