Question 1

How much does it cost to set up a subsidiary company in India?

Accepted Answer

For most US/European companies, the first-year total typically ranges from USD 2,500–3,800 (₹2.2–3.1 lakh), including one-time incorporation and the first year of compliance and maintenance.

Question 2

What is the cost to register (incorporate) a company in India for a foreign parent?

Accepted Answer

Typical one-time incorporation cost is about USD 1,200–1,600 (₹1–1.3 lakh), covering government fees, digital signatures, drafting, filings, and PAN/TAN/GST registrations.

Question 3

What are the annual compliance costs for an Indian subsidiary?

Accepted Answer

Annual maintenance (bookkeeping, GST/TDS/IT filings, statutory audit, ROC filings, and payroll/HR compliance) is usually USD 1,300–2,200 (₹1.1–1.8 lakh) per year.

Question 4

Do I need a resident director in India and how much does it cost?

Accepted Answer

Yes—Indian law requires at least one resident director. Typical resident director service fees are USD 300–420 (₹25,000–35,000) per year.

Question 5

Is a virtual office address required and what does it cost?

Accepted Answer

A local address is required for incorporation and GST. A virtual office typically costs USD 120–240 (₹10,000–20,000) per year and is acceptable for regulatory purposes.

Question 6

What documents are required from the foreign parent company and directors?

Accepted Answer

Parent company: Certificate of Incorporation, charter documents, board resolution, and KYC. Directors: notarized/apostilled ID/address proofs, passport, and photographs. Requirements vary slightly by jurisdiction and RoC.

Question 7

How long does it take to register a subsidiary in India?

Accepted Answer

Once documents are ready, incorporation generally completes within 10–15 working days, depending on RoC workload and validation timelines.

Question 8

Is there a minimum capital to start a subsidiary company in India?

Accepted Answer

No statutory minimum paid-up capital is required. Most foreign parents begin with a practical capital level aligned to projected expenses.

Question 9

Can a US or European company own 100% of an Indian subsidiary?

Accepted Answer

Yes—most sectors allow 100% foreign ownership under the automatic route. A few sectors have caps or require government approval under FEMA/FDI policy.

Question 10

Are there extra RBI/FEMA compliances and do they add to cost?

Accepted Answer

Yes—initial FDI reporting (e.g., FC-GPR via FIRMS), annual filings, and any share allotments must be reported. Professional assistance for FEMA/RBI filings is typically included or quoted separately depending on complexity.

Question 11

What taxes apply to an Indian subsidiary and do they affect ongoing costs?

Accepted Answer

Corporate income tax, GST (if applicable), TDS obligations, and payroll taxes apply. While taxes are not 'service fees', they do drive ongoing compliance workload and thus maintenance costs.

Question 12

What is the difference in cost between a branch office and a subsidiary?

Accepted Answer

Branch offices require RBI approval, have narrower permitted activities, and similar ongoing compliance costs. Subsidiaries (private limited companies) are generally faster on the 'automatic' FDI route and more flexible for operations.

Question 13

Are there any hidden or one-off costs I should budget for?

Accepted Answer

Possible add-ons include additional director DSCs, sectoral approvals, share capital infusion/valuation support, FEMA event-based filings, transfer pricing documentation, and state registrations depending on location.

Question 14

Do the quoted costs change with the number of directors or authorized capital?

Accepted Answer

Government fees scale with authorized capital and minor add-ons apply for extra directors, shareholders, or apostille/legalization needs. Your final quote depends on your structure.

Question 15

Can you provide a fixed quote in USD for budgeting?

Accepted Answer

Yes—we provide a USD (and INR) itemized proposal covering incorporation, resident director, virtual office, and annual compliance so US/EU teams can budget accurately.

Question 16

How can I get a customized estimate for my India entry?

Accepted Answer

Contact BusinessSetup.in with your parent jurisdiction, planned headcount, and activities. We’ll share a tailored USD/INR quote and a step-by-step timeline for your subsidiary.

Services	Monthly services for up to 20 employees	Monthly Services 20-50 employees	Monthly Services 50-100 employees
Bookkeeping and Accounting Book-keeping and general ledger management Accounting and reporting Preparing year-end financial statements	USD 450/month	USD 800/month	USD 1200/month
Monthly Tax Compliances Estimation of quarterly advance income-tax liability and payment of taxes Withholding tax advice Quarterly Withholding tax returns Monthly GST returns
Monthly Payroll Online payroll system with all the functionalities Monthly payroll run Issue of salary slips Tax calculation Answering employees questions
Yearly services
Statutory Audit	USD 750/annum	USD 1000/annum	USD 1500/annum
Secretarial Compliances	USD 500/annum	USD 500/annum	USD 1000/annum
Annual Income Tax Filing	USD 250/annum	USD 750/annum	USD 1250/annum
GST Audit (only if turnover exceeds Rs 2 Crores per annum)		USD 750/annum	USD 1250/annum
FLA	USD 150/annum	USD 150/annum	USD 150/annum
Form 61 for incometax	USD 150/annum	USD 150/nnum	USD 150/annum
Transfer Pricing Study Report and filing		USD 750/annum	USD 1000/annum
Total Yearly	1800/annum	3500/annum	6300/annum

Pricing

What are the costs involved in setting up a subsidiary in India?

Cost for Compliances for subsidiary companies

Why Choose BusinessSetup.in?

What are the costs involved in setting up a subsidiary in India?

Cost for Compliances for subsidiary companies

Why Choose BusinessSetup.in?

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