Register a Company in India from Spain

By Manu Rao | Updated March 2026

At a Glance

Why Spanish Investors Are Setting Up in India

Spain and India are building something real. Bilateral trade in goods reached $9.32 billion in 2024, up 12% from the year before, per data from the Embassy of India in Madrid. India exported $6.93 billion to Spain that year. Spain sent back $2.39 billion. The trade balance favors India heavily, but the two-way flow keeps growing.

Nearly 240 Spanish companies now operate in India. They span renewable energy, infrastructure, aerospace, ceramics, and fashion. Acciona builds highways and metro stations. Siemens Gamesa installs wind turbines. And in October 2024, Spanish PM Pedro Sanchez and PM Modi jointly inaugurated the Airbus-Tata C295 aircraft assembly plant in Vadodara, Gujarat. That plant alone signals where this relationship is headed.

Then there is the India-EU Free Trade Agreement, concluded on January 27, 2026. After nearly two decades of stop-and-start negotiations, the deal is done. It cuts or removes tariffs on 97% of European exports to India. For Spanish companies looking at India, the tariff wall just got much shorter.

Spain ranks as India's 16th largest foreign investor, with $3.56 billion in cumulative FDI since 2000 per DPIIT data. FDI inflows from Spain jumped to $343 million in 2024, up from $224 million the prior year. Renewable energy, infrastructure, and defence manufacturing are pulling the most capital.

About 70,000 people of Indian origin live in Spain. More than half are in Catalonia, especially Barcelona. Many run retail and trade businesses. The community is small but growing, and it creates a natural bridge between the two economies.

Choose Your Entity Type

Before filing anything, pick the right structure. This choice shapes your tax exposure, compliance load, and fundraising ability down the road.

For most Spanish investors, a Private Limited Company is the right pick. It gives you equity flexibility, clean FDI compliance under FEMA, and the ability to raise external capital later. If you are a professional services firm that does not need outside investment, an LLP works. Branch and Liaison offices require RBI approval and serve narrower purposes.

One thing to flag: the resident director requirement means 120 days in India per year, not 182. Many websites still cite the old number. Section 149(3) of the Companies Act, 2013 sets the current threshold.

FDI Route and Sector Rules

India allows 100% FDI through the automatic route in most sectors. No government pre-approval needed. IT, manufacturing, healthcare, e-commerce (marketplace model), and financial services all qualify for automatic entry.

Government approval is required for defence above 74%, media and broadcasting, multi-brand retail trading, and a handful of other sectors listed under DPIIT's Consolidated FDI Policy (Press Note 2 of 2020, updated periodically).

Prohibited sectors remain off-limits: atomic energy, lottery, gambling and betting, chit funds, Nidhi companies, trading in transferable development rights, and real estate business (not construction development). No foreign investor can enter these regardless of structure.

Press Note 3 of 2020 does not apply to Spanish investors. That restriction targets countries sharing a land border with India: China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, and Afghanistan. Spain is clear.

Where do Spanish companies put their money? The pattern is distinctive. Renewable energy tops the list. Spain is a global leader in wind power, and companies like Siemens Gamesa have built manufacturing capacity across India. Infrastructure is second: highways, transmission lines, tunnels, metro systems. Defence manufacturing is the emerging story, anchored by the Airbus-Tata C295 plant. Metallurgical industries and ceramics round out the picture.

Step-by-Step Registration Process

Document Checklist and Authentication

• Passport copy (all pages, notarized by a Spanish Notario)
• Address proof (utility bill or bank statement, less than 2 months old, notarized)
• Passport-size photographs
• Bank reference letter or last 6 months' bank statements
• Board resolution or authorization letter (if corporate shareholder)
• MOA and AOA (drafted and notarized)
• Director declarations (INC-9)
• Proof of registered office in India (lease agreement or utility bill)

All foreign documents must be apostilled in Spain. Match each document type to the right apostille authority. Notarial documents through the Colegio Notarial. Administrative documents through the Ministry. Missing or incorrectly apostilled documents will bounce back from MCA, adding weeks to your timeline.

One advantage: Spain's apostille process is relatively fast. Notarial apostilles can be done in 1-3 business days. Compare that to the US, where federal apostilles take 5-8 weeks by mail.

India-Spain DTAA: Tax Rates at a Glance

The India-Spain Double Taxation Avoidance Agreement was signed on February 8, 1993, and came into force on January 12, 1995. An amending protocol was signed on October 26, 2012, effective December 29, 2014.

A few things worth knowing. The royalty and FTS rates dropped from the original treaty levels to 10% through the Most Favoured Nation (MFN) clause. The India-Spain DTAA contains an MFN provision that lets Spain import lower rates from other Indian treaties. Since the India-Germany DTAA provides 10% for royalties and FTS, Spain gets the same benefit. The Ministry of Finance confirmed this through a notification dated March 19, 2024, applicable from FY 2023-24.

Surcharge and health and education cess are not levied on top of treaty rates. This matters because domestic rates with surcharge can push the effective rate above 20%.

To claim treaty benefits, you need a Spanish Tax Residency Certificate (Certificado de Residencia Fiscal) from the Agencia Tributaria (AEAT). Get this before making any remittance. Without it, the Indian payor must deduct TDS at the higher domestic rate.

Realistic Timeline: 6-8 Weeks, Not 7 Days

Ignore the "register in 7-15 days" claims. That timeline assumes apostilled documents in hand, DSC ready, and zero queries from MCA. For a Spanish investor starting from scratch, that never happens.

Here is what actually takes time:

• DSC + DIN: 1-3 days
• Name reservation: 1-4 working days
• Document preparation and apostille in Spain: 1-2 weeks (faster than most countries)
• SPICe+ filing to Certificate of Incorporation: 5-15 working days
• Bank account opening: 2-4 weeks (stricter KYC for foreign-owned companies)
• GST registration: 1-3 weeks

Total realistic timeline: 6-8 weeks from start to operational. Spain's faster apostille process shaves a week off compared to the US or Australia, but the Indian side takes just as long regardless. The 4.5-5.5 hour time zone gap is manageable. Most back-and-forth can happen within the same business day.

Post-Registration Compliance Calendar

Registration is the start, not the finish. Here is what hits your desk every year:

• Within 30 days of share allotment: File FC-GPR (Foreign Currency Gross Provisional Return) with RBI through your Authorized Dealer bank. Miss this and you are in FEMA violation territory.
• Board meetings: Minimum 4 per year for Private Limited companies. Not more than 120 days between consecutive meetings.
• AGM: By September 30 each year.
• AOC-4: File within 30 days of AGM (financial statements).
• MGT-7: File within 60 days of AGM (annual return).
• Statutory audit: Mandatory every year. No exceptions for foreign-owned companies.
• Income tax return: Due by October 31 for companies requiring audit (all foreign-owned companies do).
• GST returns: Monthly GSTR-3B and GSTR-1 if registered. Quarterly option below Rs 5 crore turnover.
• Transfer pricing: If your Indian subsidiary transacts with the Spanish parent, maintain documentation under Section 92D of the Income Tax Act. Indian tax authorities watch cross-border related-party transactions closely.

Bank Account Opening: Plan for Delays

Opening a current account for a foreign-owned Indian company takes 2-4 weeks. Banks run additional KYC checks when directors or shareholders are foreign nationals. You will need FATCA/CRS declarations, Authorized Dealer bank verification, and in many cases a physical visit by at least one director.

Private banks like HDFC, ICICI, and Kotak tend to process foreign-owned company accounts more smoothly than public sector banks. Ask which branch in your registration state handles foreign company accounts. Not every branch does.

For EU investors, Common Reporting Standard (CRS) declarations are mandatory. Your Indian bank will report account information to Indian tax authorities, who share it with Spain under CRS automatic exchange of information agreements.

Profit Repatriation

Getting money back to Spain is procedural, not difficult. The main routes: dividends, royalties, management fees, and share buyback.

For any outward remittance, follow this sequence: TDS deduction at source at DTAA rates, issuance of Form 16A (TDS certificate), obtain a CA certificate in Form 15CB, file Form 15CA online on the Income Tax portal, and take these to your Authorized Dealer bank for the wire transfer.

Dividend Distribution Tax was abolished in April 2020. Dividends are now taxed in the shareholder's hands at applicable rates, or DTAA rates if lower. Under the India-Spain DTAA, dividends face a 15% withholding rate. Interest also faces 15%. Royalties and FTS face just 10% thanks to the MFN clause.

Spain taxes worldwide income of its residents. Spanish investors will need to declare Indian income in Spain and claim credit for taxes paid in India, following Spain's domestic credit method to avoid double taxation.

Exit Strategy: Know Before You Enter

Two main options if things do not work out.

Strike-off under Section 248 of the Companies Act, 2013: For dormant companies with no assets or liabilities. The company must not have done business for two financial years. Application to the Registrar, public notice, 30-day objection period, then strike-off.

Voluntary liquidation under Section 59 of the Insolvency and Bankruptcy Code, 2016: For active companies wanting a clean wind-down. Special resolution, appointment of an insolvency professional as liquidator, and a structured process that typically runs 6-12 months.

Neither is quick. But knowing your exit before you enter is basic planning.

How Beacon Filing Helps

We handle the complete India entry process for investors based in Spain. 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

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 France
• Register a Company in India from Portugal

Get in Touch

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

WhatsApp: +91 874 501 3644 | Email: hello@beaconfiling.com