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Indian Subsidiary Setup for clients in Mauritius

Mauritius holding companies and Mauritian business groups often own Indian operating companies. Setting up the subsidiary correctly, with real substance and clean FEMA records, matters for both tax and future exits.

Updated Reviewed by our legal team

Indian Subsidiary Setup for clients in Mauritius
In short

A Mauritius company sets up an Indian subsidiary as a private limited company with at least two shareholders and two directors, one of whom meets the Indian residency requirement. The Mauritian certificate of incorporation, constitution and board resolution are certified and apostilled. Incorporation through SPICe+ usually takes two to four weeks. Shares are allotted within 60 days of receiving the investment and reported on FIRMS. Beneficial ownership is checked for Press Note 3.

Document route
Mauritian notary or authority, then apostille
Time difference
IST is 1.5 hours ahead (no daylight saving)
Vehicle
Private limited company
Approval
Automatic route in most sectors

Indian Subsidiary Setup from Mauritius: how it works

We start by confirming the sector's FDI route and caps and the group structure above the Mauritius company. If any beneficial owner is from a country sharing a land border with India, Press Note 3 requires government approval, whatever the Mauritian structure. The Mauritian company's board resolves to invest and appoints nominees; its corporate documents are certified, notarised and apostilled. Directors obtain digital signatures remotely, and we prepare the Indian constitutional documents.

After incorporation we open the bank account, receive the investment, allot shares and file Form FC-GPR. Ongoing compliance includes board meetings, statutory audits, annual filings, the FLA return and, where applicable, transfer pricing documentation. Watch the substance of the Mauritius holding company: Indian tax authorities may question treaty benefits if the Mauritius entity lacks real management and decision-making in Mauritius.

What clients in Mauritius should know

  • Gains on Indian subsidiary shares acquired from 1 April 2017 are taxable in India under the amended treaty; plan exits accordingly.
  • Dividends from the Indian subsidiary to the Mauritius parent are subject to Indian withholding tax, possibly reduced under the treaty with a tax residency certificate.
  • Mauritius management companies often hold resolutions and registers; coordinate with them so documents are certified in the form Indian authorities expect.

Step by step from Mauritius

  1. Video consultation

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

  2. Documents signed in Mauritius

    Mauritian notary or authority, 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 Mauritius where needed.

The full guide

This page covers what changes when you are in Mauritius. 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 Mauritius 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 Mauritius

Can a Mauritius GBC own 100 per cent of an Indian company?

Yes, in sectors under the automatic route without caps, subject to Press Note 3 and sectoral conditions.

Do Mauritian directors need to travel to India?

No. Incorporation and banking can be handled remotely, though banks may ask for video verification.

Is treaty protection still useful for a new subsidiary?

Some treaty benefits remain, such as on dividends and interest, but the capital gains advantage is largely gone for new investments.

Tell us about your matter

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

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