Foreign subsidiary setup

Before you begin

Identify the ultimate owners, country links, sector, intended instruments and funding route. These determine the foreign-investment analysis and the documents needed from overseas participants.

Prepare an ownership chart showing the proposed Indian entity, each intermediate owner and the ultimate ownership information available. Keep the activity description consistent between the formation brief, bank discussion and intercompany arrangements. Identify uncertainty about ownership or the operating model before fixing the application sequence.

What the engagement covers

We build a formation and funding sequence, coordinate corporate records and notarisation requirements, and identify banking and reporting dependencies. Sector permission and tax structuring are expressly scoped instead of assumed.

The working pack should include a document-origin tracker, the person authorised to sign each document, execution requirements to be confirmed and the dependency between incorporation, banking and funding work. Track overseas originals, translated versions and final signed copies separately so the Indian team can identify the version used.

Records to prepare

• Foreign parent constitutional records
• ownership chart
• authorised signatory resolutions
• proposed Indian directors and office
• business activities
• investment and funding plan.

Include a proposed flow of funds and services: who pays the Indian company, what it supplies, which entity owns the relevant intellectual property and who employs the team. Separate initial investment from later operating receipts or other funding proposals.

A decision worth resolving early

A foreign SaaS parent establishing an Indian development team needs to consider the intercompany contract and invoicing model alongside ownership. Those choices affect the post-setup work.

For the development-team example, prepare a short responsibility map for customer contracting, development work, software ownership and expense reimbursement. Those facts give the corporate, banking, accounting and tax advisers a consistent starting point without presuming the final treatment.

Scope and fees

The proposal identifies the formation documents and funding coordination included, with intercompany drafting, valuation, tax analysis and sector approvals separately specified. Handover includes issued corporate records, submission references and a list of unresolved banking or reporting actions. The India-entry journey connects these workstreams.