Setup: the step-by-step plan

Incorporating a Subsidiary in India from Germany: Who Does What, in What Order

By Abhishek Jaiin, Chartered Accountant (ICAI membership no. 544646), AU Corporate · Last updated 26 October 2026

Short answer

A German parent forms an Indian private limited company in about four to six weeks from complete documents, and the first payroll and bank account follow within about twelve. The work splits cleanly: the German team supplies the board decision, certified and translated documents and the funds, while the Indian team handles the name, SPICe+, registrations, bank account and RBI reporting. Two clocks run after the money arrives: share allotment within 60 days and Form FC-GPR within 30 days of allotment.

← Back to the complete guide: How to Set Up a Subsidiary in India from Germany

Key facts

Typical time4 to 6 weeks to incorporate; about 12 weeks to a working bank account, payroll and first filings
DirectorsAt least two, with at least one who has stayed in India 182 days or more in the year
ShareholdersAt least two; a wholly owned subsidiary uses a nominee shareholder or a group company as the second
Registered officeA physical address in India with proof of use
Main filingSPICe+ with the memorandum and articles of association
After incorporationINC-20A within 180 days; auditor appointment within 30 days; GST, provident fund and ESI registrations as needed
RBIShares allotted within 60 days of receiving funds; Form FC-GPR within 30 days of allotment

The split: German side and Indian side

StageGerman teamIndian teamLead time
1. DecideManagement and shareholders approve the investment, structure, funding amount and nomineeSector check against the FDI Policy; name search1 week
2. PapersNotarise, apostille and translate the document setPrepare MoA, AoA and SPICe+ drafts; arrange DSCs and DINs2 to 3 weeks
3. FileSend originals or scans; confirm directorsFile SPICe+; receive the certificate of incorporation, CIN, PAN and TAN1 to 2 weeks
4. BankProvide parent KYC and owner details, including the Transparenzregister extractOpen the current account; arrange the funds-receipt process2 to 4 weeks
5. FundRemit capital from the parent's own account in eurosObtain the inward remittance advice; allot shares within 60 days1 to 3 weeks
6. ReportProvide the parent's KYC to the dealer bank; make German notificationsFile Form FC-GPR within 30 days of allotment; valuation certificate2 to 4 weeks
7. CommenceApprove the first budget; set the reporting calendarFile INC-20A within 180 days; register for GST, PF and ESI; appoint the auditor4 to 8 weeks

The steps in order

  1. Check the sector. Match the activity to the FDI Policy to confirm the Automatic Route, and check the owner chain for land-border country ownership.
  2. Choose the directors. One must satisfy the 182-day residence test. German-based directors can be appointed but must sign digitally.
  3. Prepare and legalise the German documents. See the documents guide.
  4. Reserve the name and file SPICe+. The Registrar issues the Certificate of Incorporation with the CIN. PAN and TAN follow with it.
  5. Open the bank account. The bank verifies the German parent's ownership chain and may ask for translated accounts.
  6. Send the capital. Remit from the parent's own account. A payment from another group company is a red flag for the Indian bank.
  7. Allot shares and report to the RBI. Allot within 60 days of the funds arriving. File Form FC-GPR within 30 days of allotment.
  8. Commence business. File INC-20A within 180 days, appoint the first auditor within 30 days and register for GST, provident fund and ESI where applicable.

The first 180 days, beyond the incorporation

  • Month 1: bank mandate, accounting set-up, GST registration decision, payroll provider.
  • Month 2: intercompany agreements (services, licences, loans) with transfer pricing support, and the residence certificate and Form 41 set for the parent.
  • Months 3 and 4: hiring, ESI and provident fund registration, shops and establishment licence, professional tax in the state.
  • Before day 180: INC-20A declaration of commencement, which allows the company to start business and operate fully.

Costs

  • Government fees and stamp duty depend on the state and the authorised capital.
  • Professional fees for incorporation, registrations and the first reports.
  • Notary, apostille and translation on the German side.
  • Valuation certificate needed for share issue pricing under FEMA.
  • Bank and remittance charges on the capital transfer, including any exchange margin.

AU Corporate's fee for setting up the subsidiary is USD 750 to USD 1,000 for share capital up to ₹10 lakh (₹10 lakh is about €9,400 at an indicative ₹106.3 per euro on 23 October 2026). The costing depends on your plan.

Where the plan slips

  • Translations that are ordered before the apostille, so the apostille text is missing.
  • A bank that asks for owner documents the German team has not prepared.
  • Funds sent before the valuation is ready, which then misses the 60-day allotment clock.
  • Allotment done but FC-GPR left to the end of the month.
  • No Resident Director in place when the Registrar asks.

Official sources

Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, Federal Central Tax Office (BZSt), Handelsregister and the Deutsche Bundesbank.

Frequently asked questions

How long does it take to set up an Indian subsidiary from Germany?

Usually four to six weeks from complete documents to incorporation, and about twelve weeks to a working bank account, payroll and first filings.

Do German directors need to visit India to incorporate the subsidiary?

No. The filing is online. Directors need digital signatures and notarised identity documents, and the time difference is only three and a half to four and a half hours.

What are the two RBI deadlines after the capital arrives?

Allot the shares within 60 days of receiving the funds, then file Form FC-GPR within 30 days of allotment.

When must the Indian subsidiary file INC-20A?

Within 180 days of incorporation, confirming that the subscribers have paid for their shares.

Can the German parent be the only shareholder of the Indian company?

A private limited company needs at least two shareholders, so a wholly owned subsidiary uses a nominee or a group company as the second, holding one share.

What is the fee for setting up an Indian subsidiary?

AU Corporate's fee is USD 750 to USD 1,000 for share capital up to ₹10 lakh (₹10 lakh is about €9,400 at an indicative ₹106.3 per euro on 23 October 2026). The costing depends on your plan.

Does the capital have to come from the parent's own bank account?

Yes. Remit from the account of the foreign investor through the banking channel. A payment from a third party can cause the bank to reject the receipt for FEMA purposes.

See all 146 FAQs →Plain answers on incorporation, FEMA, tax, hiring and exit.

Sources

← Back to the complete guide

Last updated 26 October 2026. General information only, not legal or tax advice. Indian and German rules change often; confirm current requirements before acting.

Talk to AU Corporate

Ready to Incorporate from Germany?

Tell us your sector, share capital and target date, and we'll send the SPICe+ checklist for a German parent and a fixed quote.

  • • Company incorporation and entity selection
  • • FDI, FEMA and regulatory guidance
  • • Tax, banking and post-incorporation support