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Thinking of expanding your U.S. business to India?
This guide explains how to incorporate a wholly owned Indian subsidiary or set up a business presence as a U.S. company—with 100% foreign ownership allowed in most sectors under India’s automatic FDI route.
Why U.S. Companies Are Expanding to India
Access a large consumer base
Cost-efficient operations (labor, R&D, and manufacturing)
Strategic global growth & outsourcing
Strong IP & legal frameworks
Types of Business Structures U.S. Companies Can Register
| Entity Type | Suitable For | FDI Allowed |
|---|---|---|
| Private Limited Company | Most popular structure for U.S. subsidiaries | ✅ Yes (100%) |
| LLP (Limited Liability Partnership) | For consulting & services | ✅ Yes (with RBI reporting) |
| Branch Office | Limited activities (e.g. liaison/sales) | ✅ Needs RBI Approval |
📋 Basic Requirements
| Requirement | Details |
|---|---|
| Shareholding | U.S. parent company can hold 100% shares |
| Directors | Minimum 2; 1 must be a resident Indian |
| Registered Office | Must have a valid Indian address |
| Capital | No minimum capital requirement |
| FDI Compliance | File Form FCGPR with RBI after investment |
🧾 Documents Required from U.S. Entity (all non indian documents to be notarised and appostilled)
Certificate of Incorporation (Apostilled)
Board Resolution authorizing India setup
Parent Company MOA & AOA (charter docs, apostilled)
ID & Address Proof of Authorized Signatory
Indian Director’s KYC (PAN, Aadhaar, Utility bill)
Registered Office Proof in India
🔁 Step-by-Step Process (10–15 Days)
1. Digital Signature Certificates (DSC)
For U.S. signatories and Indian directors
2. Name Reservation (SPICe+ Part A)
Includes “India” if part of your brand
3. File SPICe+ Part B (Form INC-32)
Includes incorporation, DIN, PAN, TAN, PF, ESIC, and bank account
4. Draft MOA & AOA (INC-33/34)
Includes foreign shareholder details
5. Obtain Certificate of Incorporation (COI)
Issued by Registrar of Companies with CIN, PAN, TAN
6. Post-Incorporation Steps
Open Indian bank account
File Form FCGPR on RBI’s FIRMS portal
Issue Share Certificates
File Form INC-20A (Commencement of Business)
🧾 Post-Setup Ongoing Compliances
Appoint statutory auditor within 30 days
Maintain ROC annual filings, Income Tax Returns
File GST, TDS, Payroll, if applicable
File Form FC-TRS if shares are transferred in future
💰 Costs & Timelines
| Item | Approx. Cost (USD) |
|---|---|
| Professional & Legal Fees | USD 1000 |
| Govt. Fees & Stamp Duty | $100 – $300 |
| Time Required | 10–15 business days |
FAQs – For U.S. Companies
.
Can a U.S. company own 100% of an Indian company?
Yes, in most sectors under the automatic FDI route.
Is physical presence in India required?
No, the process is 100% online. Documents must be apostilled in the U.S.
Do I need to appoint a local Indian director?
Yes a local Indian resident is mandatory.
Can I open a bank account before incorporation?
No. You can open the bnk account only after company is registered.
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy