Incorporation of Indian Subsidiary
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Introduction of Set-up of Indian Subsidiary
There are many foreign companies who wish to start their operations in India and grab the fastest growing market. The Companies Act 2013, provides a channel where the foreign companies can open companies in India, subject to FDI Policy by investing in the equity. These companies are called Indian Subsidiary Company.
An Indian subsidiary Company is the Company which can be incorporated under Companies Act, 2013 which is controlled (more than 50%) or managed by another Company i.e. its Parent Company incorporated outside the Country.
The Paid Up Share Capital of such Company can be either fully owned or owned in part by the Parent Company. The Company whose Paid Up share Capital is fully owned (100%) by the Parent Company is known as Wholly Owned Subsidiary and a Company whose Paid Up share Capital is partly owned is referred to as Subsidiary Company .
FDI in private limited companies is allowed subject to FDI Policy of India. The categorization has been done under two categories automatic route and approval route. Before incorporating the company first of all we need to check the sector in which investment has to be made and follow the compliances as applicable under FDI.
Compliance Sagar offers Indian Subsidiary company Registration for Foreigners who are looking to Setup Foreign Company in India. Compliance Sagar has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for Setting up of an Indian Subsidiary/ Foreign Company and Compliance services.
Advantages of Indian Subsidiary Company Registration
Limited Liability
The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it and it is a legal entity which means it is different from its Members and Directors.
No minimum Capital Required
For incorporating a Foreign Company no minimum capital is required and the capital structure may be altered in accordance with the growth requirements of the Company at later stage.
Separate Legal Entity
Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc. The dissolution of the Parent Company does not affect the life of its Subsidiary.
Increase in security
Employees prefer to join the Private Limited Company and vendors feel secure in offering credit, the trust and confidence of customers increases which ultimately result in the rise of investment from the investor.
Easy availability of funds
The expansion scope is higher due to easily availability of funds from a venture capitalist, financial institutions, angel investors offering more transparency.
Increase in FDI
Attraction of Foreign Direct Investment in India in accordance with the guidelines issued from the government with or without the approval and considering the sectoral cap.
Minimum Requirements for Indian Subsidiary company Registration
Documents Required for Indian Subsidiary company Registration
PAN Card of the Member and Directors of the proposed Company, Passport in case of Foreign Nationals
Identity Proof of the director and nominee (Aadhar / Voter ID / Driving License / Passport)
Latest passport size photograph of Member and Directors
Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
Address Proof the director and nominee (Utility Bill / Telephone Bill / Mobile Bill / Bank Statement not older than two months)
Business Address Proof Rented/leased: (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)
Board Resolution from the parent Company for incorporation of the subsidiary in India
Incorporation documents of the Parent Company and KYC of authorized representative
Note :- In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostilled and the documents must have been translated in English language other than the respective language of the said Country.
Process of Indian Subsidiary company Registration
More Insight on Indian Subsidiary Registration for Foreigners
How to Select the Name of Company
- You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
- Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Compliance Sagar by clicking on the below mentioned link Trademark Registration
Other Key Points
- If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Compliance Sagar, who offers Indian Subsidiary Registration for Foreigners.
- The private limited company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Compliance Sagar has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.