Most Singapore companies enter India through a wholly owned private limited company, because it limits liability, can hire and invoice freely and is taxed at domestic corporate rates. A branch or liaison office needs RBI approval and a track record, a limited liability partnership suits some professional or investment cases, a GIFT City unit suits financial firms serving non-residents, and an Employer of Record fits a first hire. The right answer depends on whether you sell in India, deliver from India, or manage money from India.
← Back to the complete guide: How to Set Up a Subsidiary in India from Singapore
Key facts
| Wholly owned subsidiary | Private limited company; 100% foreign ownership in most sectors under the Automatic Route |
|---|---|
| Branch office | RBI approval; net worth of the Singapore company at least USD 100,000 and a profit record for the last five years |
| Liaison office | RBI approval; net worth at least USD 50,000 and a profit record for the last three years; no income-earning activity |
| Project office | For a specific contract won in India; usually set up without prior approval if conditions are met |
| LLP | Allowed with foreign investment in sectors where 100% FDI is on the Automatic Route and no performance-linked conditions apply |
| GIFT City IFSC unit | For financial services and some related services to non-residents, under IFSCA rules |
| Employer of Record | Third party employs your people in India; no entity required, not a long-term replacement |
The options side by side
| Structure | Best for | Main limits | Tax outcome in India |
|---|---|---|---|
| Wholly owned subsidiary | Sales, product development, support, captive teams | Two directors (one resident), audit, ROC and RBI compliance | Taxed as an Indian company at domestic rates |
| Branch office | The parent's own consultancy, trade or IT activity | RBI approval; track-record tests; parent is directly liable | Taxed as a foreign company at 35% plus surcharge and cess |
| Liaison office | Market research and liaison only | No commercial activity, no invoicing; funded from Singapore | No income; can still raise PE questions if it over-reaches |
| LLP | Professional services, some investment vehicles | FDI conditions; fewer public forms; partner roles | Taxed as an LLP at domestic rates; Singapore side needs review |
| GIFT City IFSC unit | Fund management, fintech, treasury, shipping finance and similar | IFSCA licensing; business with non-residents and units in the IFSC | IFSC tax incentives for qualifying units; FEMA rules differ |
| Employer of Record | A pilot with one to ten staff | The EOR is the legal employer; limited control; cost per head | EOR bears payroll tax; PE risk remains if your staff conclude contracts |
Choosing by business model
- Sell to Indian customers: a subsidiary. Customers expect an Indian invoice with GST, and an Indian entity can sign contracts and hold licences.
- Deliver services to Singapore or the region from India: a subsidiary, usually priced on a cost-plus basis and treated as an export of services. See Global Capability Centres.
- Explore the market first: a liaison office or an EOR pilot, with a plan to convert to a subsidiary at a defined point.
- Manage funds or run financial services: look at a GIFT City unit. Singapore financial groups already know the model, and the SGX Nifty product was migrated to the exchange in GIFT City in July 2023 as GIFT Nifty.
- Hold several Asian businesses: consider whether a Singapore holding company should own the Indian shares. See Using a Singapore holding company for India.
Why a private limited company is the default
- Limited liability for the Singapore parent, except where the parent gives guarantees or directs the business.
- Free to hire, invoice with GST, open bank accounts and own property.
- Dividend repatriation is a clear, documented route under FEMA and the treaty.
- Share capital can be raised in stages, with FC-GPR filed for each issue.
- Easier to sell, restructure or wind up than a branch.
Branch and liaison office: when they make sense
A branch lets the Singapore company carry on its own activity in India, such as consultancy, research or trading, but profits are taxed as a foreign company and the parent is directly liable for its debts. A liaison office can only liaise: it cannot earn income, and its costs are met by remittances from Singapore. Both need prior RBI approval through an authorised dealer bank, with the net worth and track-record tests listed above, and both file annual activity certificates.
LLP and GIFT City
An Indian LLP offers flexible governance and lighter filings than a company, and it can receive foreign investment where the sector allows 100% FDI through the Automatic Route with no performance-linked conditions. The Singapore side should check how its tax authority treats an LLP, because a foreign LLP may be treated as a company or as a transparent entity depending on the facts.
A unit in the GIFT City International Financial Services Centre is regulated by the IFSCA and serves non-residents and other IFSC units in foreign currency. The regime, the tax holiday and the FEMA treatment differ from onshore India, so take specific advice before using it for anything other than financial services.
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, IRAS, ACRA and the Singapore Academy of Law (apostilles).
Frequently asked questions
What is the best way for a Singapore company to enter India?
For most, a wholly owned private limited company. Branches and liaison offices need RBI approval and track records. An EOR suits a first hire, and a GIFT City unit suits financial services.
What net worth does a Singapore company need for an Indian branch office?
A net worth of at least USD 100,000 and a profit record in each of the last five years. For a liaison office the tests are USD 50,000 and three years.
Can a liaison office earn income in India?
No. A liaison office can only liaise. It cannot invoice or earn income, and its costs are met from remittances from the parent.
Can a Singapore company use an Indian LLP?
Yes, where the sector allows 100% FDI under the Automatic Route without performance-linked conditions. The tax treatment in Singapore needs separate review.
When should a Singapore company consider GIFT City?
When the business is financial services, fund management, fintech or related, and serves non-resident clients or other IFSC units. It is not a substitute for an onshore subsidiary for general trading.
Can a Singapore parent use an Employer of Record to start?
Yes, for a first few hires. The EOR is the legal employer, so control is limited, and your staff in India can still create a permanent establishment if they conclude contracts.
Related guides
Incorporating a Subsidiary in India from Singapore: Who Does What, in What Order
A split plan for a Singapore parent forming an Indian private limited company: what the Singapore team does, what the Indian team does, SPICe+, bank account, FC-GPR and the first 180 days.
Read the guide →Using a Singapore Holding Company for Indian Investments: What the Treaty Gives, and What Substance Is Needed to Keep It
How a Singapore holdco is used to own Indian subsidiaries: treaty positions on dividends and gains, grandfathering, Article 24A limitation of benefits, principal purpose test, POEM, GAAR and indirect transfer risk.
Read the guide →Setting Up a Global Capability Centre in India for a Singapore Group: Models, Pricing, Tax and Risk
How Singapore headquartered groups build captive centres in India: build-operate-transfer, captive subsidiary and hybrid models, cost-plus pricing, GST on exports, PE risk, MAS outsourcing and talent.
Read the guide →Funding an Indian Subsidiary from Singapore: Equity, Convertible Instruments, ECB Loans and RBI Reporting
How a Singapore parent funds an Indian subsidiary: equity pricing, compulsorily convertible instruments, external commercial borrowings, remittance mechanics, FC-GPR and annual FLA return.
Read the guide →Sources
Last updated 21 October 2026. General information only, not legal or tax advice. Indian and Singapore rules change often; confirm current requirements before acting.