UK · India Entry · Ex-Big 4

🇬🇧 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 — UK-India DTAA, FCA-regulated entities, and post-Brexit structuring.

India entry snapshot for UK Companies

20+
UK companies advised
24 days
Avg. incorporation
£0
FEMA penalties
Strong
UK-India DTAA

Why UK Companies choose India

⚖️
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 — lower adaptation curve than other jurisdictions.

🗣️
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.

🏦
Strong UK-India DTAA

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

📊
UK GAAP/IFRS alignment

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

How UK Companies incorporate in India

01
Structure decision & DTAA analysisDay 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.

02
Document preparationDays 2–5

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

03
MCA incorporationDays 6–19

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

04
RBI FCGPR filingWithin 30 days

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

05
Post-incorporation setupWeeks 4–6

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

Key tax points for UK Companies in India

✓

India-UK DTAA: dividends at 10–15%, interest at 10–15%, royalties at 10–15%

✓

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

✓

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

✓

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

✓

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

How it works in practice

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 — 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.

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

Common questions from UK Companies

Yes. 100% FDI under the Automatic Route is permitted for most sectors. A UK company (private limited or plc) can hold 100% of an Indian Private Limited Company. FCGPR filing with RBI is required within 30 days of share allotment.

Yes. The India-UK DTAA is a bilateral treaty between India and the UK — it is completely unaffected by Brexit. It provides reduced withholding tax rates on dividends, interest, royalties, and fees from India to the UK.

If the Indian entity performs activities that constitute a permanent establishment under the India-UK DTAA, the profits attributable to those activities become taxable in India. FCA-regulated firms face particular scrutiny — advisory activities, client-facing staff, and contract signing authority in India can all trigger PE.

Indian subsidiaries prepare accounts under Ind AS (IFRS-converged). For UK group consolidation, minor reconciliation to IFRS is typically required. We prepare Ind AS accounts with IFRS bridge notes where needed.

The principles are the same — OECD arm's length standard. In India, Form 3CEB (certified by a Chartered Accountant) must be filed by 31 October each year. The Indian TP study is a separate document from HMRC's UK TP documentation requirements — both are needed.

Ready to set up your UK company in India?

FCDO apostille guidance to Certificate of Incorporation — we handle everything.

Book a Free Consultation →
Arya — India Entry Advisor
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