India Company Incorporation

For a foreign company planning to establish a presence in India, incorporating an Indian entity is only the beginning. Where the proposed Indian entity will have foreign ownership or receive funds from a non-resident investor, the transaction also needs to be structured and managed in accordance with India’s foreign exchange regulations. The Foreign Exchange Management Act, 1999 (FEMA) provides the overarching framework for regulating foreign exchange transactions in India. For foreign investment into an Indian company or Limited Liability Partnership (LLP), the FEMA framework operates through the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, the relevant RBI regulations and directions, and applicable foreign direct investment (FDI) policy. The RBI’s reporting framework has also been amended periodically, including amendments in 2025 and 2026. To whom FEMA is applicable FEMA applies to business or individual involved in foreign exchange transactions or cross border financial dealings – Indian businesses receiving Foreign direct investments or making investments abroad. Indian residents sending money abroad for investments, education, travel etc Foreign companies operating in India through a branch office, liaison office, project office. Any branch, agency, or office located outside India that is owned or controlled by a person resident in India Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) when they engage in transactions involving Indian assets, such as buying real estate, or making cross-border remittances. FEMA applies when individuals or entities engage in transactions involving foreign exchange, foreign securities, or cross-border payments, with timing for individuals depending on a residential status of more than 182 days of physical presence in India during the preceding financial year. For businesses, FEMA applies from the exact moment an enterprise engages in any cross-border commercial transaction, which includes exporting services, importing goods, raising foreign capital, or establishing overseas branches. For a foreign company entering India, FEMA compliance can broadly be viewed as a lifecycle covering entry, investment, ongoing operations, reporting and eventual exit. 1. Start with the proposed India structure The first FEMA consideration is determining the appropriate form of presence in India. A foreign business may consider an Indian private limited company, LLP, branch office, liaison office or project office, depending on the nature of its proposed activities and commercial objectives. The FEMA implications can differ depending on the structure selected. Where the proposed structure involves foreign investment, it is important to assess the applicable FDI policy, sectoral restrictions, investment limits, entry routes and sector-specific conditions before the investment is made. For certain sectors, foreign investment may be permitted under the automatic route, while other sectors or specific circumstances may require prior government approval. The proposed business activities should therefore be reviewed at the outset rather than after incorporation. 2. Assess the foreign investment before bringing in funds Once an Indian company has been selected as the entry vehicle, the proposed investment needs to be examined from a FEMA perspective. This includes determining: Who will be investing in the Indian entity; The proposed percentage of foreign ownership; The nature and amount of the proposed investment; Whether the sector permits foreign investment and under which route; Whether any sector-specific conditions apply; and Whether any government approval or additional regulatory requirements are applicable. This assessment is particularly important because the permissibility of foreign investment depends not only on the percentage of foreign ownership but also on the sector and nature of business activities. 3. Bringing the initial capital into India Once the structure and investment route have been established, the foreign investor can fund the Indian entity in accordance with the applicable FEMA requirements. For equity investment, the consideration is generally required to be received through permitted banking channels or from an account permitted under the FEMA framework. The Indian entity must also comply with the prescribed process for issuing equity instruments to the non-resident investor. This makes coordination between the foreign investor, Indian company, authorised dealer bank and professional advisors important from the beginning. Documentation relating to the remittance, investor, share issuance and valuation should be maintained as part of the company’s FEMA records. 4. Complete the prescribed RBI reporting Receiving foreign investment also triggers specific reporting requirements. One of the key filings is Form FC-GPR (Foreign Currency-Gross Provisional Return). An Indian company issuing equity instruments to a person resident outside India in a transaction that qualifies as FDI is required to report the issue through FC-GPR within the prescribed timeline. Under the current reporting regulations, the filing is generally required within 30 days from the date of issue of the equity instruments. The reporting process requires the company to provide information relating to the investment and supporting documentation. Delays in prescribed FEMA reporting can result in a late submission fee or other consequences, depending on the nature of the reporting requirement and applicable regulations. 5. Keep track of downstream investment FEMA compliance does not necessarily stop with the initial investment. If the Indian company subsequently invests in another Indian entity, the transaction constitute downstream investment and can trigger additional FEMA requirements. This becomes particularly relevant where a foreign-owned or foreign-controlled Indian establishes subsidiaries or invests in other Indian businesses. The ownership and control structure should therefore be reviewed before undertaking investments to determine whether the downstream investment rules and related conditions apply. 6. Manage ongoing FEMA reporting FEMA compliance is an ongoing obligation and not a one-time filing at the time of incorporation. One of the principal annual requirements is the Annual Return on Foreign Liabilities and Assets (FLA). An Indian company or LLP meeting the applicable criteria for foreign investment or overseas investment is required to report its foreign liabilities and assets to the RBI. The FLA return is generally required to be submitted by 15 July each year, based on the prescribed reporting framework. The return captures information relating to the entity’s foreign liabilities and assets and forms part of the RBI’s external sector statistics. Maintaining accurate records throughout the year therefore makes the annual FEMA reporting process significantly easier. 7. Consider FEMA when dealing with the overseas parent For a foreign-owned Indian … Read more

A branch office and a private limited subsidiary occupy fundamentally different positions on the risk and tax spectrum in India. The structural choice a foreign company makes at entry shapes nearly every consequential decision that follows, from applicable tax rates to the scope of legal liability in the event of a dispute. A branch office is legally an extension of its foreign parent, taxed as a foreign company, and restricted to a defined set of permitted activities under Reserve Bank of India (RBI) rules. A private limited subsidiary, by contrast, is a distinct Indian legal entity incorporated under the Companies Act, 2013, taxed at domestic company rates, and authorised to conduct general commercial operations. An eligible domestic company may also elect the concessional rate under Section 115BAA of 22 percent, plus applicable surcharge and cess. These two structures are not minor variations of one another. They represent separate legal categories, and that distinction produces material differences in tax treatment and liability exposure. At India Company Incorporation (ICI), foreign companies are guided through this structural decision before any filing commences. Reversing an incorrect structure after establishment carries considerably greater cost than establishing the right foundation from the outset. This is not primarily a compliance question. It is a liability question, framed by regulatory procedure and statutory requirements. Expert view: “Where a foreign business anticipates substantive operating activity in India, the liability ring-fence of a subsidiary is often the decisive factor, not the tax rate alone” Branch Offices Render the Parent Company Directly Liable A branch office holds no separate legal identity from its foreign parent. Any liability the branch incurs in India attaches directly to the parent company, not to a ring-fenced Indian entity. That liability may arise from: A contract dispute A tax demand A supplier claim No corporate veil exists to rely upon, because a branch is not a separate corporation in India. It is the same company conducting operations from a different address. Foreign exchange regulations further constrain what a branch office may undertake. Manufacturing is generally prohibited, and permitted activities must remain within an approved list, such as export or import trade, research, or acting as a buying or selling agent for the parent. Prior regulatory approval is required before operations may commence. For current readers, this position remains anchored in the FEMA framework and the RBI approval process as it stands in 2026. Readers requiring setup procedures may refer to the site’s branch office registration or RBI approval service page. Private Limited Subsidiaries Insulate the Parent from Indian Liability A private limited subsidiary is a distinct legal person under the Companies Act, 2013. Accordingly, the foreign parent’s exposure is ordinarily limited to the capital invested in the Indian entity. Where the subsidiary faces litigation, a tax dispute, or a failed vendor contract, the claim is directed against the Indian entity’s own assets, not against the parent’s balance sheet in its home jurisdiction. This legal separation is the principal advantage of incorporating a subsidiary rather than establishing a branch. It enables a foreign company to enter the Indian market, engage staff, execute leases, and enter into commercial contracts without exposing its worldwide assets to risk each time an operational decision is made in India. Tax Treatment Differs Because the Two Structures Are Classified as Different Taxpayer Categories The tax differential between a branch and a subsidiary exists because Indian tax law does not treat them as equivalent taxpayer categories. A branch office is assessed under the Income Tax Act as a foreign company on income earned in India. A private limited subsidiary is assessed as a domestic Indian company. Because a branch is classified as a foreign company, it cannot access the concessional regimes available to domestic companies. This distinction affects more than the headline rate. It governs how profits are assessed, how funds may be remitted to the parent, and the extent of tax planning available under Indian law. A domestic company falls under a different part of the Income Tax Act from a foreign company’s Indian branch, and that separation carries significant practical consequences. The 22 percent concessional rate under Section 115BAA, noted above, applies to eligible domestic companies that elect that regime, before applicable surcharge and health and education cess. The base rate for foreign companies under the Income-tax Act, 1961, First Schedule rate structure, is 40 percent, before surcharge and cess. These categories are not interchangeable, which is precisely why the choice of structure carries such material significance. Readers should verify current rates through the Income-tax Department’s published rate schedule. Choosing Between a Branch and a Subsidiary Is a Matter of Purpose, Not Preference The appropriate structure depends on the foreign company’s intended activities in India, not on which option appears more convenient to establish. Several questions tend to resolve the matter: Does the intended activity fall within RBI’s permitted branch categories? Export or import trade, research, and acting as the parent’s buying or selling agent are consistent with branch operations. General commercial activities, manufacturing, or broad service delivery are not. What level of liability exposure is acceptable? A branch places the parent’s own assets at risk for Indian operations. A subsidiary confines that risk to the Indian entity. Does the company intend to raise capital or admit local investors in India? A private limited subsidiary can issue shares and accommodate Indian shareholders. A branch cannot. Is the India presence intended to be narrow and defined, or a substantive long-term operation? Branches serve a limited, specific scope. Subsidiaries are suited to a business structured for growth. Addressing these four questions with precision generally allows the appropriate structure to present itself clearly. Practical Implications for a Foreign Company Entering India A foreign company planning anything beyond a narrow, liaison-style presence in India will generally be better served by a private limited subsidiary. For most operating businesses, the separation of liability alone justifies the additional incorporation step. It prevents business risk incurred in India from reaching the parent’s home-country balance sheet. A branch office … Read more

A Canadian SaaS company setting up an Indian subsidiary is required to file documentation with the Ministry of Corporate Affairs (MCA) through a consolidated online form known as SPICe+. At least one board director must hold a Director Identification Number (DIN), a permanent identifier issued by the MCA to any individual serving as a director of an Indian company. While most legal advisers convey this much to founders, the precise sequence of documents and procedural steps is frequently left unaddressed. This guide provides a clear and practical account of that process. The incorporation framework is well-established. Thousands of foreign companies complete it each year, and the steps remain consistent regardless of where the parent company is headquartered. Canada does not carry a separate or expedited procedure. The statutory requirements outlined below apply equally to a Toronto-based SaaS founder as they do to one operating from Austin or Singapore. What Does The MCA Actually Require To Incorporate An Indian Subsidiary? The MCA operates through a single consolidated filing called SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus), which combines name reservation and incorporation into one submission. Part A of the form reserves the company name. Part B addresses incorporation itself, along with linked applications for DIN, the company’s tax registrations (PAN and TAN), its GST number, and its provident fund and employee insurance registrations. Prior to SPICe+, each of these applications had to be submitted separately to different government departments. This consolidation is the principal reason incorporation now proceeds more efficiently than it once did. What previously required 15 to 30 working days before 2020 typically takes 3 to 7 working days under the current framework, once documentation is in order. That reduced timeline, however, applies only once all documents are prepared and verified. For a Canadian parent company, the more time-intensive stage is typically the apostillation of Canadian corporate documents, the official certification process required for documents to be accepted by Indian authorities under international convention. How Long Does It Actually to Incorporate a company From Canada? A realistic timeline for a Canadian SaaS company incorporation runs 3 to 4 weeks from commencement to completion, once apostille requirements for the parent company’s documents are factored in. The total breaks down into the following stages: Digital Signature Certificate and DIN: 3 to 5 working days Name approval through the MCA’s RUN service: 2 to 4 working days Drafting the company’s constitutional documents and filing SPICe+: 5 to 7 working days Certificate of Incorporation issuance: 3 to 5 working days The apostille step is the stage Canadian founders most frequently underestimate. Canadian directors are required to have their identity documents, and in many cases board resolutions from the parent company, apostilled under the Hague Convention before an Indian registrar will accept them. Accounting for this lead time during the initial planning phase avoids unnecessary delays to a projected launch date. Citation detail: India Company Incorporation, 2026 process breakdown for incorporating an Indian subsidiary from Canada. DIN Guide: What Is A DIN, And Who On The Board Actually Needs One? A Director Identification Number, or DIN, is a unique identifier issued by the MCA to any individual seeking to serve as a director of an Indian company. It is obtained by filing Form DIR-3. Every director named on the Indian subsidiary’s board requires one, irrespective of whether they are based in Canada, India, or any other jurisdiction. The DIN is a permanent credential. Once assigned, it remains valid across every Indian company the individual directs throughout their professional career. A Canadian founder who subsequently establishes a second Indian entity is not required to repeat this step for directors who already hold a DIN. One statutory requirement tends to catch Canadian founders off guard more than any other. Under the Companies (Appointment and Qualification of Directors) Rules, at least one director on the board must be a resident of India, defined as an individual who has spent a minimum of 182 days in the country during the preceding calendar year. A board composed entirely of Canada-based directors cannot satisfy this requirement independently. Companies typically address this by appointing a local nominee director, or by having a Canadian founder accumulate the requisite time in India over time. Directors are also required to hold a Class 3 Digital Signature Certificate (DSC) in order to execute filings electronically. These are issued by certifying authorities such as eMudhra, Sify, or Capricorn. The DSC is distinct from the DIN, and both must be obtained before the SPICe+ submission can proceed. What Happens After Incorporation? The Filings That Never Stop Incorporation marks the commencement of a Canadian company’s compliance obligations in India, not the conclusion of them. Once the subsidiary is constituted, several recurring filings come into effect. Once the subsidiary is operational, the following recurring obligations come into effect: Form FC-GPR, filed with the Reserve Bank of India (RBI) within 30 days of allotting shares to the Canadian parent, reporting the foreign investment through RBI’s FIRMS portal. Failure to meet that deadline attracts a late fee, calculated as a base amount plus a percentage of the transaction value for each day of delay, under FEMA’s foreign investment regulations. Annual return (Form MGT-7 or MGT-7A) and financial statements (Form AOC-4), filed annually with the Registrar of Companies. Non-compliance attracts a penalty of ₹100 per day per form, with no upper limit, according to MCA compliance guidance for the 2026 to 2027 financial year. A filing left unaddressed for several months continues to accrue penalties on a daily basis, with no ceiling. Directors’ annual KYC filing. Non-compliance results in the MCA deactivating the director’s DIN, which then requires payment of a ₹5,000 reactivation fee before that individual can execute filings or resolutions. An inactive DIN can effectively suspend board decision-making until the matter is resolved. This is the pattern India Company Incorporation (ICI) observes costing companies the most. Founders treat incorporation as the finish line, then find themselves in breach of a filing obligation several months later because no … Read more

The tax and liability differences between a branch office and a subsidiary are structural, not cosmetic. One is a direct extension of the parent, taxed and exposed accordingly. The other is a separate Indian company that ring-fences liability and can access domestic tax treatment unavailable to a branch. Determining the correct structure at the outset avoids the considerably more costly process of restructuring at a later stage. Foreign businesses are strongly encouraged to seek expert guidance before committing to either structure, ensuring regulatory adherence from the point of entry and establishing a subsidiary company or other entity that remains compliant and scalable as their Indian operations develop. A branch office is taxed as a foreign company, while a private limited subsidiary is taxed as an independent Indian domestic company carrying its own separate liability protection. Those distinctions in tax treatment and liability exposure, not the documentation involved in establishing either structure, are what should determine the form a foreign business adopts when entering the Indian market. Conflicting guidance on this point is common, because the two structures address fundamentally different questions. A branch office answers whether a foreign entity can operate in India under its existing legal identity. A private limited subsidiary answers whether that entity requires a separate Indian company capable of raising capital, contracting independently, and containing its exposure. Tax treatment and liability both follow directly from that structural choice. What’s The Core Legal Difference Between A Branch Office And A Subsidiary? A branch office carries no separate legal identity of its own. It is the foreign parent operating in India under a different name, which means the parent bears direct responsibility for whatever the branch undertakes, executes, or owes. A private limited subsidiary, by contrast, is incorporated in India under the Companies Act, 2013, through the Ministry of Corporate Affairs (MCA), as a distinct legal person in its own right. It can own property, initiate or defend legal proceedings, and enter into contracts in its own name. Liability ordinarily remains with the subsidiary, insulating the parent’s broader assets from exposure. That distinction, between an entity that is legally the parent and one that is legally separate from it, is precisely why the tax treatment diverges as well. In practice, this legal separation forms the foundation on which a subsidiary company operates in India as a distinct business entity. How Does India Tax A Branch Office Differently From A Subsidiary? Branch offices are taxed under the foreign company regime, and private limited subsidiaries are taxed as domestic companies. This represents a structurally different framework, not merely a variation in applicable rates. The practical differences break down as follows: – Concessional schemes: Foreign companies, including branch offices, fall outside concessional domestic tax schemes such as Section 115BAA, which are available only to entities incorporated in India. For Assessment Year 2026-27, the Section 115BAA rate remains 22% plus applicable surcharge and health and education cess for eligible domestic companies, while foreign companies continue to be taxed at the rate prescribed under the relevant Finance Act. (Source incometax.gov) – Subsidiary eligibility: A subsidiary company may, subject to prescribed conditions, opt into the lower domestic company tax regime. – Branch eligibility: A branch office cannot opt into that regime, as it was never incorporated in India. – Rate updates: Current rate figures for both categories are revised through each year’s Finance Act, and businesses should confirm the applicable rate for the relevant assessment year rather than relying on figures carried forward from prior filings. Profit repatriation follows a comparable distinction. A subsidiary company distributes profit to its foreign parent as dividends, governed by the Double Taxation Avoidance Agreement (DTAA) between India and the parent’s home jurisdiction. A branch remits profit directly, which is treated under a separate framework. Either route may attract withholding tax, and the applicable rate depends on the specific DTAA in force, a figure best confirmed with a qualified tax advisor prior to repatriation. Which Structure Creates More Liability Exposure For The Foreign Parent? A branch office exposes the foreign parent directly, as the branch and the parent constitute the same legal entity. Any claim brought against the branch in India is, in effect, a claim against the parent company itself. A private limited subsidiary limits that exposure considerably. As a separate legal person, the subsidiary’s debts and legal obligations generally remain with the subsidiary, keeping the parent’s assets beyond the reach of Indian creditors or claimants. Exceptions do exist: courts may, in certain circumstances, disregard that separation and pierce the corporate veil. This consideration often becomes the deciding factor for businesses that have moved beyond the initial market-assessment phase. A liaison presence carries limited risk under either structure. A branch that begins executing large contracts, hiring at scale, or incurring local debt, however, introduces risk the parent may not wish to carry on its own balance sheet. For that reason, many expanding businesses prefer a subsidiary company once operations become substantial. What Approvals Does Each Structure Need? The approval pathway differs substantially between the two options, a distinction that frequently surprises foreign businesses entering India: – Branch office: Requires Reserve Bank of India (RBI) approval under India’s foreign exchange regulations, and is restricted to a defined list of activities under the liaison, branch, or project office categories. – Private limited subsidiary: Incorporated through the MCA under the Companies Act, 2013, with considerably fewer restrictions on permissible activities once registered. – Ongoing compliance: A subsidiary company carries its own company-registry filings, board and secretarial obligations, and statutory audit requirements, all independent of the parent’s home-jurisdiction filings. – Activity scope: A branch office generally cannot undertake full-scale manufacturing or retail trading in the manner a subsidiary can, as its permitted activities are fixed at the approval stage. A branch office may obtain approval more readily for a narrow purpose but becomes difficult to expand once operational. A subsidiary company demands more upfront structuring, yet affords the business the flexibility to grow into new activities without returning to the regulator … Read more

A Canadian SaaS founder establishing an Indian subsidiary must navigate a defined sequence of regulatory steps: obtaining a Class 3 Digital Signature Certificate (DSC), applying for Director Identification Numbers (DINs) through the SPICe+ portal, appointing at least one resident director, and maintaining the ongoing MCA filing calendar. This guide addresses each of those steps in the order they arise, enabling the company to meet its statutory requirements from the outset and avoid incorporation delays. Legal advisers frequently recommend the subsidiary structure without addressing the operational mechanics that follow. Questions concerning which individuals execute which documents, which forms are submitted to which authority, and how often these obligations recur are precisely where most incorporation timelines encounter difficulty. India permits 100% foreign ownership of SaaS and IT services companies under the automatic route, according to KNM India’s 2026 review of India entry strategy for fintech and SaaS firms. No prior approval from the Reserve Bank of India (RBI) or the government is required to establish the entity. It is the documentation, not the ownership structure, that tends to generate friction. What Is A DIN And Why Does Every Director Need One? A Director Identification Number, or DIN, is a unique identifier assigned by the Ministry of Corporate Affairs to any individual serving on the board of an Indian company. Every director, whether Indian or Canadian, must obtain one prior to appointment, according to the MCA and IndiaFilings’ 2026 guide to the DIN process. For a new incorporation, up to three DINs can be requested within the SPICe+ form, the consolidated application used to register a new Indian company. Auto-allotment typically occurs within one to three business days, per Global Law Experts and RegisterKaro’s 2026 guidance. Directors appointed after incorporation must file Form DIR-3 separately. Every director, including those resident in Canada, must also execute Form DIR-2, a formal consent to act as director. Where this signature occurs outside India, as it will for founders based in Toronto or Vancouver, the form must be notarised before submission. One statutory requirement that frequently surprises Canadian founders is the mandatory use of a digital signature. Foreign directors must obtain a Class 3 Digital Signature Certificate (DSC) from a licensed Indian certifying authority before any DIN application or incorporation paperwork can be submitted, given that all MCA filings require digital authentication. Internal link suggestion: Add a link here to the site’s SPICe+ incorporation process page on the text SPICe+ form. Does India Require A Resident Director For A Canadian-Owned Subsidiary? Yes. Section 149(3) of the Companies Act, 2013 mandates that every Indian private limited or public company maintain at least one director who has been physically present in India for 182 days or more during the financial year, which runs from April to March. These days need not be consecutive; they are counted across the year. For a company incorporated partway through the financial year, this requirement applies on a proportionate basis from the date of incorporation. This rule does not apply uniformly across all entry structures. Liaison offices, branch offices, and project offices are exempt from the resident director requirement. These entities instead require an authorised representative resident in India to manage correspondence with the RBI and the Registrar of Companies (RoC), according to Global Law Experts’ 2026 guide on registering a foreign company in India. For most Canadian SaaS companies, the practical approach involves either appointing a trusted local hire or engaging a nominee director service, as relocating a Canadian director to India for six months each year is generally not operationally viable. What Documents Do Canadian Directors Need To Provide? Canadian directors must furnish a defined set of notarised and apostilled documents before any DIN or incorporation filing can proceed. As Canada is a signatory to the Hague Apostille Convention, directors must obtain an apostille rather than embassy attestation. This is a more efficient process than that faced by founders from non-member countries. The core document checklist, drawn from Treelife’s and Commenda’s 2026 guides on registering an Indian company from abroad, comprises the following: Passport, notarised and apostilled Proof of address, such as a bank statement or utility bill, notarised and apostilled, and generally dated within the preceding two months A recent photograph in JPEG format for the MCA filing A board resolution authorising the appointment, on company letterhead, where a nominee director is engaged India’s Ministry of External Affairs (MEA) charges a fixed government apostille fee of ₹50 per document, though total costs including state attestation, agency fees, and courier typically range between ₹400 and ₹1,500 per document. When notarisation, state attestation, and MEA processing are taken into account, the complete procedure generally requires seven to fifteen working days, according to TrueWay International’s 2026 attestation guides. What Changed With DIR-3 KYC In 2026? The most significant change affecting Canadian founders concerns DIR-3 KYC, the identity verification that every director must complete to maintain an active DIN. Under the Companies (Appointment and Qualification of Directors) Amendment Rules, 2025, notified by the MCA and effective March 31, 2026, this verification is no longer an annual obligation. KYC must now be filed once every three years via Form DIR-3 KYC-Web. This does not, however, permit directors to disregard their DIN between filing cycles. Any change to a director’s mobile number, email address, or residential address triggers a mandatory update filing within 30 days, regardless of where the director sits within the three-year cycle. Failure to file carries immediate consequences: the DIN is deactivated. Reactivating a DIN, or filing late, carries a flat ₹5,000 penalty under the Companies (Registration Offices and Fees) Amendment Rules, 2026, gazetted in April 2026. Updating KYC details outside the standard cycle, separate from a late filing, costs ₹500 per update. What Ongoing MCA Filings Should A Canadian Parent Expect? Following incorporation, an Indian subsidiary faces a continuous schedule of MCA filings; post-incorporation compliance is not a one-time registration duty. The most consequential filings cluster around the Annual General Meeting (AGM), and non-compliance attracts penalties that accumulate daily. For the 2025 to 26 … Read more

Press Note 2 (2026 Series), issued by India’s Department for Promotion of Industry and Internal Trade (DPIIT) on 15 March 2026, reformed the blanket FDI restrictions that Press Note 3 imposed in 2020 on investments linked to land border countries (LBCs), principally China. While the UAE is not a land border country, UAE-based investors are far from exempt. Any fund, holding company, or NRI vehicle incorporated in the UAE that carries Chinese beneficial ownership above a 10% threshold now falls within the government approval route. The concept that defines this regulatory architecture, and the one this article examines throughout, is beneficial ownership tracing: the mechanism that determines whether capital routed through Dubai, Abu Dhabi, or any other non-LBC jurisdiction still triggers India’s investment screening framework. Why Does Press Note 2 Affect Investors Who Are Based In The UAE? Beneficial ownership tracing requires India’s regulators to look through the immediate investor entity and identify who ultimately controls or benefits from the capital. A venture capital fund domiciled in DIFC or ADGM with a Chinese limited partner holding more than 10% beneficial ownership will require government approval before investing in India, regardless of the fund’s Emirati registration. This challenge predates Press Note 2. Under the original Press Note 3 (2020), any beneficial ownership by an entity in a land border country triggered mandatory government approval, with no minimum threshold and no defined decision timeline. Between FY 2020-21 and FY 2021-22, investment proposals worth INR 756.91 billion (approximately US$8.1 billion) were submitted under these rules. Authorities approved only INR 136.25 billion (US$1.45 billion), an effective non-approval rate of roughly 82% by value (CRISIL Market Intelligence Report, March 2026, cited in India Briefing). That bottleneck suppressed legitimate global capital flows. Many UAE-domiciled funds carrying even minimal Chinese LP exposure chose to avoid India entirely rather than face an indefinite approval process. How Does Press Note 2 (2026) Change The Rules For Beneficial Ownership? Press Note 2 introduces three structural reforms that directly affect UAE-based investors with LBC exposure. First, it establishes a 10% beneficial ownership threshold. Investments where no single LBC-linked entity holds 10% or more of beneficial ownership may proceed through the automatic route, with no government approval required. The definition of beneficial ownership is anchored in Rule 9(3) of the Prevention of Money Laundering Act (PMLA), 2002, providing statutory precision that was absent under Press Note 3. Second, for investments that do exceed the 10% threshold but involve minority, non-controlling stakes, the framework introduces a 60-day processing timeline for priority sectors. This replaces the open-ended waiting period that characterised Press Note 3 approvals. Third, the FEMA (Non-Debt Instruments) Amendment Rules, codified across three tranches on 1 May, 2 May, and 12 June 2026, embed these changes into enforceable law rather than retaining them as policy guidance alone. Konark Bhandari, Fellow at Carnegie India’s Technology and Society Program, observed in April 2026: “The 10 percent automatic route threshold is modest, the sixty-day processing timeline introduces accountability, and the recognition that ambiguous beneficial ownership rules were deterring legitimate global investment is overdue. The key challenge is implementation” (Carnegie India, April 2026). What Is The Scale Of UAE Investment In India, And Why Does This Matter? The UAE ranked fifth as a source of FDI equity inflow into India during April to December FY 2025-26, contributing US$2.45 billion, roughly 5% of total FDI equity inflow in that period (DPIIT FDI Quarterly Factsheet, 2026). Cumulative Emirati FDI since 2000 stands at US$22.84 billion, placing the UAE among India’s seven largest cumulative investors. Bilateral merchandise trade between the two countries reached US$101.25 billion in FY 2025-26 (Middle East Briefing, 2026), having more than doubled since the Comprehensive Economic Partnership Agreement (CEPA) took effect in May 2022. During Prime Minister Modi’s visit in May 2026, the UAE pledged a headline investment of US$5 billion into India. These figures underscore the stakes. Should beneficial ownership tracing place even a fraction of UAE-sourced capital in regulatory limbo, the consequential cost is measured in billions, not millions. Which UAE Investment Structures Face The Highest Risk? Three categories of UAE-based investors should conduct immediate structuring assessments. Global private equity and venture capital funds domiciled in the UAE with Chinese LPs above the 10% threshold face mandatory government approval. Multi-family offices in Dubai holding pooled capital from diverse nationalities, including Chinese principals, must trace beneficial ownership through every layer of their structure. Sovereign or quasi-sovereign vehicles that co-invest alongside Chinese state-backed entities in joint ventures will need to demonstrate that Chinese beneficial ownership remains below the threshold, or submit to the approval route. Ankur Munjal, India Country Director at Dezan Shira & Associates, noted in 2026: “Investors evaluating eligibility under India’s FDI rules should conduct a detailed beneficial ownership and structuring assessment before entry. Advisory support can help determine automatic route eligibility and manage approval timelines.” King, Stubb & Kasiva, writing in Legal500 in June 2026, characterised the new framework as “simultaneously more open and more sophisticated than what it replaced.” Did Press Note 3 Actually Achieve Its Objectives Before The Reform? The original restrictions succeeded at one narrow objective: limiting Chinese FDI. Total Chinese FDI into India since 2000 amounts to US$2.51 billion, or 0.32% of India’s cumulative equity inflows (Carnegie India, Konark Bhandari, April 2026). Yet India’s trade deficit with China grew from US$85 billion in 2023-24 to an estimated US$116 billion in calendar year 2025. Bhandari noted plainly: “The Press Note 3 restrictions succeeded in keeping Chinese capital out but did nothing to arrest the flood of Chinese goods inwards.” A March 2026 CRISIL market intelligence report projects that under the revised rules, Chinese investment as a proportion of India’s total FDI could gradually return to pre-restriction levels of around 2% (CRISIL, March 2026, cited in India Briefing). For UAE-based funds, this shift is consequential: capital that was previously blocked entirely now has a defined, if narrow, pathway into India. What Should UAE-Based Investors Do Now? Practical next steps centre on beneficial ownership tracing. Every UAE-domiciled entity considering Indian … Read more

FAST-DS 2026 provides a one-time opportunity for taxpayers to come forward and regularise foreign assets or pay taxes on income earned through Employee Stock Option Plans (ESOPs) and Restricted Stock Units (RSUs). These situations often arise from working abroad, maintaining small or inactive foreign bank accounts as a former student, holding overseas savings or insurance policies after returning to India or owning assets acquired during international assignments or deputations. Practical Applications of the FAST-DS 2026 Scheme FAST-DS 2026 is a limited-period scheme designed to help resident small taxpayers voluntarily declare foreign assets and income earned from overseas sources. The applicable tax depends on how and when the asset was acquired, while eligible participants can receive relief from penalties and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The scheme will remain available for six months from the date it is officially notified by the Central Government through the Official Gazette. Categories of Taxpayers to be Benefited by FAST-DS 2026 Resident taxpayers who failed to furnish their return of income under section 139 of the Income-tax Act, 1961 (Act). Resident taxpayers who failed to disclose foreign asset disclosure or foreign income in return of income filed under section 139 of Act before commencement of this scheme. Resident taxpayers have foreign assets or foreign income which have income escaping assessment within the meaning of section 147 of Act. The declaration may be filed with respect to foreign assets or foreign income and following amount payable by the taxpayer (declarant) under FAST-DS 2026: Sr. No. Type of assets or income Conditions Amount payable 1 Undisclosed asset located outside India or Undisclosed foreign income The aggregate value of the undisclosed asset located outside India and the undisclosed foreign income does not exceed Rs.1 crore a. 30% tax of the undisclosed value of the asset located outside India as on March 31, 2026. b. 30% tax on the undisclosed foreign income c. 100% of tax determined in above mentioned (a) and (b) 2 Foreign Asset acquired from income accruing / arising outside India by declarant when they were non-resident, but such foreign assets were not disclosed in disclosure of foreign assets in their Income-tax return on becoming resident or Foreign Asset acquired from income offered to tax in India, but disclosure of foreign assets in Income-tax Return were not disclosed by them The value of the asset located outside India does not exceed Rs. 5 crores Fee of Rs.1,00,000/- The following infographic outlines the steps for taxpayers to opt in respect of undisclosed foreign assets or foreign income in their return of income: How FAST-DS 2026 Supports Small Taxpayers? The income or amount of investment in the foreign asset which has been declared under FAST-DS 2026 / Small Taxpayers Scheme shall not be included in the total income of the taxpayer (declarant) for any Assessment year (AY) in Income-tax Return under Act or Black Money Act. This is provided that the declarant makes the payment of tax and fee determined under this FAST-DS 2026 / Small Taxpayers Scheme within an extended period of two months along with simple interest at the rate of 1% for every month. The taxpayer paid tax on foreign income or disclosed foreign assets disclosure scheme under FAST-DS 2026. There will be no rectification or revision of any assessment made under the Act or Black Money Act. Declarant shall not be entitled to claim any set off / relief in any appeal, reference or other proceeding in relation to any such assessment. The taxpayer shall not be entitled to any refund under tax paid under FAST-DS 2026. Upon making a declaration under FAST-DS 2026 and paying the applicable tax or fee, the taxpayer shall be granted immunity from any further levy of tax, penalty, or prosecution under the Black Money Act in respect of the income or assets so declared for FY 2025-26 or any preceding year. The Assessing Officer shall consider the declaration made by taxpayer by opting under FAST-DS 2026 while finalizing the assessments which are pending or ongoing assessment proceedings under Act or Black Money Act. FAST-DS 2026 shall not apply to the following categories: Any person directly or indirectly linked to proceeds of crime in respect of whom proceedings have been initiated or are pending under the Prevention of Money Laundering Act, 2002. Any person in relation to any income or asset relating to an AY for which assessment proceedings have been completed under the Black Money Act. Why Choose India Company Incorporation? Managing foreign asset and foreign income disclosures can often feel overwhelming, especially when reporting requirements have been missed in previous years. At India Company Incorporation, we help taxpayers understand their obligations and take the right steps under FAST-DS 2026. Whether it involves foreign bank accounts, ESOPs, RSUs, overseas investments or other foreign-sourced income, our team provides practical support throughout the disclosure process. Also, we ensure every step is handled with care from assessing eligibility and calculating taxes to preparing documents and filing declarations. Our focus is on making compliance straightforward, helping taxpayers regularise past non-disclosures, and enabling them to benefit from the relief available under the scheme. Conclusion FAST-DS 2026 is a compliance window open for resident individuals to regularize the disclosure of undisclosed foreign assets or income. It enables taxpayers to make payment of the applicable tax and, in doing so, obtain immunity from prosecution and penalty under the Black Money Act.

India and New Zealand signed a Free Trade Agreement (FTA) on April 27, 2026, granting Indian exporters full market access to New Zealand. Earlier, in March 2025, the two countries had announced the launch of negotiations for the agreement, which were concluded by December 2025, making it one of India’s fastest-negotiated FTAs. The agreement reflects a shared commitment to strengthening economic ties and delivering commercially meaningful outcomes within a relatively short timeframe. For foreign entities, the India–New Zealand FTA improves market access and tariff preferences, positioning New Zealand as a potential gateway to the wider Oceania and Pacific Island markets. Beyond trade in goods, the agreement also signals expanding opportunities in services and skilled mobility, further reinforcing India’s position as a reliable source of talent across priority sectors. The agreement will enter into force once both countries complete their respective domestic ratification procedures. In New Zealand, the agreement will be reviewed by the Parliamentary Foreign Affairs, Defence and Trade Committee, which will undertake a national interest assessment and public consultation before submitting its report for parliamentary consideration. This process is expected to take several months before the agreement is formally implemented. Tracing Growth in India-New Zealand Trade Relations India and New Zealand have developed a steadily deepening trade relationship, positioning New Zealand as India’s second-largest trading partner in Oceania and 11th-largest two-way trading partner globally. While bilateral trade remains selective in scale, its strategic importance has grown alongside stronger commercial and demographic linkages between the two economies. Recent trade trends highlight the growing commercial relationship between the two economies. Bilateral trade in goods and services reached approximately USD 2.4 billion in 2024. Merchandise trade alone recorded significant growth, reaching about USD 1.29 billion in FY 2024–25, reflecting strong year-on-year expansion in key export sectors. This growth is reinforced by New Zealand’s profile as a high-income, globally integrated economy, with a per capita income of USD 49,380 and total imports and exports of USD 47 billion and USD 42 billion, respectively, in 2024. For foreign enterprises, this underscores New Zealand’s role as a stable and sophisticated market within the Oceania region. New Zealand’s strong outward investment orientation further strengthens the bilateral dynamic. With nearly 8 per cent of GDP invested overseas annually and total offshore investments valued at USD 422.6 billion as of March 2025, the country represents a meaningful source of global capital and long-term partnerships for emerging markets such as India. Complementing trade and investment flows, a 300,000-strong Indian diaspora, accounting for nearly 5 per cent of New Zealand’s population, acts as a durable economic and cultural bridge. This community supports demand for Indian goods and services while facilitating business continuity, talent mobility, and cross-border collaboration, providing a robust foundation upon which the FTA builds. Key Benefits of India-New Zealand FTA The India–New Zealand Free Trade Agreement delivers a large set of advantages designed to deepen trade, facilitate services, and support cross-border investment. The elements of the FTA not only improve predictability but also improve access, long-term operating viability across both markets. The benefits outlined below frame the core outcomes of the FTA: Tariff Liberalisation The India–New Zealand FTA establishes a calibrated tariff framework that balances full export access with domestic safeguards. Upon implementation of the agreement, 100% of Indian exports will receive duty-free access to the New Zealand market, providing immediate certainty and improved competitiveness for Indian manufacturers and exporters. The agreement will come into effect after both countries complete their respective domestic ratification procedures. India, in turn, has offered market access across 70.03% of its tariff lines, while retaining 29.97% under the exclusion list to safeguard sensitive sectors. The liberalised tariff lines are structured as follows: 30% of tariff lines: Immediate elimination of customs duties, covering products such as wood, wool, sheep meat, and raw leather hides. 35.60% of tariff lines: Gradual duty elimination over periods of 3, 5, 7, and 10 years. This category includes petroleum oils, malt extracts, vegetable oils, selected electrical and mechanical machinery, and peptones. 4.37% of tariff lines: Tariff reductions (instead of full elimination), applicable to products such as wine, pharmaceutical products, polymers, aluminium, and articles of iron and steel. 0.06% of tariff lines: Subject to tariff rate quotas (“TRQs”), including products such as honey, apples, kiwi fruit, and albumins, including milk albumin. India has expressly excluded key sensitive products, including dairy and dairy derivatives, most animal products, select agricultural commodities, sugar, fats and oils, arms and ammunition, gems and jewellery, and certain copper and aluminium products. For foreign enterprises, this structure delivers clear timelines, predictable access, and a balanced liberalisation pathway aligned with long-term trade and sourcing strategies. Mobility and Education The FTA introduces a structured and predictable framework for talent mobility, with direct relevance for companies seeking access to skilled and globally mobile professionals. For the first time, New Zealand has signed an Annex on Student Mobility and Post-Study Work Visas, providing long-term policy certainty. Indian students are permitted to work up to 20 hours per week during studies, with assured post-study work options of up to three years for STEM bachelor’s and master’s graduates and up to four years for doctoral graduates, strengthening the future talent pipeline for employers. In parallel, the agreement establishes dedicated professional pathways, including a quota of 5,000 visas for skilled Indian professionals for stays of up to three years across priority sectors such as IT, engineering, healthcare, education, and construction, alongside recognised Indian professions including AYUSH practitioners, yoga instructors, chefs, and music teachers. Additionally, a working Holiday Visa quota of 1,000 places annually enables short-term mobility and early-career exposure. Collectively, these provisions enhance workforce planning flexibility and support cross-border talent strategies for enterprises operating across India and New Zealand. Services The FTA delivers New Zealand’s most comprehensive services market access offer to date, reinforcing the agreement’s relevance for services-led enterprises. Commitments have been undertaken across 118 service sectors, providing enhanced certainty and non-discriminatory treatment for Indian service providers. In addition, the agreement extends Most-Favoured Nation (MFN) treatment across approximately 139 services sub-sectors, ensuring … Read more

Stamp duty is a statutory levy imposed on specified legal and commercial instruments in India. It is charged on the instrument that records a transaction or creates, transfers, limits, extends, or extinguishes rights and liabilities. The framework is rooted in the Indian Stamp Act, 1899, but rates and procedures vary significantly across states, because many instruments fall within the state’s taxing powers. For businesses, stamp duty plays an important role even at the company incorporation stage. Duties are payable on key incorporation documents such as the Memorandum of Association (MoA) and Articles of Association (AoA), as well as on the authorised share capital. Proper payment of stamp duty is necessary to ensure the legal validity and registration of these foundational documents. The requirement is governed by the Indian Stamp Act, 1899 along with applicable state stamp laws. Indian Stamp Act, 1899 The principal legislation governing stamp duty in India is the Indian Stamp Act, 1899, which lays down the legal framework for instruments chargeable to duty, the manner and timing of stamping, adjudication of proper duty, and penalties for under-stamping. Stamp duty is levied on the instrument evidencing the transaction, rather than on the transaction itself. The Act also includes key compliance provisions covering liability to pay duty, the timing of stamping, impounding of insufficiently stamped instruments, and the possibility of curing deficiencies through payment of duty and penalty. Applicability of Stamp Duty Stamp duty becomes relevant in relation to specific incorporation documents and related corporate instruments. Common situations include: Memorandum of Association (MoA) and Articles of Association (AoA): stamp duty may be payable on these charter documents at the time of incorporation, subject to the applicable state stamp law and the company’s authorised share capital. SPICe+ and linked incorporation forms: where the incorporation process involves electronic filing, the stamp duty component may be collected through the Ministry of Corporate Affairs filing system in accordance with the relevant state or Union Territory rules. Declaration, authorisation, and incorporation-related instruments: certain declarations, authorisations, powers of attorney, or supporting documents executed for incorporation may attract duty if they are independently chargeable under the applicable stamp law. Share capital-linked duty: in many jurisdictions, the amount of stamp duty payable at incorporation is influenced by the authorised share capital stated in the incorporation documents. State-specific applicability: since stamp duty on incorporation documents is governed by state-specific provisions or adaptations, the duty and method of collection can differ depending on the state in which the registered office of the proposed company is situated. Accordingly, for the incorporation of a new company in India, the applicability and amount of stamp duty depend on the nature of the incorporation documents, the authorised share capital, the state or Union Territory linked to the registered office, and the way the documents are executed or filed. How Stamp Duty Is Calculated for Incorporating a New Company in India For a new company incorporation in India, stamp duty is calculated with reference to the incorporation documents and the applicable state or Union Territory rules linked to the proposed registered office. The amount is commonly determined based on the Memorandum of Association (MoA), Articles of Association (AoA), the type of company being incorporated, and, in many cases, the authorised share capital stated in the incorporation package. Not all companies have share capital (e.g., Section 8 entities use fixed rates or subscriber bases), and some states apply flat fees or caps. State or Union Territory of the registered office: the applicable stamp duty depends on the jurisdiction because incorporation-related stamp duty is largely state-specific. Authorised share capital: in many states, duty on the AoA or related incorporation instruments is linked to the authorised share capital, sometimes subject to a minimum amount, slab, or maximum cap. Type of company: the duty treatment may vary depending on whether the entity is a private company, public company, One Person Company, or a company without share capital. Specific incorporation documents: different duty amounts may apply to the MoA, AoA, SPICe+ linked forms, or other supporting instruments that are independently chargeable. A practical way to determine the stamp duty payable at incorporation is to follow these steps: Identify the type of company being incorporated and confirm whether it has share capital. Determine the proposed state or Union Territory of the registered office. Confirm the authorised share capital to be stated in the MoA, if applicable. Check the applicable duty structure for the MoA, AoA, and linked incorporation forms under the relevant state rules. Verify the amount reflected through the MCA filing workflow or the relevant stamping mechanism before final submission. Stamp duty payable at the time of incorporation primarily depends on the registered office jurisdiction, the authorised share capital (if applicable), and the incorporation documents that are chargeable under the relevant state regulations. Since stamp duty on incorporation is state-specific, there is no uniform amount across India. The applicable duty should be verified against the relevant state stamp schedule and the figures generated during the Ministry of Corporate Affairs incorporation filing process to ensure accuracy and avoid delays. For example, stamp duty on incorporation documents for a private limited company varies across states and is generally linked to the authorised share capital stated in the incorporation documents. If a private limited company is incorporated with an authorised share capital of ₹10,00,000, the stamp duty payable would differ depending on the state in which the company is registered. In Maharashtra, the stamp duty payable on the MoA is typically around ₹2,000 and on the AoA around ₹1,000, resulting in an approximate total of ₹3,000. In Karnataka, the duty on the MoA may be around ₹1,000 and on the AoA around ₹500, resulting in an approximate total of ₹1,500. In Delhi, the stamp duty may be comparatively lower, with around ₹200 payable on the MoA and about ₹300 on the AoA, resulting in a total of approximately ₹500. These amounts are indicative examples from a few states. Stamp duty on incorporation documents differs from state to state, as each state … Read more

Uttar Pradesh has outlined a clear vision to establish itself as a leading destination for Global Capability Centres (GCCs), supported by a policy framework that emphasises innovation, advanced technology services, and high-value research and development. Through a combination of investment-linked incentives, workforce support measures, and infrastructure-related benefits, the state aims to create a competitive environment for both emerging and large-scale GCC operations. For organisations evaluating expansion opportunities in India, the policy presents a structured and potentially cost-efficient platform for long-term growth. Advantages of Uttar Pradesh for GCC Investments Uttar Pradesh offers several structural advantages that strengthen its appeal as a destination for GCC investments. The state benefits from a large and diverse talent pool, with a steady supply of engineering, management, and technical graduates. Its proximity to the National Capital Region, particularly through established business centres such as Noida and Greater Noida, enhances accessibility and business connectivity. Uttar Pradesh also offers relatively competitive real estate and operating costs when compared with more established GCC hubs, while ongoing investments in expressways, airports, and industrial corridors continue to improve physical and commercial infrastructure across the state. Who Can Qualify? The policy classifies eligible units into two categories: Level 1 GCCs and Advanced GCCs. Eligibility depends on the level of capital investment and the number of employees generated, with separate thresholds for Gautam Buddha Nagar and Ghaziabad compared to the rest of the state. Level 1 GCC: Requires a minimum capital investment of ₹20 crore in Gautam Buddha Nagar and Ghaziabad, or ₹15 crore in the rest of Uttar Pradesh. Employment generation thresholds are 200 or more employees in Gautam Buddha Nagar and Ghaziabad, and 100 or more employees in other districts. Advanced GCC: Requires a minimum capital investment of ₹75 crore in Gautam Buddha Nagar and Ghaziabad, or ₹50 crore in the rest of Uttar Pradesh. Employment generation thresholds are 500 or more employees in Gautam Buddha Nagar and Ghaziabad, and 300 or more employees in other districts. Incentives The GCC Policy provides a wide range of incentives covering payroll, capital investment, infrastructure, operations, and talent development. Payroll Subsidy The subsidy will be paid in the form of reimbursement for a period of 03 years, up to a maximum of ₹10 crore per year for a Level-1 unit, and up to a maximum of ₹20 crore for Advanced GCC, towards on-roll employees with continuous enrolment for at least 1 year. Year of Operations GB Nagar & Ghaziabad districts Rest of UP Permissible Payroll Subsidy Percentage Maximum Limit Permissible Payroll Subsidy Percentage Maximum Limit First 35% 35% of the employee’s salary, or a maximum of ₹5 lakh of the total annual salary, whichever is less. 50% 50% of the employee’s salary, or a maximum of ₹7 lakh of the total annual salary, whichever is less. Second 30% 30% of the employee’s salary, or a maximum of ₹4 lakh of the total annual salary, whichever is less. 40% 40% of the employee’s salary, or a maximum of ₹6 lakh of total annual salary, whichever is less. Third 25% 30% of the employee’s salary, or a maximum of ₹3 lakh of the total annual salary, whichever is less. 30% 30% of the employee’s salary, or a maximum of ₹5 lakh of the total annual salary, whichever is less. Fourth – – 25% 25% of the employee’s salary, or a maximum of ₹4 lakh of the total annual salary, whichever is less. Capital Subsidy Capital subsidy of 25% of Eligible Capital Investment (ECI)*, up to INR 10 crore for Level 1 GCCs and INR 25 crore for Advanced GCCs, disbursed over a period of seven years. * Eligible Capital Investment (ECI) refers to the capital investment made by an eligible unit during the policy’s eligible investment period after the policy becomes effective. If a company begins its capital investment after the policy’s effective date, the entire investment will be considered as ECI. However, if the company started investing before the policy came into effect, at least 80% of the total capital investment must be made after the policy’s effective date for it to qualify as Eligible Capital Investment under the policy. Front-end land subsidy Subsidy of 30–50% on land allotted by State Industrial Development Authorities or other State Government agencies, aimed at reducing the initial land acquisition cost for eligible units establishing operations in the state. Land and Office Space Cost Reimbursement Provides 100% exemption or reimbursement on the purchase of land or office space, either through a bank guarantee mechanism or as reimbursement after the commencement of operations by the eligible unit. Interest Subsidy Provides an interest subsidy of 5% on term loans availed by eligible units, capped at INR 1 crore per year, for a maximum period of five years from the commencement of operations. Operational Subsidy 20% subsidy on operating expenses, including on Lease rentals, Bandwidth expenses, Power Charges & Data Centre/ Cloud Service Costs, up to Rs 40 Cr per annum to Level 1 GCCs and up to a maximum of Rs 80 Cr per annum to Advanced GCCs, for five years. Fresher’s recruitment subsidy Provides a recruitment subsidy of INR 20,000 per fresher with UP domicile graduating from UP-based institutions, for companies hiring at least 30 such employees annually, available for five years. EPF Reimbursement 100% reimbursement for EPF contributions for women, SC/ST, transgender, and Divyangjan employees, up to Rs 1 Cr annually for three years. Talent Development & Skilling: Subsidies for internships of at least 2-months @50% subject to a maximum Rs 5000 per student per month, capped to a maximum 50 interns in a year, for a period of three years. Skill Development Subsidy Rs50,000 per employee for course fee or 50% of the cost of conducting training programs, for a maximum of 500 employees with a cap of Rs 50 lakh per annum for a period of three years. R&D and Innovation Incentives Grants of maximum Rs 10 Cr. for setting up Centres of Excellence, support for startup ideation, and academic partnerships, as per IIEPP-2022. Startup Ideation … Read more