UK ยท India Entry ยท Ex-KPMG Advisory

๐Ÿ‡ฌ๐Ÿ‡ง UK Company
Setting Up in India

India and the UK share a common legal heritage and deep business ties. Over 20 UK companies use our platform. Here is what UK companies face โ€” UK-India DTAA, FCA-regulated entities, and post-Brexit structuring.

Quick Facts

India entry snapshot for UK Companys

20+
UK companies advised
24 days
Avg. incorporation
ยฃ0
FEMA penalties
Strong
UK-India DTAA
Why UK companies choose India

Why UK companies choose India

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Common law legal system

India and the UK share a common law heritage. Indian corporate law, contract law, and courts are broadly familiar to UK-trained legal teams โ€” lower adaptation curve than other jurisdictions.

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English as the business language

India's professional class operates entirely in English. UK companies face no language barrier in legal, financial, or technical communication.

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Strong UK-India DTAA

The India-UK DTAA provides favourable withholding tax rates on dividends (10โ€“15%), interest (10โ€“15%), and royalties (10โ€“15%). Well-structured, UK companies pay significantly less than the 20% domestic WHT rate.

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UK GAAP/IFRS alignment

Indian accounting standards (Ind AS) are substantially converged with IFRS. UK group reporting is straightforward โ€” minimal reconciliation required.

The Process

How UK Companys incorporate in India

1
Structure decision & DTAA analysis Day 1

We assess your sector, FDI route, and applicable DTAA to recommend the right entity type. For UK & Europe companies, this includes reviewing intercompany pricing implications from day one.

2
Document preparation Days 2โ€“5

Parent company documents need apostilling or equivalent authentication in UK & Europe. For foreign director KYC, this adds 3โ€“5 days. We advise on exactly which documents are needed.

3
MCA incorporation Days 6โ€“19

SPICe+ filing โ€” company name, directors, registered office, PAN, TAN, GSTIN. Certificate of Incorporation typically in 7โ€“12 working days after document submission.

4
RBI FCGPR filing Within 30 days

Foreign Currency Gross Provisional Return โ€” mandatory FEMA filing after share allotment. For UK & Europe companies, the valuation methodology and exchange rate documentation must align with your home jurisdiction requirements.

5
Post-incorporation setup Weeks 4โ€“6

Bank account, GST registration, TDS, payroll, transfer pricing policy, and compliance calendar. Full operational readiness.

Tax Considerations

Key tax points for UK Companys in India

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India-UK DTAA: dividends at 10โ€“15%, interest at 10โ€“15%, royalties at 10โ€“15%

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UK CFC rules apply โ€” India subsidiary income may be attributable to UK parent if structure is passive

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Transfer pricing: UK HMRC's arm's length standard is equivalent to India's Section 92 โ€” same documentation principles apply

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FCA-regulated entities require additional care โ€” PE risk must be assessed before any advisory activities in India

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Post-Brexit: UK companies no longer benefit from EU parent-subsidiary directive โ€” direct UK-India DTAA planning is essential

Real Client Example

How it works in practice

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UK & Europe

London fintech set up a regulated India entity in 24 days

The challenge

FCA-regulated company needed an India presence for their engineering and operations team. Zero tolerance for RBI or FEMA non-compliance โ€” any notice would trigger FCA reporting obligations.

What we delivered

WOS incorporated, RBI FCGPR filed within 30 days, GST and TDS registration complete, compliance calendar aligned to UK group reporting cycle.

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Zero RBI or FEMA notices in 2 years of operation. Clean records for the FCA-regulated parent.

FAQ

Common questions from UK Companys

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