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Indian Subsidiary Setup for clients in Israel

Israeli companies use Indian subsidiaries to house development centres, sales teams and customer support. A private limited company owned by the Israeli parent is the usual structure.

Updated Reviewed by our legal team

Indian Subsidiary Setup for clients in Israel
In short

An Israeli company sets up an Indian wholly owned subsidiary as a private limited company with at least two shareholders (the parent and a nominee) and two directors, one meeting the Indian residency requirement. Board resolutions and the Israeli Registrar of Companies extract are notarised, apostilled and sent to India. Incorporation is online through SPICe+, typically two to four weeks after documents are ready. Shares must be issued within 60 days of the investment and reported on FIRMS.

Document route
Israeli notary, then apostille
Time difference
IST is 2.5 to 3.5 hours ahead
Vehicle
Private limited company
Approval
Automatic route in most sectors

Indian Subsidiary Setup from Israel: how it works

We start with structure: the Indian company's activities, the sector's FDI route, capital and the intercompany model. A cost-plus development centre, a sales subsidiary and a manufacturing unit each have different tax and transfer pricing consequences. The Israeli parent's board passes resolutions approving the investment and appointing nominees; an Israeli notary certifies them and the Registrar of Companies extract, which are then apostilled. Foreign directors obtain digital signatures remotely.

In India we incorporate the company, obtain PAN, TAN and GST registration as needed, and open the bank account. The parent remits capital, we allot shares and file Form FC-GPR within 30 days. Ongoing compliance includes board meetings, statutory audit, annual returns, the FLA return by 15 July and transfer pricing documentation. Watch for sectoral restrictions and for Israeli employees seconded to India, who create tax and permanent establishment risks.

What clients in Israel should know

  • Defence, telecom and some security-related activities may need government approval or security clearance even where FDI is permitted.
  • Service fees and royalties from the Indian subsidiary to the Israeli parent fall under the India-Israel treaty and Indian transfer pricing rules.
  • Israeli parents should align the Indian subsidiary's articles with their own approval matrix, so Indian directors cannot commit the group unilaterally.

Step by step from Israel

  1. Video consultation

    A call at a time that suits Israel, after we have read your documents.

  2. Documents signed in Israel

    Israeli notary, then apostille

  3. Work in India

    Our team files, appears and follows up in India, and shares scans of everything filed.

  4. Result and handover

    Certified copies and originals are couriered to you in Israel where needed.

The full guide

This page covers what changes when you are in Israel. For the law, the documents and the step-by-step procedure, read our main page on Indian Subsidiary Setup, or see all services for clients in Israel and the Doing Business in India practice area.

Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.

Questions from clients in Israel

Do Israeli directors need to visit India?

No. Digital signatures and incorporation can be completed from Israel; banks may ask for a video verification.

Can the subsidiary employ Israeli staff in India?

Yes, with Indian employment visas and payroll compliance. Short visits for business are on business visas.

How long before the subsidiary can operate?

Usually within a month of incorporation, once the bank account, tax registrations and any licences are in place.

Tell us about your matter

Send the papers you have. We reply to clients in Israel within one working day.

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