Incorporating in India — The Right Entity, Set Up Right, From Day One
The most expensive decision in an India entry is made first and reviewed never: the choice of entity. Structure determines your tax rate, repatriation options, liability exposure, and how cleanly you can exit — and restructuring later costs multiples of structuring correctly now.
A2 Consultants treats incorporation as a strategy decision, not a filing service. We match the entity to your business model, then execute the setup completely — registrations, bank accounts, and the compliance calendar that follows.
Entity choice in India is a set of one-way doors. A liaison office cannot earn revenue and never converts gracefully into one that can. A branch pays tax at rates well above a subsidiary's. An LLP restricts foreign investment in ways that surprise investors at the next funding round. Each structure is excellent for what it is designed for and expensive for everything else — which is why the analysis must precede the paperwork.
Foreign founders also underestimate the second half of incorporation. India grants the certificate quickly; what takes discipline is everything that makes the entity operational and compliant — the FEMA reporting on initial capital, the tax registrations, the first board processes, the commencement filing. Entities that skip steps here carry defects that surface at their first audit or first funding round.
Who we serve
Foreign corporations establishing wholly owned subsidiaries; joint ventures between foreign and Indian partners; funds creating investment holding structures; foreign startups relocating or expanding operations; and companies converting liaison or project offices into permanent presence.
The outcomes we deliver
- An entity structure — WOS, LLP, branch, liaison, or project office — matched to your tax, control, and exit objectives.
- Incorporation completed with every registration in place: PAN, TAN, GST, IEC, and state registrations as required.
- Capitalisation structured for FEMA compliance and future funding flexibility.
- No compliance debt: statutory calendars, registers, and first filings established from inception.
- Governance designed for distance: board composition, authorised signatories, and delegation frameworks that let a foreign parent control an Indian entity practically, not just legally.
How we work
- Advise. Entity comparison across tax, liability, repatriation, and wind-down dimensions.
- Incorporate. Name reservation, charter documents, DIN/DSC, and MCA filings executed end to end.
- Activate. Bank account, tax registrations, and FEMA reporting for initial capital.
- Sustain. Secretarial support and a compliance calendar owned by one accountable team.
Why A2 Consultants
Twenty-plus years of India-entry work means we have seen every structure succeed and fail — our advice starts from your fifth year, not your first form. Our incorporation clients typically remain compliance clients for a decade — the strongest evidence that what we set up works.
Frequently asked questions
Should a foreign company choose a subsidiary, branch office, or LLP in India?
A private limited subsidiary is the default for operating businesses: full activity freedom, 100% foreign ownership in most sectors, and the lowest corporate tax rates. Branch offices suit narrow use cases — they are taxed at foreign-company rates near 35% and restricted in permitted activities. LLPs offer compliance simplicity but constrain FDI conditions and external fundraising. Liaison offices cannot earn income at all. We compare structures against your five-year intentions, not your first-year convenience.
How long does it take to incorporate a company in India from abroad?
The MCA process itself runs two to four weeks once documents are ready: name approval, digital signatures, charter documents, and the consolidated SPICe+ filing that bundles PAN, TAN, and key registrations. The realistic timeline for foreign shareholders is six to ten weeks end-to-end, driven mostly by document legalisation — notarisation and apostille of parent-company papers — and bank account opening. Parallelising these workstreams is where experienced advisors save you a month.
Do we need an Indian resident director or local shareholder?
Every Indian company needs at least one director who has stayed in India 182 days in the year — a residency test, not a citizenship one. No local shareholder is required: foreign persons can hold 100% of shares in permitted sectors, with nominee arrangements for the second shareholder a private company needs. We help clients meet the resident-director requirement through trusted professional arrangements with properly documented, limited mandates.
What does it cost to maintain an Indian subsidiary each year?
For a small operating subsidiary, budget for statutory audit, ROC filings, income tax and GST compliance, secretarial maintenance, and registered office costs — a predictable annual envelope that professional management keeps modest relative to the entity's value. The costs worth fearing are the other kind: penalties, compounding, and remediation from neglected compliance, which routinely exceed a decade of doing it properly. An entity is inexpensive to maintain and expensive to rescue.
Deciding how to enter India? Request an entity-structure comparison specific to your business model.