An Indian company or founder entering Australia usually forms an Australian proprietary company, which must have at least one director who ordinarily lives in Australia. The Australian side is straightforward. The part Indian groups underestimate is the Indian side: overseas investment filings through the parent's bank have their own sequence and deadlines, and they need documents from the new Australian company that it can only produce after incorporation.
This page covers what is specific to Indian owners. For the general mechanics, see our guides to setting up a subsidiary and registering a company as a foreign individual.
Order of operations: India first, Australia second
Under the Reserve Bank of India's Overseas Investment Directions, 2022, an Indian investor routes all transactions for an overseas investment through one designated authorised dealer (AD) bank. Before the first investment, Form FC goes to that bank to obtain a unique identification number (UIN). After acquiring equity, the investor must give the AD bank evidence of the investment within six months.
What that means for the Australian company:
- Pick the AD bank early. The parent's finance team should open the conversation before the Australian company is registered.
- Incorporate, then issue shares properly. The Australian company's share certificate and members register are the parent's evidence of investment. Keep them accurate from day one.
- Time the capital remittance. The Australian subsidiary needs a bank account to receive funds, and some Australian banks ask to identify its directors, including the resident director. Plan for this before you set salary or lease dates.
- Diarise the annual reporting. Indian rules require ongoing reporting on the overseas entity. The Directions say an Annual Performance Report must be certified by a chartered accountant where no statutory audit applies.
Indian overseas investment rules are outside our scope. Your Indian CA or the AD bank should confirm what applies, but we can produce the Australian company records they will ask for.
The tax treaty
According to Treasury's income tax treaties list, Australia and India have a comprehensive tax treaty in force. The agreement was signed on 25 July 1991 and entered into force on 30 December 1991. An amending protocol signed on 16 December 2011 entered into force on 2 April 2013, and the treaty is modified by the OECD Multilateral Instrument from 1 October 2019.
One recent change matters to many Indian technology groups. The ATO's page on payments to Indian residents for technical services explains that, for income years starting on or after 29 December 2022, certain payments by Australian customers to Indian residents for technical services provided remotely (not through an Australian permanent establishment) are no longer taxed in Australia. Services delivered onshore through an Australian permanent establishment are still taxed here.
If your Indian company will keep delivering offshore services while the Australian subsidiary contracts locally, the split between onshore and offshore work affects tax on both sides. Your tax adviser and transfer pricing adviser need to set it up deliberately. We don't give tax advice.
FIRB: India has its own thresholds
India is not on the "certain FTA partners" list in the 2026 monetary thresholds table, but it has two India-specific thresholds for service businesses. For private Indian investors from 1 January 2026:
| Acquisition | Threshold |
|---|---|
| Substantial interest (20%+) in an entity, sensitive or not | More than $347 million |
| Entity carrying on a non-sensitive service business | More than $560 million (India only) |
| Developed commercial land (non-sensitive) | More than $347 million |
| Non-sensitive developed commercial land for supplying services | More than $560 million (India only) |
| Sensitive developed commercial land | More than $75 million |
| Agribusiness (direct interest, generally 10%+) | More than $75 million (cumulative) |
| Agricultural land | More than $15 million (cumulative) |
| Mining or production tenements | $0 or more |
Foreign government investors face a $0 threshold for most acquisitions. If the parent is a government-owned enterprise or has state shareholders, speak to a FIRB adviser before signing anything. Our FIRB basics guide explains when approval applies. We don't prepare FIRB applications.
Documents, apostilles and certification
India's accession to the Apostille Convention took effect on 14 July 2005, according to the HCCH status table. Australia has been a party since 1995 and is not among the states that objected to India's accession, so apostilles from India are recognised in Australia.
For our identity checks, a notary or other authorised person in India can certify copies, and documents in languages other than English need a certified translation. Ask before paying for certification if you're unsure whether a certifier is acceptable.
Each director also needs an Australian Director ID before appointment. Indian directors without Australian identity documents usually apply on a paper form with certified documents, which is slower. Start that step in parallel with the AD bank conversation, not after it. The steps are in our Director ID guide.
Working across IST and Australian time
India Standard Time is UTC+5:30 with no daylight saving. Sydney is UTC+10 from early April to early October and UTC+11 for the rest of the year, so Sydney runs 4.5 or 5.5 hours ahead of India. Perth (UTC+8, no daylight saving) is 2.5 hours ahead all year.
The workable window is a Sydney afternoon. A 2:30pm call in Sydney during daylight saving is 9am in Mumbai or Bengaluru. Circulate board papers in the Sydney morning and you can usually collect Indian signatures before Sydney closes the next day. Allow for Indian and Australian public holidays falling on different dates when you set deadlines.
Year ends that don't match
Indian companies generally use a financial year ending 31 March under section 2(41) of India's Companies Act 2013. Australia's tax year ends 30 June. A subsidiary that wants to report on its parent's cycle can apply to the ATO for a substituted accounting period. Synchronising with the controlling entity of the group is one of the reasons the ATO lists, and it says it aims to decide within 28 days. Your Australian tax agent makes the application.
Our company tax guide for foreign-owned companies covers the rest of the Australian lodgement map.
How we fit in
We provide the Australia-resident director, the registered office and the ASIC compliance calendar. Your Indian CA, AD bank and Australian tax agent keep their roles. Once identity checks are complete, appointment takes up to 5 business days. To get a fixed quote, start here.
General information only, current at 27 October 2026. Not legal, tax, foreign exchange or financial advice.
Frequently asked questions
Does Australia have a tax treaty with India?
Yes, a comprehensive tax treaty in force. The agreement dates from 1991, was amended by a protocol that took effect in 2013, and is modified by the OECD Multilateral Instrument. Your tax adviser should confirm the withholding rates for your payments.
Does our Indian parent need RBI approval to invest in Australia?
Indian rules on overseas direct investment apply on the Indian side, and the filings run through the parent's designated AD bank. Whether any approval is needed depends on the investment, so ask your Indian chartered accountant or AD bank before money is sent.
Does FIRB approval apply to an Indian company starting a subsidiary?
FIRB is about acquisitions of interests in Australian entities, businesses and land, and the monetary thresholds for Indian investors are set out in Treasury's 2026 table. Ask a FIRB adviser if your plans include buying an existing business or property.
What is the time difference between India and Sydney?
Sydney is 4.5 hours ahead of India from April to early October and 5.5 hours ahead during Australian daylight saving. Perth is 2.5 hours ahead all year.
Official sources
- Treasury: Income tax treaties (India DTA and 2011 protocol) treasury.gov.au
- ATO: Payments to Indian residents for technical services ato.gov.au
- Foreign Investment Australia: Monetary thresholds from 1 January 2026 (PDF) foreigninvestment.gov.au
- RBI: Foreign Exchange Management (Overseas Investment) Directions, 2022 rbi.org.in
- HCCH: Apostille Convention status table hcch.net
- ATO: Applying for a substituted accounting period ato.gov.au
General information about Australian law and practice, not legal or tax advice for your circumstances. Check the official sources, or ask your adviser, before you act.