GCCs and most professional services take 100% FDI without prior approval
Captive centres are usually wholly owned private companies. The caps below come from the Consolidated FDI Policy as amended by later Press Notes; professional regulators’ rules apply on top of the FDI position.
| Activity | Cap and route | Key conditions |
|---|---|---|
| IT, ITeS and BPM, engineering, R&D and consulting services | 100%, automatic route | Not listed in the FDI policy; for unlisted sectors FDI is permitted up to 100% under the automatic route, subject to applicable laws, pricing rules and FEMA reporting. |
| Limited liability partnership (LLP) | 100%, automatic route | Allowed for LLPs in sectors where 100% FDI is automatic and there are no FDI-linked performance conditions. A company or LLP with FDI may invest downstream on the same basis. |
| Legal services by foreign lawyers and law firms | Registration with the Bar Council of India | BCI rules of March 2023, amended on 13 May 2025: registered foreign lawyers and firms may advise on foreign and international law and arbitration, in non-litigious work only; no practice before Indian courts. |
| Global In-House Centre in GIFT IFSC | IFSCA registration | Group finance and operations centres in the IFSC are regulated by IFSCA. After reviewing its 2020 GIC regulations, IFSCA approved the IFSCA (Global In-House Centres) Regulations, 2025 on 22 December 2025. |
| Investors with land-border beneficial owners | Government route; automatic up to 10% non-controlling | Press Note 2 (2026), given legal effect on 2 May 2026: beneficial ownership tested as under PMLA (over 10% or control). Up to 10% non-controlling is automatic, with prior reporting on the FIF/NSWS portal; otherwise government approval. |
Reading the table
Unlisted means open. IT, ITeS, BPM, engineering, R&D and consulting do not appear as named sectors in the FDI policy. Under para 3.2.4 of the Consolidated FDI Policy, a sector that is not listed and not prohibited is open to 100% FDI on the automatic route, subject to applicable laws, pricing rules and FEMA reporting. No prior approval is needed; the obligations are the post-investment filings described on the regulators and registrations page.
LLPs. An LLP can take 100% FDI on the automatic route only where the sector is fully open and carries no FDI-linked performance conditions, which is the case for these services. The same test applies to downstream investment by a company or LLP that itself has FDI. The entry vehicle comparison is on the set-up roadmap page.
Foreign lawyers. The question for a foreign law firm is not an FDI cap but Bar Council of India registration. Under the BCI rules of March 2023 as amended on 13 May 2025, a registered foreign lawyer or firm may advise on foreign and international law and arbitration in non-litigious matters only, and may not practise before Indian courts.
GIFT IFSC. A group finance or operations centre set up inside the IFSC is regulated by IFSCA under the Global In-House Centres Regulations, 2025, approved on 22 December 2025 after a review of the 2020 regulations. The related tax position (a 100% deduction for 20 of 25 years) is on the tax and zones page.
Land-border investors. Press Note 2 (2026) was issued on 15 March 2026 and given legal effect on 2 May 2026. Beneficial ownership is tested as under the PMLA, meaning more than 10% or control. A holding of up to 10% that is non-controlling is on the automatic route with prior reporting on the FIF/NSWS portal; anything above that needs government approval. The joint-venture table on the set-up roadmap page notes the 60-day decision target for land-border investors taking up to 49% in a fast-track sector where resident Indians keep majority ownership and control. See land-border investors for the general rule.
Other conditions stated in the sources
- A wholly owned private limited subsidiary needs no approval on the automatic route unless there is a land-border beneficial owner; otherwise the government route applies.
- Shares issued to the foreign parent must be priced at not less than fair value and allotted within 60 days of receipt of the money, and the issue reported on Form FC-GPR within 30 days (RBI FEMA 395).
- A branch office may carry on activities RBI permits for branches, such as export and import, consultancy and research on behalf of the parent; it is opened through an authorised dealer bank, with RBI approval in specified cases such as defence or telecom.
- A liaison office may not carry on business; a project office executes a specific contract.
Check: The FDI route is the same for a captive serving its parent and for a services business selling to Indian clients, but the transfer pricing, GST and PE positions differ. See tax and zones.
What to check next
- Map every shareholder up the chain for land-border beneficial ownership before choosing the vehicle; the test is more than 10% or control.
- If an LLP is preferred, confirm the activity carries no FDI-linked performance condition, including for any downstream investment.
- For a legal practice, confirm BCI registration scope and that the planned work is non-litigious.
- For a finance centre in GIFT IFSC, confirm with IFSCA that the planned activity falls within the 2025 GIC Regulations.
- Read the general FDI routes and caps page for pricing and reporting rules that apply to every sector.