Europe to India Company Setup

A complete, EU-founder–friendly guide to incorporating, hiring, and staying compliant in India.
Simple explanations. EU-equivalent terms. Trusted by 200+ foreign companies.

Book a Consultation →
Download: India Entry Guide for European Companies →

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⭐ 1. Why European Engineering & Tech Companies Choose India

European founders choose India to:

• Build software engineering teams

• Set up product development units

• Expand consulting & delivery capability

• Hire senior engineering talent cost-effectively

• Reduce project timelines

• Build hybrid global-offshore delivery models

India is the world’s largest pool of skilled engineers — fluent in English and aligned with European work culture.

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⭐ 2. Europe vs India — Key Terms (Clear & Simple)

⭐ 3. The Correct India Structure for European Companies

✔ 100% Foreign-Owned Private Limited Company

Preferred by product engineering, software, tech, and consulting firms.

Why this works best:

• Parent company in Europe can own 100% of the Indian subsidiary

• No minimum capital requirement

• Entire process is remote

• Strong regulatory clarity

• Suitable for hiring employees

• Supports engineering + product development teams

• Clear intercompany billing and cost-sharing structures

(External link → MCA Portal)
https://www.mca.gov.in/

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⭐ 4. Step-by-Step: How European Companies Set Up in India

Step 1 — Pre-Incorporation Planning

We align on:

• Directors (one must be Indian resident)

• Shareholding

• Digital signatures

• Registered office requirements

• Hiring roadmap

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Step 2 — Director KYC + Digital Signature (DSC)

Equivalent to your:

• EU e-signature

• Digital identity verification

Required to sign incorporation documents.

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Step 3 — Filing SPICe+ with MCA (India’s Companies House Equivalent)

We handle:

• SPICe+ Part A (name reservation)

• SPICe+ Part B (incorporation filing)

• MOA & AOA

• PAN & TAN

• DIN for directors

The Indian version of:

• Filing formation documents

• Registering with Companies House-like system

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Step 4 — Opening the Bank Account

We coordinate:

• KYC

• Board resolution

• Activation

• Internet banking setup

No physical visit required.

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Step 5 — Capital Remittance (FDI)

When the European parent sends capital to India, Indian law requires:

• Purpose code

• KYC check

• FDI reporting to RBI

(External link → RBI FIRMS Portal)
https://firms.rbi.org.in/

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Step 6 — Mandatory FDI Compliance

We file:

• FC-GPR after capital is received

• FLA return annually

• Any clarifications required by the bank/RBI

This is essential for all foreign-owned subsidiaries.

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Step 7 — Post-Incorporation Setup

We complete:

• GST registration (like EU VAT but monthly filing)

• Payroll setup (PF, ESIC, PT, TDS)

• Zoho Books / Tally / QuickBooks setup

• Accounting system

• India employment contracts

• Intercompany agreements

• Compliance calendar

• Onboarding process for engineers & consultants

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⭐ 5. Common European Mistakes (And How We Prevent Them)

❌ Using EU-style employment letters in India

✔ We draft India-specific contracts.

❌ Hiring long-term freelancers instead of employees

✔ We set up compliant payroll with PF/ESIC/TDS.

❌ Treating India like an EU branch

✔ India requires separate books, audit, tax filings, and MCA annual returns.

❌ Assuming VAT works like GST

✔ GST has monthly filing obligations.

❌ Mixing shareholder vs director roles

✔ Indian Companies Act defines them distinctly.

❌ Not filing FC-GPR after capital receipt

✔ We handle all FDI compliance to avoid penalties.

European founders avoid costly mistakes by following India-specific rules.

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⭐ 6. Your India Payroll Setup (EU-Friendly View)

European payroll ≠ Indian payroll.

In Europe:

• Income tax withholding

• Social security

• Pension payments

• Health insurance

In India:

• TDS (withholding tax)

• PF (retirement fund)

• ESIC (health insurance for eligible employees)

• Professional Tax

• Gratuity

• Leave rules

• Local labor compliance

We set up and manage end-to-end payroll using:

• Zoho

• Keka

• Razorpay Payroll

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⭐ 7. Monthly Accounting & Compliance for EU Companies

✔ GST (Indian VAT)

Filed monthly/quarterly.
Portal: https://www.gst.gov.in/

✔ TDS (Withholding tax)

Monthly payments + quarterly filings.

✔ Statutory Audit

Mandatory for every private limited company.

✔ MCA Filings

Equivalent to annual returns under EU corporate law.

✔ Income Tax Return

Corporate tax filings similar to EU corporate tax declarations.

We manage the entire monthly + annual compliance cycle.

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⭐ 8. Transfer Pricing for EU Parent – India Subsidiary

We provide:

• Intercompany agreement drafting

• Benchmarking study (local comparables)

• 3CEB filing

• Master File & CbCR guidance

EU groups must maintain arm’s-length pricing for cross-border transactions.