Under Press Note 3 of 2020, any investment by an entity of China, or where the beneficial owner is situated in or is a citizen of China, needs prior Government of India approval, whatever the sector or amount. Once approval is granted, the Indian company is incorporated or the shares issued, and the investment is reported to the RBI in Form FC-GPR within 30 days.
- Document route
- Chinese notary office and apostille, or Indian mission attestation
- Time difference
- IST is 2h30 behind China all year
- Law
- Companies Act 2013, FEMA 1999, NDI Rules 2019
- Minimum
- 2 directors, 2 shareholders
Company Setup for Foreigners from China: how it works
We start by mapping the ownership chain to the ultimate beneficial owners, because the approval application must disclose them in detail. We prepare the application on the foreign investment portal with the business plan, the sector and the proposed Indian operations, and respond to ministry queries during the review.
After approval, we handle incorporation, PAN, TAN, bank account, receipt of capital, FC-GPR, GST, and the compliance calendar. We also advise on joint venture structures with Indian partners that may change the approval position, and on later share transfers that need fresh approval.
What clients in China should know
- Approval is needed even for small investments and existing Indian companies taking Chinese money.
- Indirect Chinese ownership through Singapore or Hong Kong entities is also covered.
- Plan for several months for approval.
Step by step from China
Video consultation
A call at a time that suits China, after we have read your documents.
Documents signed in China
Chinese notary office and apostille, or Indian mission attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in China where needed.
The full guide
This page covers what changes when you are in China. For the law, the documents and the step-by-step procedure, read our main page on Company Setup for Foreigners, or see all services for clients in China and the Doing Business in India practice area.
Questions from clients in China
Is approval needed if we invest through our Singapore company?
Yes, if the beneficial owner is Chinese.
Can a Chinese company set up a liaison office instead?
Liaison and branch offices also need specific approvals for applicants from China.
Can a Chinese citizen be a director?
Yes, with security clearance where required and alongside a resident director.