01What is a wholly owned subsidiary?
It is a separate Indian legal entity, usually a Private Limited company, owned entirely by the foreign parent. The subsidiary can hire, sign contracts and earn income in India, while the parent's liability is limited to its investment.
02Is 100 percent foreign ownership allowed?
In most sectors yes, under the automatic route of the FDI policy. Some sectors have caps or need government approval, so the activity must be checked first.
03Steps to set up
- Check the FDI route for your sector
- Appoint directors, with at least one resident in India
- Get Digital Signature Certificates and DINs
- Reserve the name and file SPICe+ with the MOA and AOA
- Obtain the Certificate of Incorporation, PAN and TAN
- Open the bank account and receive the foreign investment
- Report the investment to the RBI within the prescribed time
04Documents from the foreign parent
The parent's incorporation documents, board resolution and the directors' identity and address proofs usually need to be notarised and apostilled in the home country.
05Compliance after setup
- FEMA reporting of the investment (FC-GPR) and the annual FLA return
- Annual ROC filings, statutory audit and income tax return
- GST registration and returns, and transfer pricing documentation for dealings with the parent
06How long does it take?
About two to four weeks once the apostilled documents are ready, plus the time to get the documents ready abroad.
Read our foreign company setup service page, or book a consultation.
This guide is general information based on Indian law as understood in October 2026. Rules, fees and due dates change, so confirm current requirements with a qualified Chartered Accountant before you act. It is not professional advice.