The costliest mistakes UK companies make in India are starting the UK paperwork late, missing the 60-day allotment and 30-day FC-GPR deadlines, skipping the valuation, assuming UK transfer pricing exemptions apply in India, letting UK staff drift into a permanent establishment, sending data without a transfer mechanism, and forgetting that UK bribery and fraud-prevention laws follow the group into India.
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Key facts
| Number of mistakes | 13, grouped by setup, money, tax, people and UK law |
|---|---|
| Most common cause | Treating India as a copy of UK practice |
| Cheapest fixes | A calendar, a valuation file and an intercompany agreement before the first invoice |
Setup mistakes
- Starting the UK documents late. Notarisation and apostille lead times set the pace for the whole project. Start before you choose the name. See documents and apostille.
- Mismatched names and addresses. Differences between the Companies House record, passports and resolutions cause rejections and repeated notarisation.
- Overlooking the Resident Director rule. Plan the director who has spent 182 days in India before you file. See structure options.
Money and RBI mistakes
- Missing the 60-day and 30-day clocks. Allot shares within 60 days of the money arriving and file Form FC-GPR within 30 days of allotment. See funding and FEMA.
- Skipping the valuation. Shares issued to a UK investor at less than fair value breach the pricing floor.
- Paying related parties without an agreement. Fees and royalties paid without a signed agreement and benchmarking are what tax officers pick on. See getting money out.
Tax mistakes
- Assuming the UK transfer pricing SME exemption applies in India. It does not. See transfer pricing.
- Not claiming the treaty rate properly. Without the HMRC certificate of residence and Form 41, the higher domestic rate is deducted.
- Letting UK staff create a permanent establishment. Count days against the 90-day and 30-day tests. See the treaty guide.
People and data mistakes
- Using the UK contract unchanged. Indian statutes and state rules apply. See hiring in India.
- Sending staff without a certificate of coverage. The Double Contributions Convention only helps if the certificate is in place. See UK employees in India.
- Moving UK personal data to India without a transfer mechanism. India has no UK adequacy. See data protection.
UK-law mistakes
- Forgetting that UK law follows the group. The Bribery Act and the failure-to-prevent-fraud offence can reach conduct by the Indian subsidiary. Put anti-bribery and fraud-prevention procedures in place before the first hire. See UK parent obligations.
A pre-filing checklist
- UK documents notarised and apostilled with consistent names.
- Sector checked against the FDI Policy and the Resident Director confirmed.
- Board resolution, valuation and funding plan agreed with allotment and FC-GPR dates in the calendar.
- Intercompany agreements signed and the transfer pricing approach agreed.
- Treaty documents (HMRC certificate, Form 41) ready for the first payment.
- Secondment, certificate of coverage and day-count log ready for UK staff.
- Data transfer mechanism, anti-bribery and anti-fraud policies in place.
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, HMRC, Companies House and the UK legalisation service for apostilles.
Frequently asked questions
What is the most common mistake UK companies make in India?
Treating India as a copy of UK practice: using UK contracts unchanged, assuming UK transfer pricing exemptions apply, and starting UK documents too late are the most frequent.
What are the deadlines UK companies most often miss?
The 60-day allotment after the funds arrive, the 30-day Form FC-GPR filing after allotment and the INC-20A commencement filing within 180 days of incorporation.
Do UK transfer pricing exemptions apply in India?
No. UK small and medium-sized enterprises are generally exempt from UK transfer pricing, but India has no size exemption, so the Indian subsidiary still needs documentation and Form 48.
Does the UK Bribery Act apply to the Indian subsidiary?
It can apply to the UK parent through the conduct of its Indian subsidiary or agents. Adequate procedures are the defence, so put them in place before operations start.
Related guides
Incorporating an Indian Subsidiary from the UK: A Week-by-Week Plan
A week-by-week plan for a UK company to incorporate a wholly owned Indian subsidiary: documents, DSC and DIN, SPICe+, bank account, FC-GPR, first board meeting and the first 90 days.
Read the guide →Funding an Indian Subsidiary from the UK: Instruments, Pricing Floor, Valuation and RBI Reporting
How a UK parent puts money into an Indian subsidiary legally: equity, convertible preference shares and loans, the fair-value pricing floor, the 60-day allotment rule and Form FC-GPR.
Read the guide →Documents a UK Parent Needs for an Indian Subsidiary: Companies House Papers, Notarisation and the Apostille
The documents a UK company needs to incorporate an Indian subsidiary, how Companies House papers, notarisation and the UK apostille work, and the mistakes that cost weeks.
Read the guide →Transfer Pricing in India for UK-Owned Subsidiaries: What the Indian Rules Require and How They Differ from the UK
How Indian transfer pricing applies to an Indian subsidiary of a UK group: arm's length pricing, Form 48, documentation, methods, safe harbours, audits and how it differs from the UK regime.
Read the guide →Sources
Last updated 19 October 2026. General information only, not legal or tax advice. Indian and UK rules change often; confirm current requirements before acting.