Indian legal counsel for Australian corporations investing and operating in India.
Australian companies enter India through one of a small number of legal vehicles — a wholly owned subsidiary or joint-venture company under the Companies Act 2013, a limited liability partnership, or a branch, project or liaison office under the Foreign Exchange Management Act 1999 (FEMA). The right vehicle depends on the activity, the sectoral FDI position, repatriation needs and the India–Australia DTAA. AMLEGALS advises Australian groups on the entry structure before incorporation, so that the capital, control and exit are correct from the first filing. Market access is further shaped by the India–Australia Economic Cooperation and Trade Agreement (ECTA, in force 29 December 2022), which AMLEGALS factors into entry and tariff planning.
Foreign direct investment into India is either on the automatic route or requires government approval, and each sector carries its own cap and conditions under the consolidated FDI policy and FEMA (Non-Debt Instruments) Rules 2019. Beyond entry, an operating company must maintain Companies Act, FEMA reporting (FC-GPR, FC-TRS), tax, labour-code and data-protection compliance on a continuing basis. AMLEGALS acts as single Indian counsel across the life cycle — entry, operations, disputes and exit — for Australian enterprises.
Choosing between a wholly owned subsidiary, joint venture, LLP and branch, project or liaison office against the activity, the sectoral FDI cap and repatriation and exit objectives.
Determining whether the investment is on the automatic or government route and identifying the sector-specific cap and conditions under the consolidated FDI policy and FEMA.
Incorporating the Indian entity under the Companies Act 2013 and structuring equity, instruments and pricing in line with the FEMA (Non-Debt Instruments) Rules 2019.
Managing FC-GPR on share allotment, FC-TRS on transfers and the continuing FEMA and RBI reporting obligations of a foreign-owned company.
Positioning the structure under the India–Australia DTAA for withholding, permanent-establishment and repatriation efficiency.
Maintaining Companies Act governance, contracts and regulatory compliance, and planning a clean, tax-efficient exit or repatriation when required.
For most operating businesses a wholly owned subsidiary (a private limited company) under the Companies Act 2013 is preferred because it gives limited liability, full control and a clean path for FDI, repatriation and exit. A joint venture is used where an Indian partner is commercially or regulatorily required; an LLP suits certain services; and branch, project or liaison offices suit specific, limited mandates. The choice is driven by the activity, the sectoral FDI position and the India–Australia DTAA.
It depends on the sector. Most sectors are on the automatic route, where no prior government approval is required and only post-investment FEMA reporting applies. Certain sectors — such as defence above the automatic cap, broadcasting, print media and multi-brand retail — require prior government approval, and investments from entities of countries sharing a land border with India require approval under Press Note 3 regardless of sector.
Dividends, interest, royalties, fees for technical services and sale proceeds can be repatriated through authorised-dealer banks subject to applicable withholding tax and FEMA documentation. The rate of withholding is reduced where the India–Australia DTAA applies and the recipient holds a valid tax residency certificate and files Form 10F. AMLEGALS structures the capital and agreements so that repatriation is efficient and documented.
A foreign-owned company must comply with the Companies Act 2013 (board, audit, filings), FEMA reporting, income-tax and GST, the four labour codes as notified, and, where it handles personal data, the Digital Personal Data Protection Act 2023. AMLEGALS maintains a compliance calendar so that nothing is missed across these regimes.
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