🏦 Opening a Bank Account for Your Foreign Subsidiary in India 🇮🇳

Expanding your business into India by incorporating a foreign subsidiary is a strategic move. One of the key operational steps post-incorporation is opening a local bank account for your subsidiary. This guide explains the process, requirements, and tips to ensure a smooth experience.

🌐 Why Open a Bank Account in India?

Having an Indian bank account for your subsidiary is essential for:

• ✅ Complying with local business regulations
• 💳 Handling local and international transactions
• 📄 Paying taxes and filing returns
• 🤝 Building trust with local clients and vendors
• 💼 Disbursing salaries and managing daily operations

🧾 Pre-requisites for Opening a Bank Account

Before approaching a bank, ensure you have the following in place:

1. 📜 Company Incorporation

• Incorporate the foreign subsidiary with Registrar of Companies (RoC) under the Companies Act, 2013.
• Obtain the Certificate of Incorporation, PAN, and TAN.

2. 🧾 KYC & Statutory Documents

Banks will require:

• Certificate of Incorporation
• PAN of the company
• Memorandum & Articles of Association
• Board Resolution for account opening
• Authorized signatory ID & address proof
• Foreign parent company’s incorporation certificate
• Shareholding structure

🏦 Choosing the Right Bank

Some of the most preferred banks by foreign companies in India include:

Choose a bank that:

• Has experience handling foreign direct investment (FDI) transactions
• Provides dedicated relationship managers
• Offers multi-currency accounts

📝 Step-by-Step Process

Step 1: 📂 Prepare Documents

Make sure all incorporation and KYC documents are notarized and apostilled, especially if issued outside India.

Step 2: 🏦 Select Bank & Schedule Meeting

Initiate contact via your consultant or representative. A board resolution should authorize an Indian-residing director or official to handle the process.

Step 3: 🧑‍💼 KYC Verification & Due Diligence

The bank will conduct due diligence under RBI and FEMA regulations, including:

• Background checks
• Ownership verification
• Director KYC & Aadhaar (if Indian)

Step 4: 💼 Account Setup

Once verified, your current/corporate account is opened. You may opt for:

• Current Account (standard)
• FCNR/NRE Account (for foreign currency handling)
• Escrow Account (for specific project-based needs)

Step 5: 🌐 Internet Banking & Token Access

You will receive:

• Account number & IFSC
• Internet banking login
• Token or security device for authorized users

🔍 Important Regulations to Know

📘 FEMA Guidelines

All bank account activities for foreign subsidiaries fall under Foreign Exchange Management Act (FEMA). Ensure:

• Proper FDI reporting to RBI
• Authorized capital infusion channels

🧾 Tax Reporting

Your Indian bank account must be used for:

• Paying GST, TDS, and Income Tax
• Filing Form 15CA/15CB for repatriations

🛡️ Beneficial Ownership

As per RBI, UBO (Ultimate Beneficial Owner) disclosure is mandatory.

📑 Documents Checklist

Here’s a concise checklist for opening a bank account:

✅ Certificate of Incorporation
✅ PAN & TAN of Indian subsidiary
✅ MOA & AOA
✅ Board resolution
✅ KYC of directors and authorized signatories
✅ Proof of address (business premises)
✅ Lease agreement or utility bill
✅ Parent company’s incorporation certificate & shareholding structure
✅ Declaration for beneficial ownership

💡 Tips for a Smooth Process

🔹 Appoint at least one Indian resident director to simplify KYC
🔹 Use a professional consultant or CA firm to handle compliance
🔹 Open the account immediately after incorporation to avoid delays
🔹 Maintain transparency in FDI reporting to avoid regulatory penalties

⏱️ Timelines

💰 Fees and Charges

Different banks have varied fee structures:

• Account opening fee – Usually NIL
• Minimum balance – ₹10,000 to ₹1,00,000
• Forex conversion fees – As per RBI and bank rates
• Monthly/Annual maintenance – Varies

Confirm charges with your bank relationship manager.

🌍 Foreign Inward Remittance – Key Points

• Use FIRC (Foreign Inward Remittance Certificate) for proof of capital inflow.
• Ensure foreign funds come via approved banking channels.
• File FC-GPR form within 30 days of fund allotment.

🤔 Common FAQs

❓ Can a foreigner open a bank account in India?

A foreign company cannot directly open a bank account. It must incorporate an Indian subsidiary first, and then the authorized signatory (preferably Indian resident) can open the account.

❓ Is physical presence required?

Yes, some banks require the signatory to be physically present for KYC and signing documents. Check with the bank beforehand.

❓ Can I use this account for repatriation?

Yes, but follow FEMA and RBI guidelines. File Form 15CA/CB and ensure all tax dues are cleared before repatriation.

📌 Conclusion

Opening a bank account for your foreign subsidiary in India is a vital step toward starting local operations. While the process is structured, involving multiple documents and compliance steps, it is quite manageable with the right support.

With proper planning and a reliable local advisor, you can open the account smoothly and start your Indian operations with confidence. 🇮🇳✅

🔍 Meta Description:

Learn how to open a bank account for your foreign subsidiary in India. Step-by-step guide including documents required, regulatory tips, and FAQs.

🗝️ Meta Keywords:

foreign subsidiary bank account India, open company bank account India, RBI compliance, FDI reporting, FEMA India, capital remittance India