Register a Company in India from France

Author: Manu Rao | Updated: March 2026

At a Glance

Why French Businesses Are Moving into India

In February 2026 President Macron visited Mumbai for the AI Impact Summit and upgraded India-France relations to a Special Global Strategic Partnership. Twenty-three French companies joined the official business delegation. The same month India and France signed an Amending Protocol to their 1992 DTAA, rewriting dividend tax rates and removing the controversial most-favoured-nation clause. Days earlier the India-EU Free Trade Agreement was concluded, removing tariffs on over 90% of goods.

These are not symbolic gestures. They reflect actual commercial activity. Bilateral trade reached $15.21 billion in FY 2024-25. In euro terms it more than doubled to EUR 12.67 billion. France is India's 3rd largest EU trading partner.

Over 1,100 French companies operate in India, employing more than 350,000 people. Capgemini alone has 175,000+ employees in India, making it the largest private French employer in the country. Airbus maintains 3,600+ employees and sources over $1 billion annually from Indian suppliers. Safran has 2,600+ employees across 18 sites and recently invested EUR 150 million in a maintenance, repair, and overhaul (MRO) facility in Hyderabad. Schneider Electric operates 31 factories in India and plans to expand production 2.5 to 3 times.

Cumulative French FDI in India stands at approximately EUR 9.79 billion (about $11.75 billion) from April 2000 to March 2025. France is the 11th largest foreign investor, contributing 1.61% of total FDI inflows.

The aerospace and defence sector dominates French exports to India, accounting for more than 50% of the total. India operates 36 Rafale jets delivered by Dassault, with a contract for 26 Rafale-Marine jets finalised in February 2026. BEL and Safran signed a joint venture for HAMMER missile production in India.

Around 119,000 Indians live in metropolitan France, concentrated in the Ile-de-France region around Paris. French overseas departments like Reunion, Guadeloupe, and Martinique are home to roughly 367,000 more, bringing the total to nearly 486,000 people of Indian origin in French territory. France is targeting 30,000 Indian students by 2030, up from around 20,000 in recent years.

Choose Your Entity Type

French investors pick from four main structures. Each suits a different business model and risk appetite.

The pattern among French companies is telling. Large groups like Capgemini, Schneider Electric, and Saint-Gobain run their Indian operations through Private Limited Company subsidiaries. IT and consulting firms often start with a small Pvt Ltd to build their delivery team. Luxury brands and retail companies use Branch Offices when they need an Indian presence tied to the French parent.

French professional services firms and architecture practices sometimes consider LLPs. The LLP resident partner must have stayed in India for 120 days in the preceding financial year. This is not the same as the 182-day rule for tax residency. Competitors frequently confuse these two thresholds.

2026 brings an added reason to think carefully about entity structure: the India-France DTAA Amending Protocol introduces a split dividend rate (5% for holders of 10%+ capital, 15% for others) once ratified. If your French parent company holds a majority stake, the lower 5% rate on dividends makes a Pvt Ltd subsidiary particularly tax-efficient.

FDI Route and Sector Rules

France does not share a land border with India. Press Note 3 does not apply. French investors use the automatic route for eligible sectors.

100% FDI under automatic route: IT services, aerospace components, automobile manufacturing, food processing, healthcare, pharmaceuticals, renewable energy, single-brand retail (with conditions), and construction development.

Government approval required: Defence above 74%, print media above 26%, multi-brand retail above 51%, broadcasting (certain categories), and mining (certain minerals).

Prohibited: Atomic energy, lottery and gambling, chit funds, tobacco manufacturing, and real estate business (not construction).

French FDI gravitates toward aerospace and defence (Dassault, Safran, Airbus, Thales, MBDA, Naval Group), IT services (Capgemini, Atos, Sopra Steria), energy (TotalEnergies, EDF, Engie), automotive and industrial (Renault, Michelin, Schneider Electric, Saint-Gobain), and financial services (BNP Paribas, Societe Generale, AXA).

The India-EU FTA concluded in January 2026, which covers France as an EU member state, will reduce tariffs on 90%+ of goods in both directions. For French companies, this opens lower-duty access for automobiles, wines, dairy, and agricultural equipment exported to India. Indian textiles, leather goods, marine products, and gems will face reduced tariffs entering France.

Nuclear energy cooperation is a distinctive feature of the India-France relationship. The Jaitapur Nuclear Power Plant project, involving six EPR reactors by EDF, has been under discussion for years. A 2025 Declaration of Intent expanded cooperation to Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs). Nuclear energy investments require government approval but represent a sector where French expertise has few global competitors.

Step-by-Step Registration Process

Eight steps from start to finish. Realistic total timeline: six to eight weeks.

Other websites quote "7 to 15 days." That number excludes document notarisation by a Notaire in France, apostille through the Cours d'appel system, international courier times, and bank account opening. Budget six to eight weeks from the day you start gathering documents to the day your bank account is operational.

Document Checklist and Authentication

French investors need:

• Passport copy of each proposed director and shareholder (notarised by a Notaire)
• Address proof not older than two months (facture de services, releve bancaire, or attestation de domicile)
• Passport-size photographs
• Board resolution (proces-verbal) of the French parent company (SAS, SARL, or SA) authorising the Indian investment, notarised and apostilled
• Proof of Indian registered office (rental agreement with landlord NOC)
• Digital Signature Certificates for all proposed directors

France's apostille system uses a centralised online portal. You initiate the application online, select a regional processing centre (there are 15), and post the original document to that centre. The authority checks the document signature against the national database of public signatures. If verified, the apostille is affixed. Standard processing is 3 working days. Fees apply and vary based on the timeline you choose. If the apostille cannot be issued, the fee is refunded.

Common mistakes: submitting documents with accented characters that MCA cannot process, using an old attestation de domicile (must be under two months old), and not getting the board resolution apostilled separately when the investor is a corporate entity.

DTAA Tax Table: India-France

The India-France DTAA was signed on September 29, 1992, and entered into force on August 1, 1994. A significant Amending Protocol was signed on February 23, 2026, pending ratification.

The February 2026 Amending Protocol is a significant development. It deletes the MFN clause that had caused years of disputes about whether India-France DTAA rates should automatically match lower rates India granted to other OECD members. It also introduces a split dividend rate: 5% for shareholders holding 10% or more of the capital, and 15% for portfolio investors. This means a French parent company with a majority-owned Indian subsidiary will pay only 5% on dividends once the protocol is ratified.

The amendment also grants India expanded authority to tax capital gains from share disposals by French investors. This is a shift from the current treaty.

Surcharge and cess are not levied over treaty rates. To claim DTAA benefits, French investors need a Tax Residency Certificate from the Direction Generale des Finances Publiques.

Realistic Timeline

Total: six to eight weeks. The timezone difference (France is 3.5 to 4.5 hours behind India depending on summer time) can slow back-and-forth communications. The apostille process in France is relatively fast at 3 working days, but courier time to and from the regional centre adds a few more days. Expedited apostille is available for a fee.

Post-Registration Compliance Calendar

Compliance obligations start on the day of incorporation.

• FC-GPR with RBI: Within 30 days of issuing shares to the French parent. Required under FEMA. Non-negotiable deadline.
• Board meetings: At least 4 per year for Pvt Ltd. No gap exceeding 120 days.
• AGM: By September 30 annually.
• AOC-4: Within 30 days of AGM.
• MGT-7: Within 60 days of AGM.
• Statutory audit: Mandatory every year. An Indian CA must be appointed as auditor.
• Income tax return: By October 31 for companies needing tax audit.
• GST returns: Monthly or quarterly depending on turnover and elected scheme.
• Transfer pricing documentation: Mandatory under Sections 92A-92F of the Income Tax Act, 1961 if the Indian subsidiary transacts with its French parent or related entities.

Bank Account Opening

Expect 2 to 4 weeks. Enhanced KYC applies to companies with foreign beneficial owners.

You will need the Certificate of Incorporation, PAN card, FATCA and CRS self-certification, and AD Category-I bank verification. BNP Paribas and Societe Generale both operate in India, so if your French company already banks with them, using their Indian arm can speed up the process. HDFC, ICICI, and SBI also handle foreign-owned company accounts.

Start the bank account process on the day you receive the Certificate of Incorporation. Do not wait for GST registration. The bank account is needed before you can receive FDI funds and file FC-GPR.

Profit Repatriation to France

French investors repatriate profits through dividends, royalties, management fees, or share buyback. DDT was abolished in April 2020. Shareholders now pay tax directly.

The process: Indian subsidiary deducts TDS at the DTAA rate (currently 10% for dividends, dropping to 5% for 10%+ capital holders once the 2026 amendment is ratified), issues Form 16A, obtains CA certificate in Form 15CB, files Form 15CA online, and the AD bank processes the remittance in EUR.

The 2026 DTAA amendment is particularly relevant for repatriation planning. If your French parent holds more than 10% of the Indian subsidiary's capital, the dividend withholding drops from 10% to 5%. This is a tangible tax saving that should factor into your structuring decisions now, even though ratification is pending.

Exit Strategy

Two main paths if the Indian operation needs to wind down.

Strike-off under Section 248, Companies Act, 2013: For dormant companies with no operations, no liabilities, and no remaining assets. Apply to the Registrar of Companies. Faster and simpler.

Voluntary liquidation under the Insolvency and Bankruptcy Code, 2016: For active companies with assets to liquidate and liabilities to settle. Special resolution, liquidator appointment, creditor clearance required. Timeline: 6 to 12 months.

Map out the exit scenario at the time of incorporation. It is not pessimism; it is good governance. French companies, accustomed to detailed corporate planning, will find India's exit procedures straightforward if documented in advance.

How Beacon Filing Helps

We handle the complete India entry process for investors based in France. From initial structuring through post-incorporation compliance, here is what we cover:

• Foreign Direct Investment advisory — route selection, sector analysis, RBI compliance, and FC-GPR filing
• Resident Director services — appointment of a qualified Indian resident director who meets the 120-day requirement
• Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
• Tax and DTAA advisory — treaty benefit structuring, transfer pricing documentation, and annual compliance
• Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns

For a detailed walkthrough, see our case study: French Company Entering the Indian Market.

Related Country Guides

Setting up from a different country? These guides cover similar territory:

• Register a Company in India from United Kingdom
• Register a Company in India from Germany
• Register a Company in India from Belgium
• Register a Company in India from Italy

Get in Touch

Setting up an Indian company from France? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.

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