We are an ISO certified company
Business Service Provider
REQUEST A CALL BACK
Indian subsidiary is a form of business entity in which the firm is owned by a foreign owned enterprise. In a broader sense it means that the firm is owned by a foreign entity i.e. more than 50 % of shares are owned by a foreign firm. It is one of the efficient ways to invest in the Indian subcontinent because the process if not as much time consuming as the other processes, also there are very less legal formalities involved in this process. Moreover, foreign organizations or firms also prefer this type of investment because they can easily purchase the shares of any firm which they want to takeover and hence, they have entered the Indian market.
Foreign companies can easily establish themselves in the Indian market by purchasing the shares of an established Indian firm or the company. They can than have to only monitor the Indian subsidiary that has been overtaken by them. Moreover, it is far easier to monitor the established firm rather than developing your own market name and brand name in the Indian market.
Foreign companies save much cost and time by purchasing an already established enterprise. This also gives them an already established target consumer group and an already established consumer base. Establishing all these takes years and years of time. And all this the foreign entities are getting at hand; it is a major advantage for them.
Also, the Government India gets the much-needed foreign exchange. Although, there are many advantages but there are numerous disadvantages too. We must note that there is delayed decision making because the orders or the decisions have to be issued from the parent company whose headquarters are located at a far more place than the subsidiary. This also brings a lag in communication which results in sometime wrong information being communicated to the subsidiary. But nevertheless, it is one of the most efficient ways to establish your foot in the Indian subsidiary. And also, it does not involve many legal formalities. Thus , it has many advantages and disadvantages just like other entities.
These days, a lot of outside organizations are intrigued to begin their activities in India and make a hold into one of the world biggest and quickly developing business sector and gain admittance to the absolute best HR in the whole world. A Foreign National (other than a resident of Pakistan or Bangladesh) or an element joined outside India (other than substance consolidated in Pakistan or Bangladesh) can make speculation and submit Indian Subsidiary Company enlistment application inside India by procuring offers of the organization, subject to FDI Policy of India.
In addition, among all the directors, a minimum of one Director who must be an Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India. Investment and acquisition of equity shares of a Company can be broadly divided into two categories: Investment under automatic route and Investment under the Government approval route.
The programmed course requires no necessity of any earlier administrative endorsement for interest in value offers of an Indian business and just post facto recording/suggestion with the Reserve Bank of India inside 30 days of receipt of venture cash in India and recording of recommended reports and points of interest of assignment of offers inside 30 days of apportioning of offers to remote financial specialists.
Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India. Investment in Indian Subsidiary Company where an automatic route is not available can be made with the approval of the Government under the Government Approved FDI method.
A Subsidiary of Foreign company is a separate legal entity and a juristic person established under the Act. Therefore, a company form of organization has a wide legal capacity and can own property and also incur debts. All the directors are not liable for the company debt.
Shares of a company are limited by shares and are easily transferable by a shareholder to any other person by filing a share transfer form and by handing over the same to the buyer.
A company having its own legal entity and legally acquire, own, enjoy and alienate, property in its own name. All the shareholder at the time of Formation of Indian Subsidiary Company is not able to claim the property of the company so long as the company is a going concern.
A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
The Government of India allowed 100% Foreign Direct Investment (FDI) in many sectors through various type of business entity without any prior Government approval. In a proprietorship, partnership or LLP requires prior Government approval for FDI.
7-10 Working Days
Q1. What is an Indian Subsidiary?
Ans. An Indian subsidiary is defined as the one where the shares of the company are in part owned by another company. It is established by those foreign entrepreneurs who do not want to go through the process of establishing the foreign unit but instead are looking for a hassle-free investment scheme.
Q2. What are the documents required to establish an Indian Subsidiary?
Ans. The documents required for the registration of an Indian Subsidiary are: 1. Photo id proof 2. Parent company seal 3. Address proof of business premises 4. Written and signed consent to establish the Indian subsidiary 5. PAN and passport
Q3. Who is eligible to make investment in India as an Indian subsidiary?
Ans. Any company, entity, organization or any other firm can invest in Indian subcontinent in the form of Indian subsidiary.
Q4. Can an individual invest in the foreign subsidy?
Ans. Yes, an Indian citizen can also invest in a foreign subsidy.
Q5. What are the benefits of investing as an Indian Subsidiary?
Ans. There are numerous advantages in investing as an Indian Subsidiary: 1. Easy investment 2. FDI inflows 3. Increase in brand value
Q6. What are the disadvantages of an Indian Subsidiary?
Ans. There are numerous disadvantages of an Indian subsidiary: 1. Limited control 2. Time consuming 3. Too much legal paperworkQ7. Can investment be made in any firm by foreign entities?
Ans. Yes, investment can be made in any firm or business by foreign entities
Q8. Does RBI (Reserve Bank of India) monitors this investment?
Ans. Yes, the RBI does monitor the investments done to establish an Indian subsidiary because it comes under the FDI (Foreign Direct Investment) in the Indian subcontinent.
Q9. Is it advisable to invest as a subsidiary?
Ans. Yes, it is advisable to get converted into a subsidiary because subsidiaries are established by large MNCs which have huge brand value and are leaders in their field.
Q10. How much investment can be done in an Indian firm by a foreign entity?
Ans. At present, the restriction is limited to power projects such as nuclear energy or the projects which are of national security.
Choose The Right Plan For You!
Congratulations! You won an Opportunity to Get the Expert Advice for 100% FREE !CONTACT US
What Makes Us Different From Others?
The licenses registered by us are 100% genuine and are issued by Government of India. However, we will provide you with all the validation, bills and receipts of each submission. Feel free to enquire!
We take full responsibility for our work and will issue you the licenses within the committed time period. Our team understand your problems and will provide full support in order to do the best for our valuable clients.
Don’t worry about the cost of submissions. We are here to provide you with the best at the best possible price. Need a discount? Contact our Sales team today!
GSB Taxation works at a National Level. We have a strong and dedicated team which works in all the 29 States of India.
Our consultancy provides more than 75 services which help in completing the entrepreneur dream of each individual.
We are here to help you! Our strong passionate team and connectivity lead in the completion of the most difficult registrations without any hustle.
GSB is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.Google Certified
GSB is ISO 9001:2015 Certified by UK AS, a leading Certification Body recognized worldwide.UKAS ISO Certified
We at GSB Taxation believe in high quality and exceptional customer service but most importantly, we believe helping others should be the primary purpose of a good service agency. So, we strive to give the best services at the most affordable prices. We’ve come a long way, so we know exactly which direction to take when supplying you with high quality yet budget-friendly services. Whether it is a Private Limited Company Registration, LLP Registration, One Person Company Registration or an FSSAI License Registration, we got it covered. We know that it’s hard for a person to stand on its own. He/she have to think twice before taking any step. Therefore, GSB Taxation offers all of these and other major services with excellent and friendly support in order to do the best for you. We are here to help you in nourishing your business. Trust our dedicated team get ready to live your dreams with us.