Foreign investment in wholly owned subsidiary in India

Foreign Investment in Wholly Owned Subsidiary in India: FEMA, FDI & RBI Compliance Guide

Foreign investment in a wholly owned subsidiary in India is one of the most common ways for an overseas company to fund and establish long-term business operations in the country.

A foreign company planning a long-term presence in India may establish a Wholly Owned Subsidiary in India and hold up to 100% of its shares, subject to the applicable Foreign Direct Investment (FDI) policy, sectoral caps, entry route and other regulatory conditions.

However, incorporation of the Indian subsidiary is only the first step.

The foreign parent must also ensure that investment into the Indian company complies with the Foreign Exchange Management Act (FEMA), the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, applicable RBI directions, the Companies Act, 2013 and India’s FDI policy.

Foreign investors should therefore review the investment structure before funds are remitted to India.

Important considerations include:

• Whether foreign investment is permitted in the proposed business activity
• Whether 100% FDI is allowed
• Automatic Route or Government Route
• Country and beneficial ownership of the foreign investor
• Nature of equity instruments to be issued
• FEMA valuation and pricing requirements
• Mode of remittance
• Timeline for issue of shares
• FC-GPR reporting
• Annual FLA reporting
• Downstream investment
• Transfer pricing
• Repatriation of profits
• Exit and transfer of shares

Foreign businesses that are still deciding how to establish their Indian operations may first review our detailed guide on Business Setup in India or our broader India Market Entry Consulting Services.

Is Investment by a Foreign Parent in an Indian Subsidiary Treated as FDI?

Generally, yes.

Under the RBI foreign investment framework, investment through equity instruments by a person resident outside India in an unlisted Indian company constitutes Foreign Direct Investment.

Since a newly incorporated wholly owned subsidiary is normally an unlisted Indian company, investment made by its foreign parent through eligible equity instruments is generally treated as FDI.

The investment must therefore comply with:

• Applicable sectoral caps
• Automatic or Government approval route
• FDI-linked conditions
• FEMA pricing guidelines
• Permitted modes of payment
• Share allotment requirements
• RBI reporting requirements
• Beneficial ownership requirements
• Companies Act requirements

The current regulatory framework can be reviewed in the RBI Master Direction – Foreign Investment in India.

Key Issues for Foreign Investment in an Indian Subsidiary

Issue	Key Consideration
FDI eligibility	Verify whether foreign investment is permitted in the proposed business activity
Foreign ownership	Up to 100% foreign ownership is permitted in many sectors, subject to applicable conditions
Entry route	Determine whether investment falls under Automatic Route or Government Route
Investor jurisdiction	Check the country of incorporation and nationality of the investor
Beneficial ownership	Examine ultimate ownership and control, including land-border country implications
Investment instrument	Select appropriate FEMA-permitted equity instruments
Valuation	Ensure compliance with FEMA pricing guidelines
Initial MOA subscription	Subscription to Memorandum may be made at face value, subject to applicable conditions
Mode of payment	Funds must be received through permitted banking channels/accounts
Share allotment	Equity instruments should generally be issued within 60 days
FC-GPR	Report qualifying issue within the prescribed timeline
FLA Return	Annual reporting may be required
Downstream investment	Separate FEMA rules can apply where the subsidiary invests in another Indian entity
Repatriation	Dividend, service fees, royalties and exit proceeds require appropriate tax/FEMA review
Exit	Pricing and reporting requirements should be considered before transferring shares

Check Whether 100% Foreign Investment Is Permitted

The first step is to identify the precise business activities that the Indian subsidiary will undertake.

India permits up to 100% foreign investment under the Automatic Route in many sectors. However, some sectors are subject to:

• Sectoral caps
• Government approval
• FDI-linked conditions
• Ownership or control requirements
• Licensing requirements
• Other restrictions

Certain activities are also prohibited for foreign investment.

Under the Automatic Route, prior Government approval is generally not required, provided that the investor and Indian company satisfy the applicable sectoral and regulatory conditions.

Under the Government Route, prior approval from the Government of India is required.

The applicable policy should be checked from the DPIIT Foreign Direct Investment Policy together with subsequent Press Notes and amendments.

Foreign investors should not assume that merely because an Indian company can be incorporated, 100% foreign ownership is automatically permitted in its proposed business activity.

The FDI analysis should therefore be completed before incorporation or before funds are transferred.

Automatic Route vs Government Route

One of the most important issues in foreign investment planning is determining the correct entry route.

Automatic Route

Under the Automatic Route, prior Government approval is not normally required.

The investor can proceed with the investment subject to compliance with:

• Sectoral caps
• FDI-linked conditions
• FEMA requirements
• Pricing guidelines
• Reporting requirements
• Other applicable laws

Government Route

Where the proposed investment falls under the Government Route, approval must generally be obtained before the investment is made.

The requirement may arise because of:

• The business sector
• Foreign ownership limits
• Investor jurisdiction
• Beneficial ownership
• Sector-specific conditions
• Other regulatory restrictions

Foreign businesses considering different structures for entering India can also compare a wholly owned subsidiary with a Joint Venture in India before finalising the investment model.

Country of Investor and Beneficial Ownership – Important 2026 Rules

Foreign investors must examine not only the immediate shareholder but also the ownership and control behind the investing entity.

India’s rules relating to investments involving countries sharing a land border with India have undergone an important change in 2026.

Under the current RBI framework, investment by an entity or citizen of a country sharing a land border with India, or investment where the relevant beneficial ownership is connected with such a country, may require the Government Route.

The beneficial-owner test is now linked to the definition and criteria under the Prevention of Money-laundering framework.

Further, an investment having direct or indirect ownership from a land-border country which does not otherwise require Government approval may nevertheless be subject to specific reporting requirements.

Foreign investors should therefore examine:

• Immediate foreign shareholder
• Country of incorporation
• Intermediate holding entities
• Ultimate holding company
• Beneficial owners
• Voting rights
• Management rights
• Shareholders’ agreements
• Control arrangements
• Ultimate effective control

The latest requirements are incorporated in the RBI Master Direction – Foreign Investment in India.

The 2026 policy changes can also be reviewed in DPIIT Press Note No. 2 (2026 Series).

This review should ideally be completed before the foreign parent remits capital to India.

Choose the Appropriate Investment Instrument

A foreign parent company should determine how the Indian subsidiary will be funded.

Under the FEMA foreign investment framework, an Indian company can receive foreign investment through permitted equity instruments.

These broadly include:

• Equity shares
• Fully and mandatorily convertible debentures
• Fully and mandatorily convertible preference shares
• Permitted share warrants

The appropriate instrument depends upon the commercial and financial objectives of the group.

The foreign parent should consider:

• Initial capital requirements
• Working capital
• Future capital requirements
• Expected profitability
• Repatriation strategy
• Tax implications
• Transfer pricing
• Future investors
• Exit strategy

A foreign parent should also avoid treating a foreign loan as ordinary share capital.

Foreign debt is governed under a separate regulatory framework, including External Commercial Borrowing rules where applicable.

Accordingly, equity investment, convertible instruments and foreign debt should be evaluated separately before funds are transferred.

FEMA Pricing and Share Valuation

Pricing is one of the most important FEMA requirements for foreign investment in an Indian company.

Where an unlisted Indian company issues equity instruments to a person resident outside India, the issue price generally cannot be lower than the value determined using an internationally accepted pricing methodology on an arm’s-length basis.

For an unlisted company, the valuation may be certified, as permitted under the RBI framework, by:

• A Chartered Accountant
• A SEBI-registered Merchant Banker
• A practising Cost Accountant

The RBI Master Direction on Foreign Investment contains the applicable pricing framework.

Another important point is the age of the valuation certificate.

For application of the FEMA pricing guidelines, the valuation certificate should generally not be more than 90 days old as on the date of investment, except where pricing is determined under applicable SEBI guidelines.

Foreign investors should therefore coordinate the valuation exercise with the expected date of capital remittance.

Special Rule for Subscription to Memorandum of Association

A useful exception applies when the foreign shareholder subscribes to shares at the time the Indian subsidiary is incorporated.

Where shares are issued to a person resident outside India by way of subscription to the Memorandum of Association in compliance with the Companies Act, the investment may be made at face value, subject to the applicable entry route and sectoral caps.

This position is specifically recognised under the RBI Foreign Investment Master Direction.

This should be distinguished from a subsequent capital infusion after incorporation, for which the normal FEMA pricing rules may apply.

Foreign investors should therefore carefully determine the initial capital requirement while planning their Wholly Owned Subsidiary in India.

Mode of Payment for Foreign Investment

Investment consideration must be received through a permitted mode.

Broadly, the amount may be received through:

• Inward remittance from abroad through banking channels; or
• Funds held in an eligible repatriable foreign currency or Rupee account maintained in accordance with FEMA.

Foreign investors should ensure consistency between:

• Name of the proposed shareholder
• Name of the remitter
• Foreign investor KYC
• Amount remitted
• Purpose of remittance
• Share subscription documents
• Number of shares proposed to be issued
• Issue price

Differences between the remitting party and the proposed shareholder can create difficulties during RBI reporting and should be reviewed before the remittance is made.

Shares Should Generally Be Issued Within 60 Days

The Indian subsidiary should carefully monitor the date on which the foreign investment is received.

Under the RBI framework, if equity instruments are not issued within 60 days from receipt of consideration, the amount generally has to be refunded within 15 days after completion of the 60-day period.

Non-compliance can result in a FEMA contravention.

Accordingly, immediately after receiving foreign capital, the Indian subsidiary should coordinate:

1. Inward remittance documentation
2. Investor KYC
3. Valuation, where applicable
4. Board approval
5. Share allotment
6. Companies Act filings
7. Issue of share certificates
8. FEMA reporting

The applicable requirement is contained in the RBI Master Direction – Foreign Investment in India.

Foreign share application money should therefore not be allowed to remain pending indefinitely.

Form FC-GPR Filing

After the Indian subsidiary issues equity instruments to the foreign shareholder, the transaction generally needs to be reported in Form FC-GPR, where applicable.

Form FC-GPR is generally required to be filed within 30 days from the date of issue of the equity instruments.

Reporting is undertaken through the RBI foreign investment reporting framework and the company’s Authorised Dealer Bank.

Depending upon the transaction, supporting documents may include:

• Foreign investor details
• Shareholding information
• Board resolution
• Share allotment documents
• Valuation certificate, where applicable
• KYC/banking documents
• Company Secretary or other prescribed certificates
• Government approval, where applicable
• Other documents requested by the AD Bank

The relevant RBI reporting framework can be reviewed under the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations.

Since deficiencies or inconsistencies in documentation can delay processing by the AD Bank, FC-GPR documentation should ideally be prepared along with the share-allotment process rather than after the filing deadline approaches.

Capitalisation of Pre-Incorporation and Pre-Operative Expenses

Foreign parent companies often incur expenditure before the Indian subsidiary becomes operational.

Such expenses may include:

• Professional fees
• Incorporation expenses
• Legal fees
• Consultancy
• Rent
• Initial office expenses
• Establishment expenses
• Other expenses necessary for commencing operations

The RBI framework provides a specific facility under which an eligible wholly owned subsidiary may issue equity instruments to its non-resident parent against qualifying pre-incorporation or pre-operative expenses.

For a qualifying WOS operating in a sector where:

• 100% foreign investment is permitted under the Automatic Route; and
• There are no FDI-linked performance conditions,

equity instruments may, subject to prescribed conditions, be issued against such expenses up to 5% of authorised capital or USD 500,000, whichever is lower.

The provision also carries specific FC-GPR and statutory auditor certification requirements.

The detailed conditions are available in the RBI Foreign Investment Master Direction.

Foreign parent companies should therefore preserve invoices, contracts, payment records and supporting documentation for expenses incurred before incorporation.

Annual FLA Return

FEMA compliance does not necessarily end after FC-GPR has been completed.

Indian companies that have received foreign investment and meet the applicable criteria may also be required to file the Annual Return on Foreign Liabilities and Assets (FLA Return).

The FLA Return is generally required to be filed with RBI by 15 July every year, based on the prescribed financial information.

The official filing requirements and FAQs can be reviewed on the RBI FLA Return FAQ page.

A foreign-owned subsidiary should therefore maintain a separate annual FEMA compliance calendar in addition to its:

• Companies Act compliance
• Income-tax compliance
• GST compliance
• Transfer pricing compliance
• Payroll and labour compliance

Foreign businesses requiring end-to-end assistance from incorporation through ongoing regulatory compliance may review our India Market Entry Consulting Services.

Additional Capital Infusion by the Foreign Parent

Many Indian subsidiaries require additional capital after commencing business.

Additional funds may be required for:

• Expansion
• Working capital
• Recruitment
• Marketing
• Acquisition of machinery
• Establishing manufacturing facilities
• Research and development
• Technology operations
• New offices
• Acquisitions

Each additional capital infusion should be reviewed separately.

Before receiving further foreign investment, the company should verify:

• Current sectoral cap
• Applicable entry route
• Existing foreign shareholding
• Authorised share capital
• Proposed issue price
• FEMA valuation
• Investment instrument
• Remittance documentation
• Share-allotment timeline
• FC-GPR requirement
• Beneficial ownership implications

Foreign companies should ideally prepare a reasonable India funding plan at the time the subsidiary is established rather than making ad-hoc remittances every few months.

Downstream Investment by the Indian Subsidiary

An Indian wholly owned subsidiary may subsequently invest in another Indian company or LLP.

Where the investing Indian entity is foreign-owned or foreign-controlled, such investment may constitute downstream investment and may be treated as indirect foreign investment in the investee entity.

In such cases, the investee entity may need to satisfy applicable:

• Entry route requirements
• Sectoral caps
• Pricing guidelines
• FDI-linked conditions
• Funding requirements
• Reporting requirements

The RBI describes the guiding principle of downstream investment as ensuring that a transaction which cannot be undertaken directly is not indirectly achieved through another Indian entity.

Detailed requirements are available in the RBI Foreign Investment Master Direction.

Foreign groups contemplating multiple Indian entities or holding-company structures should therefore undertake a FEMA review before making downstream investments.

Transfer Pricing Between Foreign Parent and Indian Subsidiary

A foreign parent and its Indian wholly owned subsidiary are related parties, and transactions between them may fall within India’s transfer pricing framework.

Common international transactions include:

• Management services
• Technical support
• Software development services
• Royalty
• Licence fees
• Cost allocations
• Purchase and sale of goods
• Import of machinery
• Intercompany support services
• Financing arrangements

Such transactions may require arm’s-length pricing, appropriate agreements, supporting documentation and transfer pricing reporting under applicable Indian tax law.

The equity investment itself should be distinguished from subsequent operating transactions between the parent and subsidiary.

Foreign groups should therefore determine the commercial and transfer pricing model for the Indian subsidiary at an early stage.

Repatriation of Profits to the Foreign Parent

Foreign investment in an Indian subsidiary does not necessarily mean that profits must remain permanently in India.

Subject to the Companies Act, FEMA, applicable tax laws and transfer pricing requirements, funds may potentially be repatriated through legitimate mechanisms including:

• Dividends
• Royalty
• Technical service fees
• Management or support service fees
• Interest under eligible financing arrangements
• Sale proceeds on exit

However, these methods do not have identical regulatory or tax consequences.

For example, service fees and royalties between the Indian subsidiary and overseas parent may involve:

• Transfer pricing
• Withholding tax
• Applicable tax treaty provisions
• GST implications
• FEMA considerations
• Documentation requirements

Foreign investors should therefore consider their proposed profit-repatriation model while planning the initial investment structure.

Exit or Transfer of Shares

Foreign investment planning should also consider the eventual exit of the overseas shareholder.

A foreign shareholder may ultimately exit through:

• Sale to another foreign investor
• Sale to an Indian resident
• Group restructuring
• Merger or acquisition
• Buyback, where legally permissible
• Capital reduction
• Liquidation or closure

FEMA pricing rules differ depending on the direction of transfer.

For example, where equity instruments of an unlisted Indian company are transferred from a resident to a non-resident, the transfer price generally cannot be below the applicable FEMA value.

Conversely, where a non-resident transfers equity instruments to a resident, the transfer price generally cannot exceed the applicable FEMA value.

Certain transfers may also require reporting through Form FC-TRS.

Foreign investors contemplating a complete exit from India may also review our guide on How to Close a Subsidiary Company in India.

Exit planning should therefore form part of the original investment strategy rather than being considered only when the foreign parent decides to leave India.

Common Mistakes Foreign Investors Should Avoid

Foreign companies frequently face FEMA issues because investment documentation is reviewed only after the funds have already reached India.

Common mistakes include:

• Remitting funds before checking FDI eligibility
• Assuming every sector allows 100% foreign ownership
• Ignoring Government approval requirements
• Not examining beneficial ownership
• Using the wrong funding instrument
• Treating a foreign loan as ordinary equity capital
• Using an expired or inappropriate valuation certificate
• Receiving funds from an entity different from the proposed shareholder without prior review
• Delaying share allotment beyond the prescribed FEMA timeline
• Delaying FC-GPR filing
• Ignoring annual FLA reporting
• Making downstream investment without FEMA review
• Undertaking intercompany transactions without transfer pricing documentation
• Planning repatriation only after substantial profits have accumulated

A pre-investment review can prevent many of these problems.

Foreign Investment Checklist Before Remitting Funds to India

Before a foreign parent remits funds to its Indian subsidiary, it should verify:

1. Proposed business activities of the Indian company
2. Applicable FDI sectoral cap
3. Automatic Route or Government Route
4. Country of the investor
5. Ultimate beneficial ownership
6. Proposed shareholding structure
7. Investment instrument
8. Authorised share capital
9. Initial and future funding requirement
10. FEMA valuation, where required
11. Validity of valuation certificate
12. Bank remittance documentation
13. Share-allotment timeline
14. FC-GPR requirements
15. Annual FLA compliance
16. Downstream investment plans
17. Transfer pricing model
18. Profit-repatriation strategy
19. Future fundraising
20. Exit strategy

Wholly Owned Subsidiary or Another India Entry Structure?

Opening an Indian subsidiary  is usually suitable where the foreign investor wants:

• Long-term operations in India
• Complete or substantial ownership
• Revenue-generating activities
• Employees in India
• Local contracts
• Manufacturing, trading or services
• Scalable business operations

However, it is not the only structure available.

Depending upon the foreign company’s objectives, alternative options may include a:

• Joint Venture in India
• Branch Office in India
• Liaison Office in India
• Project Office in India

Foreign companies that are uncertain about the appropriate structure can review the broader options under our Business Setup Services in India.

Why Proper Investment Structuring Is Important

Foreign investment in an Indian subsidiary involves much more than transferring funds from the overseas parent’s bank account to the Indian company’s bank account.

The investment structure may affect:

• Regulatory approvals
• Time required to commence operations
• Future fundraising
• Taxation
• Transfer pricing
• Profit repatriation
• Downstream investments
• Acquisitions
• Corporate restructuring
• Exit from India
• FEMA compliance exposure

A properly planned investment structure provides a more efficient foundation for long-term business expansion in India.

How EzyBiz India Can Assist Foreign Investors

EzyBiz India Consulting LLP provides end-to-end assistance to overseas businesses planning to enter and establish operations in India.

Our support includes:

• India entry strategy
• FDI eligibility analysis
• Automatic Route/Government Route assessment
• Beneficial ownership review
• Wholly owned subsidiary incorporation
• FEMA and RBI advisory
• Share valuation coordination
• Foreign remittance advisory
• Share allotment compliance
• FC-GPR reporting
• FLA reporting
• Downstream investment advisory
• Transfer pricing
• International taxation
• Profit repatriation advisory
• Accounting and bookkeeping
• Payroll
• GST compliance
• ROC and corporate compliance
• Exit and restructuring advisory

Foreign businesses planning to establish an Indian company can also review our detailed Wholly Owned Subsidiary Registration Services.

Frequently Asked Questions

Can a foreign company own 100% of an Indian subsidiary?

Yes. Up to 100% foreign ownership is permitted in many sectors in India, subject to applicable sectoral caps, entry routes, FDI-linked conditions and other regulatory requirements.

The proposed business activity should be reviewed under the prevailing FDI policy before the investment is made.

Is RBI approval required for every foreign investment in an Indian subsidiary?

No.

Many investments are permitted under the Automatic Route and do not require prior Government approval.

However, approval may be required depending upon the sector, investor jurisdiction, beneficial ownership and other applicable conditions.

What is the difference between the Automatic Route and Government Route?

Under the Automatic Route, prior Government approval is generally not required, provided the investment complies with applicable sectoral caps and conditions.

Under the Government Route, prior approval must generally be obtained before making the investment.

Is valuation required when a foreign parent subscribes to shares?

FEMA pricing requirements generally apply when an Indian company issues equity instruments to a non-resident.

For an unlisted company, the issue price generally cannot be below the applicable fair value determined using an internationally accepted pricing methodology.

However, shares issued by way of subscription to the Memorandum of Association may be issued at face value, subject to applicable entry-route and sectoral-cap requirements.

How old can the FEMA valuation certificate be?

For application of FEMA pricing guidelines, a valuation certificate issued by the prescribed professional should generally not be more than 90 days old as on the date of investment, subject to the exceptions provided under the RBI framework.

Within how many days should shares be allotted after foreign investment is received?

Equity instruments should generally be issued within 60 days from receipt of the consideration.

If the instruments are not issued within the prescribed period, the amount generally needs to be refunded within the applicable timeline.

What is Form FC-GPR?

Form FC-GPR is the FEMA reporting form generally used by an Indian company to report the issue of equity instruments to a person resident outside India.

What is the due date for FC-GPR?

Form FC-GPR is generally required to be filed within 30 days from the date of issue of the equity instruments.

Is FLA Return mandatory for every foreign-owned subsidiary?

The requirement depends upon whether the Indian entity meets the prescribed criteria relating to foreign liabilities and assets.

Where applicable, the FLA Return is generally required to be filed with RBI by 15 July each year.

Can a foreign parent provide a loan instead of share capital?

A foreign parent may be able to provide funding through permitted borrowing arrangements, but foreign debt is governed separately from equity investment.

External Commercial Borrowing and other FEMA requirements may apply.

The funding structure should therefore be examined before remitting a foreign loan to India.

Can pre-incorporation expenses be converted into equity?

In specified circumstances, an eligible wholly owned subsidiary may issue equity instruments against qualifying pre-incorporation or pre-operative expenditure incurred by the foreign parent, subject to the limits and conditions prescribed by RBI.

Can the Indian subsidiary invest in another Indian company?

Yes, subject to applicable law.

However, where the Indian subsidiary is foreign-owned or foreign-controlled, its investment in another Indian entity may constitute downstream investment and may be treated as indirect foreign investment.

Separate FDI and FEMA conditions may therefore apply.

Can profits be repatriated outside India?

Yes, subject to applicable Companies Act, FEMA and tax requirements.

Depending upon the circumstances, repatriation may take place through dividends, commercially justified service or royalty payments, eligible financing arrangements or exit proceeds.

Transfer pricing and withholding-tax provisions should also be considered.

Can a foreign shareholder sell its shares in the Indian subsidiary?

Yes.

Shares may generally be transferred subject to applicable FEMA pricing guidelines, sectoral conditions, tax requirements and reporting obligations.

Form FC-TRS may be applicable to specified transfers.

Is a wholly owned subsidiary better than a Branch Office?

It depends upon the commercial objective.

A wholly owned subsidiary is a separate Indian legal entity and is generally more suitable for long-term, scalable and revenue-generating operations.

A Branch Office is an extension of the foreign parent and may undertake only the activities permitted under the applicable regulatory framework.

Foreign businesses can compare the structure with our Branch Office in India guide.

Should the investment structure be planned before incorporating the Indian subsidiary?

Yes.

Ideally, the foreign investor should decide the proposed ownership, FDI eligibility, beneficial ownership position, initial capital, funding method, transfer pricing model and repatriation strategy before incorporation and remittance of funds.

This can significantly reduce subsequent FEMA, banking and regulatory issues.

Related India Market Entry Services

Wholly Owned Subsidiary in India

End-to-end assistance for foreign businesses establishing a 100% foreign-owned Indian subsidiary, including incorporation, FEMA, RBI and post-incorporation compliance.

India Market Entry Consulting

Strategic, regulatory and implementation support for overseas businesses establishing and expanding operations in India.

Business Setup in India

Assistance with selecting the appropriate business structure, incorporation, regulatory registrations, banking, taxation and operational setup.

Joint Venture Registration in India

Advisory and implementation support for foreign companies establishing Indian businesses with a local or strategic joint venture partner.

Branch Office in India

Registration, FEMA, RBI, tax and ongoing compliance support for foreign companies establishing a Branch Office in India.

Liaison Office in India

Assistance for foreign companies establishing a representative or liaison presence in India.

Project Office in India

Regulatory and compliance assistance for foreign companies establishing a temporary Indian presence for execution of specific projects.

Official Regulatory References

Reserve Bank of India – Master Direction: Foreign Investment in India
RBI Foreign Investment Master Direction

Department for Promotion of Industry and Internal Trade – Foreign Direct Investment Policy
DPIIT Foreign Direct Investment Policy

DPIIT – Press Note No. 2 (2026 Series): Investments from Countries Sharing Land Border with India
DPIIT Press Note No. 2 (2026 Series)

Reserve Bank of India – Reporting of Non-Debt Instruments
RBI FEMA Reporting Regulations

Reserve Bank of India – Foreign Liabilities and Assets Return
RBI FLA Return FAQs

Ministry of Corporate Affairs – Companies Act, 2013
MCA Companies Act, 2013

Related Services

• Foreign Company Registrtaion in India
• Wholly Owned Subsidiary Registration
• India Market Entry Consulting
• FDI Advisory
• FEMA & RBI Compliance
• FC-GPR Filing
• FLA Return Filing
• Share Valuation Assistance
• Downstream Investment Advisory
• Transfer Pricing
• International Tax Advisory
• Accounting & Payroll
• GST Compliance
• Corporate & ROC Compliance
• Profit Repatriation Advisory
• Exit & Restructuring Advisory

Prepared by: EzyBiz India Consulting LLP – India Entry & Regulatory Team

Last Updated: August 2026

Disclaimer

This article is intended for general informational purposes only and does not constitute legal, tax, investment or regulatory advice. Foreign investment regulations, FDI policy, sectoral conditions, beneficial ownership requirements, FEMA rules and reporting requirements may change from time to time and may vary depending upon the investor, jurisdiction, business activity and transaction structure. Professional advice should be obtained before making an investment, remitting funds or undertaking any regulatory filing in India.