indian subsidiary of a foreign company

Indian Subsidiary Company Registration

Register an Indian Subsidiary of a Foreign Company with expert assistance and step-by-step guidance through Tax Robo. Find out the criteria and eligibility today.


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Incorporation of a wholly-owned subsidiary in India Under the Companies Act 2013


Section 2(87) of the Companies Act 2013 the term 'subsidiary company' or 'subsidiary' wherever appearing in the Companies Act, 2013 shall have the following meaning: "Subsidiary company" or "Subsidiary, in relation to any other company (that is to say the holding company), means a company in which the holding company

controls the composition of the Board of Directors or
exercises or controls more than one-half of the total share capital either on its own or together with one or more of its subsidiary companies
As the name says, a Subsidiary Company is a company (often small) that plays its role as a helper to a bigger corporation, one which also owns it.

The company that owns the subsidiary company is called the Parent Company or Holding company.

The Parent company can either own 100% of the subsidiary, in such case, it is called a wholly-owned or fully-owned subsidiary, or it can own a majority of shares (more than 50%).

The majority of the shares in the subsidiary thus enjoy decision-making powers and complete authority.

Advantages of an Indian Subsidiary Company Registration  


Opening an Indian subsidiary company comes with many advantages, some of which can be noted:

Separate legal existence: An Indian subsidiary company is a separate legal entity from its parent company, no matter if the parent company is Indian or foreign.

Permission to buy assets in India: A subsidiary company is allowed to purchase assets such as properties or Businesses in India.

Easy transfer of Shares: A shareholder can swiftly transfer shares to another person or entity, post signing a share certificate & share transfer.

Permission to accept investment from foreign companies: An Indian subsidiary company can allow foreign direct investment for capital raising, in exchange for shares & partnership.


How to Incorporate a subsidiary company in India?

The following steps will assist if one wishes to incorporate a subsidiary company in India.


To incorporate an Indian subsidiary company, it is important that the company to be formed must have at least 2 Directors and 2 shareholders. A registered office space is also necessary.

It is essential to apply for a company name by filling form INC-1 according to the name application process.

Once the Company name is approved by the Registrar of Companies (ROC), next step is to file form INC-7 (Application for incorporation), form DIR-7 (Particulars for appointment of Directors) & form INC-22 (Memorandum of agreement).

Step 5 : Submission of final application and filling of registration fee.

Finally when all the documents have been submitted, the ROC verifies all documents and if everything is alright, issues the certificate of incorporation via email.​

All this sounds easy but looks rather complicated. I need professional help. Can anyone help?

Tax Robo is at your service. Right from accumulating documents to incorporation to even suggesting post-incorporation tools to help your Business, we've got everything covered.

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Subsidiary Company Registration Packages

Basic Package

₹27499 .00

* All Exclusive

  • MOA & AOA Drafting
  • Digital Signature Certificate 2 Years Validity (2 Persons)
  • Name Approval
  • PAN & TAN
  • Incorporation Fees Authorised Capital Of Rs.10 Lakhs
  • GST Registration
  • Incorporation Certificate
  • Share Certificate
  • Appoint First Auditor of the Company
  • Free Bank Account Opening

Family Auditor

₹34999 .00

* All Exclusive

  • MOA & AOA Drafting
  • Digital Signature Certificate 2 Years Validity (2 Persons)
  • Name Approval
  • PAN & TAN
  • Incorporation Fees Authorised Capital Of Rs.10 Lakhs
  • GST Registration
  • PF & ESI Registration
  • Incorporation Certificate
  • Share Certificate 
  • Appoint First Auditor of the Company
  • Free Bank Account Opening
  • Statutory Registers and Records
  • Free Experts Consulting  

Important Steps Before Registration of Indian Subsidiary Company

Knowledge of the Business

✓ Do you have previous experience in the same Business? how many years?

✓ Product analysis with the questions of whether the product is under any restricted sales in India eg. Cement, Steel.

Marketing Strategy

✓ Marketing strategy is available with target customers.

✓ Pricing of products and margin available in the product.

Growth of the Business

✓ Growth of the Business in India for the next 5 to 10 years.

✓ Feasibility report of the Business and products.

✓ Business plans and projected Financial Product for 5 years.

Funds – Working Capital

✓ Sufficient working capital required for running the Business for a minimum period of 3 months. The funds can be own funds or Bank funds.

✓ How many months of Investment in the Business have required, returns on investments, and working capital funds available for fixed expense months?

Subsidiary Company Registration Process Online in India - Simple Steps

Step 1

Obtain Dsc for Directors And Apply for Name Approval (After Check Company Name Availability)

Step 2

Incorporation Of Documents (Draft Sent To You For Confirmation)

Step 3

File Spice + Forms

Step 4

Get Incorporation Certificate, Pan, TAN & Bank Accounts

Documents Required For Incorporation Of A Private Limited Company


ID Proof

Scanned copy of PAN Card, Voter ID, Passport , Driving License

Registered Office Proof

No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property) / Registry Proof or House Tax Receipt (in case of owned property)

Address Proof

Latest Bank statement/ Utility bill in the name of director which should not be older than two months

Photo

Latest passport size photograph

Compliance After Incorporation Of Private Limited Company


Statutory Obligations

✓ File GST return every month without delay

✓ PF & ESI return filing

✓ TDS Payments & Return filings

✓ Advance Tax payments

✓ File Income Tax return by every year before due date

Compliances

✓ GST registration

✓ PF & ESI Registration if applicable

✓ Profession Tax registration

✓ Import & Export Code registration

✓ STPI Registration / SEZ registration

✓ Secretarial compliance required for passing resolutions, Change in Management, entering contracts, loan obligations etc

Accounts & Operations

✓ Open a Bank account with one Private Bank and one scheduled Bank

✓ Get one accounting software with GST facility

Performance

✓ Review Financial Products performance by every 3 months

✓ Compare the budget amount with actual Financial Products results