Indian Subsidiary Company

Indian Subsidiary |how to apply |registration 2020

Indian subsidiary company is the type of business entity in which a firm or share in any firm is owned by the foreign enterprises. In a broader sense it means that a company is Indian subsidiary when more than 50% of the shares are owned by the foreign firm. Many foreign companies have shown interest to start operations in India and ready to enter into the world’s fastest growing economy. Foreign entities prefer Indian subsidiary company registration because they can easily purchase the shares of any firm to enter the Indian market. Foreign entities save much of their time by directly investing in an established India company.

Under the FDI policy a foreign nation can invest and start a business in India. There are two categories of making investment in India either through automatic route or approval route. In automatic route no prior regulatory approval is required for investment in the Indian company. Investment in firms where an automatic route is not permissible can be done only with the approval of Reserve Bank of India.

Advantages of India Subsidiary Company

Separate legal entity:
A subsidiary of foreign entity is a separate legal entity which is established under the government act.

Foreign direct investment:
Under the foreign direct investment act, Government of India allowed 100% investment in some sectors for the foreign companies. FDI takes prior permission from the government but it is mandatory for the India subsidiary company.

Easy Transferability:
The shares of the firm can easily be transferred from one foreign national entity to others.

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Procedure for Indian subsidiary company registration

  • Digital Signature Certificate
    The director of the firm should have a digital signature. In this the foreign national should also have the digital signature which is to be used to file the registration, ROC compliance forms and the tax returns of the company.
  • Director Identification Number
    When the digital signature is approved you will get an email from Registrar of the company for your eligibility to be the director of the company. It would take 2-3 working days to approve the DIN of One person company registration.
  • Name Reservation
    After DIN allotment, the other vital step is to file a ‘name approval application’ to ROC on your company’s behalf
  • Final Incorporation and CIN
    After name approval from the registrar of the company we will file the incorporation form with all supporting documents. The registrar of the companies takes 3 working days to complete the approval.

Documents required for Indian Subsidiary company registration

  • PAN Card
    PAN card of the directors, and shareholders. In Indian subsidiary company a copy of a passport from Foreign director is entailed.
  • ID Proof
    Aadhar card, voter Id and driving license of a shareholder and director
  • Address proof
    Telephone bills, electricity bills, water bills and bank statements are also required for the private limited company registration. These documents must not be older than two months of the current date.
  • Scanned passport size photo of the director: Latest passport sized color photos of the directors and shareholders.
  • Registered office proof
    Latest telephone bill, water bill and electricity bill of the registered office

Frequently Asked Questions