Opening a Bank Account for Your Indian Subsidiary — Requirements, Process, and Common Delays

Why the bank account matters more than most companies realise

The Indian subsidiary's bank account is the operational foundation for all compliance. FDI funds must be received in this account before FC-GPR can be filed. GST payments, TDS deposits, and payroll must flow through this account. All RBI reporting references this account's bank.

Choosing the right bank matters. The bank's compliance team will become your interface with the RBI for all FDI-related approvals and filings.

Which bank should a foreign-owned Indian company choose?

For foreign-owned Indian subsidiaries, we recommend private sector banks with dedicated international business desks — specifically HDFC Bank, ICICI Bank, or Axis Bank.

Avoid opening the primary FEMA account with a co-operative bank or regional rural bank. The compliance infrastructure is not in place for FDI reporting. Key criteria: Does the branch have an Authorised Dealer Category I licence and can they issue FIRCs efficiently?

Documents required to open a current account for an Indian subsidiary

Company documents required: Certificate of Incorporation, MOA and AOA, Board resolution authorising account opening and naming authorised signatories, PAN of the company, GST registration certificate if obtained, and Registered office proof.

For each director and authorised signatory: PAN card, Aadhaar card for Indian residents or valid passport for foreign nationals, photograph, and address proof.

How long does it take?

With complete documents and a local authorised signatory, most private sector banks can open the account within 5-7 working days. With foreign directors requiring video KYC, allow 10-15 working days.

Common delays include KYC for foreign directors which requires video call verification in India business hours, board resolution wording that differs from standard legal templates, and address proof issues for entities with virtual registered offices.

The FIRC — your most important banking document

Every time your foreign parent remits money to the Indian subsidiary, the bank issues a Foreign Inward Remittance Certificate. This is the primary evidence of FDI receipt required for FC-GPR filing with the RBI.

Keep every FIRC permanently on file. Make it a policy to request the FIRC within 24 hours of every inward remittance rather than chasing the bank weeks later.

We coordinate bank account opening as part of our incorporation service — including board resolution drafting to the bank's specific wording requirements and coordination of KYC for foreign directors. Book a free consultation to understand the process for your situation.