Three numbers describe the cost of an Indian subsidiary, and they should not be added together without labels: the one-time cost of setting up the company, the recurring cost of keeping it compliant and the capital you invest in shares. 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 roughly USD 10,500 at an indicative ₹95 per dollar (late-2026 level; check the live rate before remitting)). That covers the incorporation work only. Government and stamp charges, US notary and apostille costs, bank charges and conversion spread, the registered office, audit, tax filings, payroll and legal work are separate, and the right figure depends on your structure, state and plan. This page gives a framework and a template, and shows which lines US teams most often forget, so that you can compare quotes on the same basis.
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Key facts
| AU Corporate set-up fee | USD 750 to USD 1,000 for share capital up to ₹10 lakh; incorporation work only |
|---|---|
| Minimum capital | No statutory minimum for a private limited company; size it to your 12 to 18 month plan |
| One-time | Professional fee, government and stamp charges, digital signatures, US notary and apostille, first remittance charges |
| Recurring | Registered office, accounting, GST and TDS returns, payroll, statutory audit, annual filings, tax return, transfer pricing report |
| Variable | Legal agreements, licences, visas, employer-of-record fees, tax notices |
| US-side costs | Form 5471 and related US tax work, US notary, apostille and courier |
| Exchange rate | ₹10 lakh is roughly USD 10,500 at an indicative ₹95 per dollar (late-2026 level; check the live rate before remitting) |
| Not included | Salaries, rent and the capital that funds the business |
Set-up, running and capital
US finance teams often ask for a single figure for India. The honest answer is three. The set-up budget is a one-time spend that ends when the company has its certificate of incorporation, tax numbers, bank account and registers. The running budget is what the company pays each year to remain in good standing, whether or not it earns revenue. The capital is the money the parent invests, which is not a cost but needs to be sized so that the subsidiary can pay its running budget and build the business without an early second round. A board that sees them separately can compare each against the right benchmark.
One-time costs
| Line | Charged by | How it is set | Often forgotten |
|---|---|---|---|
| Incorporation professional fee | Your adviser | Fixed fee; AU Corporate is USD 750 to USD 1,000 for share capital up to ₹10 lakh | Whether name approval, PAN, TAN and first filings are included |
| Government filing fee and stamp duty on the charter documents | Ministry of Corporate Affairs and the state | Rises with authorised capital; differs by state | High authorised capital raises both |
| DIN and Digital Signature Certificates | Government and certifying agencies | Small fees per director | Each foreign director needs one |
| US notary, apostille and courier | Notary, Secretary of State, courier | Per document | Rework when a name differs between documents |
| Registered office | Landlord or business centre | Monthly or annual, with deposit | Deposit and minimum term |
| Bank charges and conversion spread on the first remittance | US and Indian banks | Fee plus exchange margin | The margin can exceed the stated fee |
| Foreign investment filing | Your adviser and the bank | Usually in advisory fees | Late filing carries a fee far above the cost of filing |
Running costs in the first year
| Item | Frequency | What drives the price |
|---|---|---|
| Accounting and bookkeeping | Monthly | Transactions, currencies and the US reporting pack |
| GST returns | Monthly or quarterly | Invoices and state registrations |
| TDS and withholding returns | Monthly deposits, quarterly returns | Payees and cross-border payments |
| Payroll, provident fund and state insurance | Monthly | Headcount |
| Statutory audit | Annual | Turnover and complexity |
| Company annual filings | Annual | Mostly fixed |
| Income tax return and advance tax | Annual and quarterly | Profit and adjustments |
| Transfer pricing report and Form 3CEB | Annual | Number and size of group transactions |
| US reporting support (Form 5471 data) | Annual | Frequency of US requests; see the US tax guide |
Prices for these lines vary a great deal between providers. AU Corporate quotes them against your plan, so ask for a costing and not a rate card. See the compliance calendar for the dates behind each line.
Sizing the capital
There is no statutory minimum capital for a private limited company. Add together the one-time costs, twelve to eighteen months of running costs, the payroll and rent of the team until revenue covers it, working capital for receivables and inventory, deposits and a reserve for delay. Because foreign investment is reported and priced under the Foreign Exchange Management Act, several small remittances create more paperwork than one larger one, but later top-ups are routine. ₹10 lakh is roughly USD 10,500 at an indicative ₹95 per dollar (late-2026 level; check the live rate before remitting). See funding and FC-GPR.
Budget template
| Block | Month 0 to 3 | Month 4 to 12 | Notes |
|---|---|---|---|
| Set-up (one time) | Fill in | None | Include US notary and apostille |
| Registered office and utilities | Fill in | Fill in | Include deposit |
| Accounting, tax and payroll compliance | Fill in | Fill in | Ask for a fixed monthly fee |
| Audit and annual filings | None | Fill in | Accrue monthly |
| Salaries and employer contributions | Fill in | Fill in | Include bonus and notice pay |
| Legal agreements and licences | Fill in | Fill in | Customer, supplier and lease contracts |
| US-side tax and reporting | Fill in | Fill in | CPA time for Form 5471 and credits |
| Contingency | Add margin | Add margin | Bank onboarding delay |
Costs US teams forget
- The first-year audit fee, which is due even with no revenue.
- Conversion spread on the dollar-to-rupee remittance.
- Withholding tax on payments to the US parent, which is a real cost. See repatriating profits.
- GST on management fees charged by the parent, paid under reverse charge by the Indian company.
- The cost of delay in opening the bank account while rent and salaries are already running.
- The US CPA's time to build the Form 5471 file.
- Travel and the time of your own people.
Questions to ask before accepting a quote
- What is included in the set-up fee: name approval, PAN, TAN, address, first auditor and the foreign investment filing?
- What is excluded, and is every exclusion listed?
- Is the quote in USD or INR, and who bears bank charges?
- Who files the first deadlines and are they priced?
- What happens if the registrar raises queries?
- What does it cost to keep the company compliant each month?
- Who will do the work, and can we speak to them?
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, Internal Revenue Service (US), Bureau of Industry and Security (US) and the Ministry of External Affairs (India).
Frequently asked questions
How much does it cost to set up a subsidiary in India from the US?
AU Corporate's fee is USD 750 to USD 1,000 for share capital up to ₹10 lakh, for the incorporation work only. Government charges, bank charges, office, audit and compliance are separate.
Is there a minimum capital?
No statutory minimum for a private limited company. Size it to your 12 to 18 month plan.
What is ₹10 lakh in dollars?
₹10 lakh is roughly USD 10,500 at an indicative ₹95 per dollar (late-2026 level; check the live rate before remitting).
Does the set-up fee cover annual compliance?
No. Accounting, tax, payroll and audit are priced against your plan.
Are there US-side costs?
Yes: notary and apostille for documents, and the US CPA's work on Form 5471 and the foreign tax credit.
What recurring costs start in year one?
Registered office, accounting, GST and TDS, payroll, statutory audit, annual filings, the tax return and, where it applies, a transfer pricing report.
Are bank charges included?
Usually not. Ask who bears remittance charges and the conversion spread.
Why is the audit due with no revenue?
A company must have its accounts audited and filed every year whether or not it trades.
How do I get a costing for my plan?
Use the costing tool on the main guide or send us the structure, headcount, sector and shareholders.
Related guides
How Long Does a US Company Take to Set Up in India? A Realistic Timeline from Decision to First Invoice, with Delaware Documents and US Time Zones
A schedule for a US parent: US documents and apostille, Indian incorporation, bank onboarding across a 9.5 to 12.5 hour time difference, remittance and the 60-day and 30-day deadlines, plus what to do when a customer deadline forces speed.
Read the guide →Incorporation process
The online steps from name approval to the certificate.
Read the guide →Funding and FC-GPR
How to bring in capital and report it to the Reserve Bank.
Read the guide →Compliance calendar
Annual and monthly filings for an Indian subsidiary.
Read the guide →Sources
Last updated 2 November 2026. General information only, not legal or tax advice. Indian and US rules change often; confirm current requirements before acting.