A South African company can own an Indian private limited company under the automatic route in most sectors. The parent's board resolution, CIPC registration certificate and directors' identity documents are notarised and apostilled, and the parent obtains South African exchange control clearance for the investment through its authorised dealer. We then file incorporation with the Ministry of Corporate Affairs, which typically takes two to four weeks after documents arrive.
- Document route
- South African notary, then apostille from a High Court registrar or DIRCO
- Time difference
- IST is 3h30 ahead of South Africa all year (no daylight saving)
- Law
- Companies Act 2013, FEMA 1999, NDI Rules 2019
- Minimum
- 2 directors, 2 shareholders
Company Setup for Foreigners from South Africa: how it works
We check the sector, the FDI cap and whether any approval is needed, then draft the board resolution of the South African parent authorising the investment and the nomination of directors. The resolution, CIPC certificate and memorandum of incorporation are certified, notarised before a South African notary and apostilled by a High Court registrar. In parallel, the parent's authorised dealer bank in South Africa handles the exchange control application for the outward investment.
On incorporation, the Indian company obtains PAN and TAN, opens a bank account and receives the share capital from the South African parent through banking channels. Shares are allotted within sixty days and reported to the RBI on Form FC-GPR. Ongoing compliance includes Indian annual filings, audit, GST registration where needed, transfer pricing documentation and the annual return on foreign liabilities and assets. At least one director must have been resident in India for 182 days in the financial year.
What clients in South Africa should know
- The India and South Africa tax treaty can reduce Indian withholding on dividends and fees, provided the parent has a SARS certificate of residence and genuine substance.
- Black economic empowerment rules in South Africa affect the parent's ownership but not the Indian subsidiary's structure; check that the investment does not dilute the parent's own scorecard.
- A South African group that already holds an Indian company through Mauritius or another hub should review the structure under India's anti-avoidance rules.
Step by step from South Africa
Video consultation
A call at a time that suits South Africa, after we have read your documents.
Documents signed in South Africa
South African notary, then apostille from a High Court registrar or DIRCO
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 South Africa where needed.
The full guide
This page covers what changes when you are in South Africa. 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 South Africa and the Doing Business in India practice area.
Questions from clients in South Africa
Can a South African individual set up an Indian company?
Yes. An individual can be a shareholder and director. The same documents are apostilled, and the individual's South African exchange control allowance or clearance applies.
What South African documents are needed?
The CIPC registration certificate, memorandum of incorporation, board resolution and directors' passports and proof of address, notarised and apostilled.
How long before the Indian company is operational?
Typically four to six weeks from receipt of documents, assuming the South African exchange control approval is in place.