India Market Entry Services for French Companies

India offers significant opportunities for French companies seeking to expand into new consumer markets, develop manufacturing operations, establish engineering and technology centres, and diversify international supply chains. French businesses already maintain a substantial presence in India across aerospace, defence, industrial engineering, transport, healthcare, energy, consumer goods, technology and professional services.

The India–France economic relationship gained additional momentum in 2026, when both countries elevated their relationship to a Special Global Strategic Partnership and inaugurated the India–France Year of Innovation. The conclusion of EU–India Free Trade Agreement negotiations and the signing of an amending protocol to the India–France tax treaty also create important considerations for French businesses planning Indian operations.

However, India market entry for French companies requires careful planning beyond company incorporation. Investors must assess Indian company law, Foreign Direct Investment (FDI) regulations, FEMA and RBI reporting, banking, corporate taxation, transfer pricing, employment compliance, the India–France Double Taxation Avoidance Convention and relevant industry regulations.

EzyBiz India Consulting LLP provides integrated India Market Entry Consulting Services for French companies planning to establish, invest, manufacture, trade or operate in India. Our Chartered Accountant-led team supports entity selection, company incorporation, foreign investment, banking coordination, international taxation, GST, transfer pricing, payroll, accounting and continuing regulatory compliance.

We assist French multinational groups, SMEs, mid-cap companies, industrial manufacturers, technology businesses, investment holding companies and service providers evaluating an appropriate India entry structure.

1. India–France Strategic and Economic Partnership

India–France Special Global Strategic Partnership

India and France established their Strategic Partnership in 1998 and have progressively strengthened cooperation across defence, space, civil nuclear energy, technology, cyber security, climate action, infrastructure, research and economic development.

During the official visit of French President Emmanuel Macron to India from 17 to 19 February 2026, both governments agreed to elevate the relationship to a Special Global Strategic Partnership.

The expanded partnership builds on the India–France Horizon 2047 Roadmap and supports closer cooperation in investment, research, innovation, industrial development and strategic technologies.

Official details are available in the India–France Joint Statement of February 2026.

2026 India–France Year of Innovation

India and France jointly inaugurated the 2026 India–France Year of Innovation on 17 February 2026.

The initiative encourages cooperation between French and Indian businesses, universities, research institutions, startups and technology ecosystems.

Relevant areas include artificial intelligence, digital technologies, health, industrial innovation, advanced manufacturing, research, cybersecurity and emerging technologies.

French companies establishing engineering centres, software development operations, research facilities or technology partnerships in India may find opportunities arising from this cooperation.

Established French Business Presence in India

France has an established business presence in India across industrial, engineering, technology, financial and consumer sectors.

According to published information from France Diplomatie, more than 540 French subsidiaries operate in India, together employing approximately 300,000 people.

This existing commercial ecosystem is relevant for French suppliers, SMEs and specialist service providers seeking proximity to international customers and industrial partners.

The French Ministry for Europe and Foreign Affairs provides information concerning France’s relationship with India.

2. Why French Companies Are Expanding into India

Access to Indian Industrial and Consumer Markets

India provides opportunities for French businesses supplying industrial equipment, automotive products, engineering services, aerospace components, medical technology, digital solutions, pharmaceuticals, consumer products and professional services.

Depending on the commercial objective, a French company may establish a wholly owned subsidiary, enter into a joint venture or initially operate through an eligible commercial partnership.

Our Business Setup Services in India provide guidance for foreign companies planning long-term operations.

Manufacturing, Engineering and Supply-Chain Expansion

French manufacturers may evaluate India for industrial production, component sourcing, product assembly, engineering, testing, procurement and export-oriented operations.

Location and investment decisions should consider suppliers, customers, industrial clusters, logistics, product certification, factory permissions, environmental requirements and applicable state incentives.

French manufacturers planning production facilities can review our Manufacturing Setup Services in India.

Technology, Research and Global Capability Centres

French multinational enterprises may establish technology, engineering, research, finance, analytics and shared-service operations in India.

Global Capability Centres can support group activities, including software development, engineering design, finance operations, technical assistance and research.

These arrangements require appropriate inter-company agreements, transfer-pricing documentation, employment structures and intellectual-property arrangements.

Explore our Global Capability Centre Setup in India services.

3. EU–India Free Trade Agreement and French Businesses

EU–India FTA Negotiations Concluded in January 2026

The European Union and India concluded negotiations for a Free Trade Agreement on 27 January 2026.

As France is a European Union Member State, the proposed agreement is relevant to French exporters, manufacturers, industrial suppliers and businesses involved in EU–India trade.

However, the conclusion of negotiations does not itself make preferential tariff concessions legally available.

The agreement must complete the applicable European Union and Indian legal procedures, including necessary approval, signature and ratification steps, before entering into force.

French companies should monitor the European Commission’s India trade information for the official agreement status.

Future Customs Benefits and Rules of Origin

Once legally effective, the EU–India FTA is expected to improve market access and reduce tariffs on specified categories of goods traded between India and the European Union.

The actual benefit for a French exporter will depend on the product’s tariff classification, concession schedule, origin requirements, customs documentation and applicable implementation dates.

French companies should not apply anticipated preferential rates before the agreement enters into force and the relevant provisions become effective.

Importing machinery, industrial products, electronics or other goods into India may also involve applicable Indian Standards, product approvals and import regulations independently of the FTA.

4. India Entry Structures Available to French Companies

Wholly Owned Subsidiary in India

A French parent company may establish an Indian private limited company as a wholly owned subsidiary where 100% foreign investment is permitted for its intended activities.

The Indian subsidiary is a separate legal entity and may conduct permitted commercial activities, enter contracts, employ personnel, maintain bank accounts and invoice Indian or overseas customers.

An Indian private limited company ordinarily requires at least two members and two directors. Where a French group intends complete beneficial ownership, a legally appropriate nominee shareholding arrangement may be considered to satisfy the statutory membership requirement.

At least one director must satisfy the applicable Indian resident-director requirement.

Our Wholly Owned Subsidiary Registration Services support foreign-owned company establishment.

Joint Venture with an Indian Partner

A French business may establish a joint venture with an Indian partner where the partner contributes distribution, licences, local manufacturing capacity, customer relationships, technology or specialist market knowledge.

The shareholders’ agreement should address ownership, capital contribution, governance, reserved matters, intellectual property, technology transfer, dividend rights, dispute resolution and exit provisions.

Our Joint Venture Registration Services cover the corporate and regulatory aspects of joint venture establishment.

Branch Office, Liaison Office and Project Office

French companies may also evaluate a Branch Office, Liaison Office or Project Office, subject to the applicable FEMA and RBI framework.

A Branch Office may undertake specified permitted activities. A Liaison Office is generally restricted to representative functions and cannot carry out ordinary revenue-generating commercial activity in India.

A Project Office may be relevant for French companies executing eligible engineering, construction, transport, infrastructure or other project-specific contracts.

These offices are extensions of the French parent rather than separately incorporated Indian companies.

5. Choosing the Appropriate India Entry Structure

Wholly Owned Subsidiary versus Joint Venture

A wholly owned subsidiary generally provides greater ownership and management control.

A joint venture may be commercially attractive when an Indian partner contributes valuable infrastructure, established customer relationships or industry-specific capabilities.

The decision should consider FDI eligibility, financing, governance, ownership of technology, operational control and future expansion plans.

Subsidiary versus Branch or Liaison Office

A subsidiary may be more appropriate for a French business intending substantial manufacturing, independent trading, service delivery or long-term employment activities.

Branch and Liaison Offices have distinct restrictions on activities, taxation, foreign-exchange compliance and liability.

India entry structure	Typical purpose	Separate Indian company?
Wholly Owned Subsidiary	Long-term commercial operations	Yes
Joint Venture	Business with an Indian strategic partner	Generally yes, if incorporated
Branch Office	Specified permitted activities	No
Liaison Office	Representation and coordination	No
Project Office	Execution of eligible Indian projects	No

French Parent Company: SAS, SASU, SARL or SA

French companies may operate through different legal forms, including Société par Actions Simplifiée (SAS), Société par Actions Simplifiée Unipersonnelle (SASU), Société à Responsabilité Limitée (SARL) and Société Anonyme (SA).

The appropriate Indian documentation depends on the French entity’s legal form, constitutional provisions, authorised representatives, ownership structure and corporate approval requirements.

The powers of the Président, gérant, directors or other authorised signatories should be confirmed from the applicable corporate records before executing Indian incorporation documentation.

French parent companies should also consider the implications of their internal governance and ownership structure for Indian banking and foreign-investment reporting.

6. Documents Required from French Parent Companies

Extrait Kbis, Statuts and Corporate Resolutions

The documentation required from a French shareholder depends on its legal form and proposed Indian investment structure.

Common requirements may include:

• Recent Extrait Kbis or other acceptable French registration evidence;
• Statuts or constitutional documents;
• registered-office particulars;
• corporate resolution approving the Indian investment;
• resolution authorising share subscription;
• power of attorney or authorised signatory documentation;
• shareholder or ownership information;
• corporate ownership chart; and
• ultimate beneficial ownership information, where applicable.

The Extrait Kbis is a recognised commercial-register extract evidencing important legal particulars of a French registered company.

The Infogreffe website provides information relating to French commercial registration records.

Apostille, English Translation and Individual KYC

French directors and individual shareholders may be required to provide passports, residential-address evidence, photographs, contact details and statutory declarations.

France and India participate in the Hague Apostille framework. French documents used for Indian corporate filings may require appropriate certification, notarisation or apostille under the applicable MCA requirements.

Where corporate records are issued in French, an appropriate English translation may be required for incorporation, banking and regulatory purposes.

France’s apostille arrangements should be reviewed with the relevant competent authorities. Information is available through Service-Public.fr and the Hague Conference on Private International Law.

7. Step-by-Step French Company Registration in India

Step 1: Evaluate Proposed Activities and FDI Eligibility

Determine the products or services, target customers, proposed capital investment, Indian management structure, expected workforce and location.

Review applicable FDI restrictions, ownership conditions, sectoral licences and government approval requirements before selecting the entry structure.

Step 2: Prepare French Documents and Incorporate the Indian Company

Obtain the necessary French corporate records, resolutions, director documents, shareholder information and authenticated incorporation documentation.

Indian incorporation typically involves Digital Signature Certificates, name reservation, Memorandum and Articles of Association, subscriber and director information, registered-office evidence, SPICe+ and relevant linked MCA forms.

After successful processing, the company receives its Certificate of Incorporation and applicable statutory identification details, including PAN and TAN.

EzyBiz provides Foreign Company Registration Services in India.

Step 3: Banking, Share Subscription and Operational Setup

After incorporation, the Indian company completes corporate banking procedures, receives foreign investment through permitted banking channels, issues shares and completes applicable foreign-investment reporting.

GST registration, Importer Exporter Code, employment registrations, payroll, accounting, factory permissions and other operational approvals should be addressed according to the specific business activities.

8. FDI, FEMA and RBI Compliance for French Investment

Automatic Route and Government Approval Requirements

India permits 100% foreign investment under the automatic route in many business activities, subject to applicable sector-specific restrictions and conditions.

Other sectors or transactions may involve investment caps, licensing conditions or government approval.

Relevant policy information is available through the Department for Promotion of Industry and Internal Trade.

Beneficial Ownership of French and International Groups

The immediate French shareholder may not be the only investor level relevant to Indian foreign-investment compliance.

Where a French company is owned through holding entities, investment funds or shareholders in multiple jurisdictions, the complete beneficial ownership and control chain should be reviewed.

Such review is particularly relevant where applicable Indian FDI approval requirements depend on upstream investor ownership or control.

Foreign Capital, FC-GPR and Annual FLA Reporting

Foreign equity capital should be received through permitted banking channels, supported by proper remittance and investor KYC documentation.

Where an Indian company issues equity instruments qualifying as foreign direct investment, Form FC-GPR is generally required within 30 days from the date of issue of those instruments.

Annual Foreign Liabilities and Assets reporting, generally due by 15 July where applicable, may also be required.

Additional FEMA reporting may arise for subsequent capital infusions, share transfers, downstream investments or corporate restructuring.

EzyBiz provides FEMA and RBI Advisory Services.

9. Corporate Banking and Funding Indian Operations

Indian Bank Account and French Parent KYC

Indian banks generally require identification and verification of the Indian company, French parent, directors, authorised signatories, controlling shareholders and ultimate beneficial owners.

Documents may include a recent Kbis, constitutional records, ownership chart, business profile, source-of-funds information and authenticated corporate approvals.

Bank onboarding should be planned alongside incorporation, rather than only after the Indian company has been formed.

Equity Investment, Inter-Company Loans and Working Capital

A French group may finance its Indian operations through permitted equity investments and other eligible financing arrangements.

Any inter-company loan requires separate consideration under applicable debt, external commercial borrowing, corporate law and tax rules.

A practical funding plan should cover incorporation expenditure, capital assets, salaries, initial losses, supplier payments and anticipated working capital.

10. India–France DTAA, 2026 Protocol and Transfer Pricing

India–France DTAA and February 2026 Amending Protocol

India and France have a Double Taxation Avoidance Convention relevant to cross-border taxation and the allocation of taxing rights between the two countries.

In February 2026, India and France signed an amending protocol to update their existing tax convention.

According to the Indian Ministry of Finance, the protocol addresses matters including taxation of capital gains from shares, dividend income, fees for technical services, permanent establishment provisions, exchange of information and removal of the earlier Most-Favoured-Nation clause.

The protocol’s provisions do not automatically become effective merely because the agreement has been signed. The applicable internal procedures and effective-date provisions must be satisfied.

French businesses should confirm which treaty provisions are legally effective for the relevant transaction and financial year before calculating withholding taxes or claiming treaty benefits.

Official information is available in the Ministry of Finance announcement on the India–France DTAA protocol.

Permanent Establishment, Transfer Pricing and Profit Repatriation

French companies operating in India without an incorporated subsidiary should consider whether their employees, premises, agents, services or project activities create a Permanent Establishment under applicable Indian law and the operative India–France treaty provisions.

The February 2026 amending protocol includes revised provisions relevant to Permanent Establishment, including service-related activities, subject to the protocol’s entry into effect.

International transactions between an Indian subsidiary and its French parent or other associated enterprises must be reviewed under India’s transfer-pricing rules.

Examples include imports and exports of goods, management services, engineering support, software, technical assistance, royalties, financing and group cost allocations.

Where applicable, transfer-pricing documentation and Form 3CEB reporting may be required.

Dividend distributions, royalties, fees and other legitimate inter-company payments should also be evaluated for Indian withholding tax, treaty eligibility, company-law and FEMA requirements.

Our Transfer Pricing Advisory Services support international transaction compliance. Additional assistance is available through our International Tax Advisory Services.

11. Employment, French Expatriates and Social Security

Local Hiring, Secondments and Indian Payroll

A French-owned Indian subsidiary may employ local personnel subject to applicable employment laws, payroll withholding, provident fund, employee state insurance, professional tax and other statutory requirements.

French nationals assigned to India should evaluate the appropriate immigration status, income-tax residency, compensation arrangements, secondment terms and payroll obligations before beginning work.

Employment contracts and secondment agreements should specify the responsible employer, salary payment arrangements, benefits and assignment conditions.

India–France Social Security Agreement and Certificate of Coverage

The India–France Social Security Agreement entered into force on 1 July 2011.

The agreement can be relevant for eligible employees temporarily assigned between India and France and may help avoid duplicate social-security contributions under its applicable provisions.

Depending on the employee’s circumstances, a Certificate of Coverage may be relevant for obtaining specified exemptions.

French companies should review assignment duration, eligibility conditions, the relevant social-security authorities and supporting documentation before implementing payroll arrangements.

Official references are available from the Ministry of Labour and Employment and Employees’ Provident Fund Organisation.

12. GST, Customs and EU–India Trade Compliance

GST Registration and Tax Obligations

French-owned businesses engaged in manufacturing, trading, services or e-commerce activities in India should assess their GST registration and compliance requirements.

The applicable obligations depend on taxable supplies, turnover, place of supply, location and other provisions of Indian GST law.

EzyBiz provides GST Registration Services in India for foreign-owned businesses.

Importing French Machinery, Equipment and Goods

French businesses importing machinery, technology, industrial equipment, components or consumer products should evaluate Indian customs classification, valuation, import duties, product standards and Importer Exporter Code requirements.

Until the EU–India Free Trade Agreement becomes legally effective, importers must apply the currently applicable Indian customs framework.

Once the agreement enters into force, any preferential duty treatment must be assessed according to the final tariff schedule, origin requirements and implementation procedures.

Import-export information can be obtained through the Directorate General of Foreign Trade.

13. Investment and Business Opportunities for French Companies

Aerospace, Defence and Space Technology

Aerospace, defence and space represent important areas of India–France strategic and industrial cooperation.

French manufacturers, technology providers, engineering businesses and specialist suppliers may evaluate opportunities involving component manufacturing, technical services, research and eligible industrial partnerships.

Defence and other regulated activities remain subject to the applicable FDI framework, licensing, security and sector-specific conditions.

Artificial Intelligence, Digital Technology and Innovation

India and France have expanded cooperation in artificial intelligence, digital technology, research, cybersecurity and innovation.

The 2026 India–France Year of Innovation may provide opportunities for French businesses establishing Indian technology teams, R&D centres, software operations or engineering facilities.

Inter-company service arrangements, intellectual-property ownership, data protection, employment and transfer pricing should be considered in the proposed structure.

Energy, Transport, Healthcare and Consumer Businesses

French companies may also evaluate investment opportunities involving renewable energy, civil nuclear cooperation, transport infrastructure, metro systems, environmental technology, healthcare, luxury goods, food, industrial products and advanced manufacturing.

Business models involving regulated infrastructure, nuclear activities, healthcare products or other specialist sectors require activity-specific licences and regulatory review.

French companies should select their India entry approach according to commercial objectives rather than assuming that one structure is appropriate for all industries.

14. Location Selection, Timeline and Setup Costs

Choosing an Indian State or Business Location

French industrial businesses should evaluate locations based on customers, suppliers, logistics, infrastructure, land, utilities, labour availability, regulatory approvals and state incentives.

Depending on the activity, Maharashtra, Tamil Nadu, Gujarat, Karnataka, Telangana, Haryana, Uttar Pradesh and other industrial regions may be considered.

Technology, engineering and shared-service operations may evaluate Bengaluru, Hyderabad, Chennai, Pune, Mumbai, Delhi NCR and other major business centres.

The most suitable location depends on the Indian operation’s actual functions, cost structure and long-term objectives.

Indicative France-to-India Incorporation Timeline and Cost

Where complete and appropriately authenticated French documentation is available, straightforward incorporation of an Indian private limited subsidiary may often be completed within approximately one to three weeks, subject to MCA processing, company-name approval and case-specific queries.

Banking, foreign investment reporting, GST, payroll and operational registrations may require additional time.

Implementation stage	Indicative planning position
India entry strategy and FDI assessment	Approximately 2–5 business days for a straightforward preliminary review
French documentation and apostille	Depends on document readiness and authentication requirements
Indian subsidiary incorporation	Often 1–3 weeks after complete documentation
Corporate bank onboarding	Subject to bank KYC and approval
Foreign capital and FEMA reporting	Applicable statutory and banking timelines
GST, payroll and operational registrations	Depends on the proposed activities

These are indicative estimates and not guaranteed statutory processing times.

Setup costs depend on authorised capital, state stamp duty, registered-office arrangements, French document authentication, professional services, foreign directors and applicable licences.

15. Frequently Asked Questions for French Companies

Can a French Company Own 100% of an Indian Subsidiary?

Yes, 100% foreign ownership is permitted in many Indian sectors, subject to applicable FDI restrictions and conditions.

The Indian company must also comply with statutory requirements concerning minimum members, directors and corporate disclosures. A legally appropriate nominee shareholding arrangement may be relevant to a wholly owned private limited subsidiary.

Does a French Company Need an Indian Resident Director?

An Indian company must satisfy the applicable resident-director requirement under the Companies Act, 2013.

Foreign nationals may also act as directors, subject to relevant legal requirements. The French parent company’s documents, including Kbis, Statuts and resolutions, may require appropriate authentication and translation.

Are the EU–India FTA and the 2026 India–France DTAA Protocol Effective?

The EU–India Free Trade Agreement negotiations concluded in January 2026, but preferential trade benefits require completion of the relevant legal entry-into-force procedures.

Similarly, the India–France DTAA amending protocol signed in February 2026 must be evaluated according to its effective-date provisions and the required procedures in both jurisdictions.

French companies should verify the applicable treaty and trade provisions as of the date of their transactions before applying any concession or revised tax treatment.

16. How EzyBiz Supports French Companies Entering India

End-to-End France-to-India Business Establishment Advisory

EzyBiz India Consulting LLP assists French companies throughout the India market-entry lifecycle, from initial entity selection to incorporation and continuing financial and regulatory compliance.

Our services include:

• India market entry strategy and entity selection;
• wholly owned subsidiary incorporation;
• joint venture structuring and registration;
• branch, liaison and project office advisory;
• French Kbis, Statuts and corporate-document review;
• apostille and English-translation guidance;
• FDI and beneficial ownership assessment;
• Indian company incorporation and registration;
• FEMA and RBI compliance;
• corporate bank-account coordination;
• foreign capital and share allotment assistance;
• FC-GPR and annual FLA reporting;
• India–France DTAA and international tax advisory;
• transfer pricing and Form 3CEB compliance;
• GST registration and compliance;
• accounting, bookkeeping and statutory audit;
• payroll and employment compliance;
• ROC and corporate secretarial compliance;
• manufacturing and GCC establishment advisory; and
• ongoing India regulatory compliance.

Our team comprises Chartered Accountants, Company Secretaries and associated professionals, including professionals with Big Four experience.

Contact Our India Market Entry Advisory Team

Whether your French company plans to establish an Indian subsidiary, develop a joint venture, invest in manufacturing, set up an engineering centre or expand customer operations, EzyBiz can assist with the legal-structure, taxation and regulatory aspects of entering India.

Mobile: +91 98992 17778

Email: anil@ezybizindia.in

WhatsApp: Speak with Our India Entry Experts

Related Services

• India Market Entry Consulting
• India Market Entry Services by Country
• Business Setup Services in India
• Foreign Company Registration in India
• Wholly Owned Subsidiary Registration
• Joint Venture Registration in India
• Branch Office Registration
• Liaison Office Registration
• Project Office Registration
• FEMA and RBI Advisory Services
• International Tax Advisory
• Transfer Pricing Advisory Services
• GST Registration Services
• Accounting and Bookkeeping Services
• Manufacturing Setup in India
• Global Capability Centre Setup in India

Reviewed By: CA Anil Agrawal, Founder, EzyBiz India Consulting LLP. Over 20 years of professional experience in India market entry, taxation, FEMA, transfer pricing and cross-border regulatory advisory.

Last Updated: November 2026

Disclaimer: This article provides general information and does not constitute legal, investment, taxation, customs, FEMA or regulatory advice. The appropriate India market entry structure and applicable obligations for French companies depend on the proposed activities, legal form, sector, ownership and beneficial ownership, investment amount, location and individual transaction circumstances. Indian FDI policy, FEMA and RBI regulations, company law, the India–France tax convention, the February 2026 amending protocol, EU–India trade arrangements, GST, customs, employment and sector-specific requirements may change. The treaty protocol and EU–India FTA should be applied only after confirming their applicable legal status, effective dates and relevant conditions. French businesses should obtain professional advice before incorporating an Indian entity, making investments, transferring funds, claiming treaty or trade benefits, or commencing Indian operations.