Investing from Japan

Last updated 18 October 2026 · By Pradeep Kumar, India Solar

In short: an investor from Japan can buy the Indian company that owns an operating solar plant under India's automatic foreign-investment route. India withholds 10% tax on dividends paid to investors from Japan who give a tax residency certificate and Form 10F. Joint Crediting Mechanism with India since 2025.

Your home-country rules

Outward direct investment is free in principle; post-investment reporting applies above a threshold under the Foreign Exchange Act.
Japanese companies holding 25% or more for six months can exclude 95% of foreign dividends from tax.

Tax treaty and legal protection

India–Japan tax treaty: 10% Indian withholding on dividends and interest.
Investment protection comes from the India–Japan Comprehensive Economic Partnership Agreement (2011).

Documents you will need

Certificate of registered matters or passport
Tax residency certificate and Form 10F
Beneficial owner list

How we work with investors from Japan

Yen hedging and JBIC or NEXI cover can be discussed for larger acquisitions.
India and Japan signed the Joint Crediting Mechanism in August 2025; eligibility of plain solar projects is still to be confirmed.

Related guides

Sources

Information as of October 2026. General information only, not tax or legal advice; rules change and depend on your circumstances.