Structures, tax and compliance — organised for a decision, not a textbook.
A working guide to how businesses set up and operate in India, for founders, overseas management and finance teams evaluating the market.
A large, complex, increasingly formalised market.
India offers scale — a large domestic market, a deep workforce and an increasingly digitised tax and regulatory system since the introduction of GST. It also asks for discipline: entity structuring, tax and GST compliance, FEMA reporting and corporate filings all need to be right from the start, because early mistakes are expensive to unwind. The sections below are a starting map, not a substitute for advice on your specific facts.
Choosing how to enter.
The right structure depends on intent — testing the market, executing a specific project, or running full operations.
Liaison office
For representing a foreign parent and market research, with no revenue-generating activity permitted in India.
Branch / project office
For executing a specific contract or project, or conducting permitted commercial activities under RBI approval routes.
LLP
A flexible structure for services-oriented or professional operations with limited liability.
Private limited company
The most common route for a full operating subsidiary, including 100% foreign-owned entities in eligible sectors.
What gets taxed, and when.
Direct and indirect tax obligations begin as soon as the entity is registered and operational.
Corporate tax
Annual income-tax compliance, advance tax instalments and tax audit where applicable.
GST
Registration, monthly/quarterly returns and input credit reconciliation for goods and services supplied in India.
Withholding tax (TDS)
Deduction obligations on domestic and cross-border payments, including Form 15CA/15CB for remittances abroad.
Transfer pricing
Documentation and reporting for transactions with related overseas group entities.
What keeps the entity in good standing.
Compliance does not end at incorporation — it becomes a recurring calendar.
FEMA / FDI reporting
Reporting of foreign investment received (FC-GPR), annual FLA returns and related RBI filings.
ROC & secretarial
Annual filings, board and shareholder meeting compliance, and statutory registers under the Companies Act.
Payroll & labour
Payroll processing coordination and statutory contributions such as PF and ESI where applicable.
Statutory audit
Annual audit requirements applicable to Indian companies and LLPs above prescribed thresholds.
Getting money back out, and running finance day to day.
Dividend repatriation, royalty and management fee payments each carry their own withholding and documentation requirements. For businesses that prefer not to build a full India finance team immediately, Virtual CFO and finance outsourcing support can cover accounting, reporting and compliance from day one.
Related reading
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