🌏 Foreign Subsidiary Advisory — TAXAJ
WOS · Branch Office · FEMA · RBI · FC-GPR · Annual Compliances
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Foreign Subsidiary
Setup Cost Estimator
WOS · Branch · Liaison · Project Office in India
Calculate the complete cost to set up your India presence — Wholly Owned Subsidiary, Branch Office, Liaison Office, or Project Office. Includes company registration, RBI/FEMA approvals, FC-GPR filing, virtual office, compliance setup, and Year-1 running cost. TAXAJ is India's trusted FEMA specialist for foreign companies entering India.
Select Structure & Calculate Complete India Setup Cost
Select your preferred India entry structure, parent company country, sector, and size. The estimator produces a complete itemised cost breakdown — government fees, FEMA/RBI filings, professional fees, office setup, and first-year compliance budget.
🌏 Foreign Subsidiary / India Entry Cost Estimator
WOS · Branch Office · Liaison Office · Project Office · FEMA · RBI · Companies Act · FDI Policy 2025
| Cost Component | Details | Estimated Cost (₹) | Notes |
|---|
🌏 TAXAJ is India's trusted FEMA specialist — WOS incorporation, Branch/Liaison office RBI approvals, FC-GPR/FLA filings, transfer pricing, and ongoing annual compliance for 50+ foreign companies.
⚠️ Cost estimates are indicative for 2025. Actual costs depend on sector, state of registration, investment amount, and professional firm engaged. Government fees change periodically. FDI policy is subject to change — verify at dpiit.gov.in and rbi.org.in.
WOS vs Branch Office vs Liaison Office vs Project Office — Which is Right?
| Feature | 🏢 WOS (Pvt Ltd) | 🏦 Branch Office | 🤝 Liaison Office | 🏗️ Project Office |
|---|---|---|---|---|
| Separate legal entity | ✅ Yes | ❌ Extension of parent | ❌ Extension of parent | ❌ Extension of parent |
| Can earn revenue in India | ✅ Yes — full operations | ✅ Yes — limited to parent's activity | ❌ No — market research only | ✅ Only for specific contract |
| Can hire employees | ✅ Yes | ✅ Yes | ✅ Yes (limited) | ✅ For project only |
| RBI / FEMA Approval | FC-GPR after allotment (30 days) | RBI AD Bank approval required | RBI AD Bank approval required | AD Bank intimation within 2 months |
| Tax Status | Indian company — taxed in India | Foreign company — taxed as branch | Not taxable (no income) | Foreign company — project income taxed |
| Profit Repatriation | ✅ Dividend after tax | ✅ After tax remittance | N/A (no income) | ✅ After tax |
| FDI Sectors Allowed | All sectors as per FDI policy | Limited sectors (manufacturing, IT, professional services) | All sectors (no income activity) | Infrastructure projects only |
| Annual Compliance | Full MCA + Income Tax + FEMA | Income Tax + FEMA + BO annual return | Income Tax (NIL) + FEMA + LO return | Income Tax (project) + FEMA |
| Best for | Long-term India operations, building Indian business | Trading/manufacturing with same parent activity | Market research before committing | Specific govt/infra contract execution |
| Typical Setup Cost | ₹40,000 – ₹1,50,000 | ₹80,000 – ₹2,00,000 | ₹60,000 – ₹1,50,000 | ₹50,000 – ₹1,50,000 |
Step-by-Step: Setting Up a WOS in India (2025)
Name Reservation + DSC
Reserve company name via MCA RUN portal. Obtain Class-3 DSC for foreign director (requires notarised + apostilled passport). Select registered office (virtual office acceptable).
⏱ 3–7 daysIncorporate via SPICe+
File SPICe+ with MOA, AOA, subscriber sheet (from foreign parent, apostilled). At least one Indian resident director required under Section 149(3). PAN + TAN allotted automatically.
⏱ 7–15 daysFDI Inflow + FC-GPR Filing
Parent remits initial investment via banking channels with FIRC (Foreign Inward Remittance Certificate). File FC-GPR (Form for reporting FDI) with RBI via AD Bank within 30 days of share allotment.
⏱ 15–30 daysINC-20A + Bank Account + PAN
File INC-20A (commencement of business) within 180 days. Open current bank account. Apply for GST registration if turnover expected above ₹20L. Appoint statutory auditor (ADT-1).
⏱ 30–60 daysKey FEMA Filings Every Foreign Subsidiary Must Know
📋 FC-GPR — FDI Reporting within 30 Days
Form FC-GPR (Foreign Currency — Gross Provisional Return) must be filed with RBI through the AD (Authorised Dealer) bank within 30 days of allotment of shares to the foreign investor. Delay attracts compounding under FEMA 1999. Details: number of shares allotted, price per share, amount received, FIRC number, beneficiary country. TAXAJ prepares and tracks FC-GPR filings for all WOS clients, ensuring zero delay from allotment date.
📊 FLA Return — Annual FEMA Filing by July 15
FLA (Foreign Liabilities and Assets) Return must be filed annually by July 15 with RBI by all Indian companies that have received FDI or made overseas investment. It captures: FDI received, outstanding FDI liabilities, overseas assets held. Failure to file: penalty under FEMA — up to 3× the amount involved or ₹2 lakh (whichever is higher). TAXAJ files FLA returns for all foreign subsidiary clients as part of the annual compliance package.
💱 Transfer Pricing — Arms' Length Compliance
Any transaction between the Indian subsidiary and the foreign parent (services, royalties, loans, goods) must be at arms' length price under Section 92 of the Income Tax Act. If aggregate international transactions exceed ₹1 crore, an Accountant's Report (Form 3CEB) from a Chartered Accountant must be filed with the ITR. Transfer Pricing Officer (TPO) scrutiny is common for subsidiaries of large MNCs. TAXAJ provides complete TP documentation, benchmarking analysis, and advance pricing arrangement (APA) advisory.
🏢 Director Requirements for Indian WOS
Every Indian Private Limited Company must have at least one director resident in India (stayed in India for 182+ days in the preceding calendar year) under Section 149(3) of Companies Act 2013. For a foreign WOS: common approach is (1) hire an Indian Country Manager as director, (2) use a Professional Nominee Director service (TAXAJ provides this at ₹15,000–25,000/year), or (3) relocate a parent company employee to India. All directors need DIN and Class-3 DSC. Foreign directors: passport must be notarised + apostilled.
💰 Profit Repatriation — Dividend & Royalty
WOS can repatriate profits to parent as: (1) Dividends — declared after paying Indian corporate tax (22% or 15% for new manufacturing). Dividend Distribution Tax (DDT) was abolished in 2020 — dividends are now taxed in the hands of the recipient (parent). (2) Royalties / Technical fees — subject to 20% withholding TDS + applicable DTAA benefit. (3) Loan repayment — if parent gave ECB (External Commercial Borrowing). All outward remittances require Form 15CA/15CB and bank reporting under FEMA.
🌐 Virtual Office for Registered Address
The registered office of the Indian WOS must be a physical address in India (as per Section 12). A virtual office is a valid registered office address — it provides a physical mailing address, document receipt, and NOC from the building owner. Cost: ₹2,000–8,000 per month depending on city and provider. Important: TAXAJ arranges compliant virtual office addresses in Delhi, Bangalore, Mumbai, Goa, and Bihar with proper NOC for MCA/GST filings. Avoid cheap virtual offices that cannot provide legitimate NOC — MCA rejects registrations with insufficient address proof.
Foreign Subsidiary in India — Frequently Asked Questions
More FEMA & India Entry Tools at TAXAJ
India Entry by TAXAJ — FEMA Specialists
TAXAJ has assisted 50+ foreign companies set up WOS, Branch Offices, and Liaison Offices in India. Complete service: incorporation, RBI/FEMA approvals, FC-GPR, virtual office, annual compliance, and CFO support. Offices in Delhi, Bangalore, Mumbai, Goa & Bihar.