Indian subsidiary company registration
- 10+ Years of Experience
- 400 + In-House CAs, CS & Lawyers
- 99% SLA Delivery
- 10,000+ Pin codes Network in India
1000+
Happy Clients500+
Expert Advisors10+
Years of Experience
Rated 4.9 By 10,000+ Customers.
10K+ Global Brands That Trust Us!
Talk to an Expert
Expertise in INDIAN SUBSIDIARY COMPANY REGISTRATION
(5)
Enquiry Form
Among Asia Top 100
Consulting Firm
Get Consultation
Lowest Fees
1000 + Clients.
Overview
India presents vast opportunities for businesses with its skilled workforce and growing market. Many foreign investors choose to establish an Indian subsidiary company to tap into the thriving business ecosystem.
The registration of an Indian Subsidiary Company is governed by the Companies Act, 2013. An Indian Subsidiary Company refers to a business entity where a foreign company owns a significant stake, enabling it to operate and expand in India.
Regulatory Framework
According to Section 2(87) of the Companies Act, 2013, a company is considered a subsidiary if another entity holds more than 50% of its equity share capital or has the power to appoint or remove most of its board of directors.
The regulatory framework requires compliance with provisions under the Companies Act, SEBI regulations, and Ministry of Corporate Affairs (MCA) guidelines. These laws ensure transparency, financial reporting, and control over corporate governance, preventing fund mismanagement and unauthorized cross-holdings.
Advantages
1. Market
Expansion Opportunities – India’s competitive business landscape
offers numerous investment opportunities for foreign entities.
2. Foreign
Direct Investment (FDI) Potential – Indian subsidiary registration is
an excellent route for foreign investors to access India's FDI advantages.
3. Perpetual
Succession – The subsidiary continues to exist irrespective of
ownership changes.
4. Limited
Liability Protection – Shareholders' personal assets are safeguarded
from company liabilities.
5. Separate
Legal Entity – The subsidiary company can own assets, enter contracts,
and conduct business independently.
6. Property
and Rights Ownership – It can own property, providing greater
operational flexibility and reducing conflicts among stakeholders.
Eligibility Criteria
To register an Indian subsidiary, the following conditions must be met:
1. Minimum
of two directors, with at least one being an Indian resident.
2. Directors
must obtain a Director Identification Number (DIN).
3. No
minimum capital requirement.
4. Minimum
of two shareholders (individuals or entities).
5. Compliance
with MCA and Registrar of Companies (RoC) regulations.
6. RBI
approval is required for foreign currency transactions.
7. The
parent company must hold at least 50% of the equity share capital.
Documents Required
1. Address
Proof – Rental agreements or utility bills verifying the registered
office.
2. Identification
Documents – Passports and bank statements for foreign nationals, PAN
cards for Indian nationals.
3. MoA
& AoA – Memorandum and Articles of Association outlining the
business structure.
4. Power
of Attorney – Authorization for a designated person to act on behalf
of the company.
5. Certificate
of Incorporation – Parent company’s incorporation proof and the Indian
subsidiary’s registration document.
6. Director
and Shareholder Details – Digital Signature Certificates (DSC),
shareholding structure, and declarations from directors.
Registration Procedure
1. Choose
a Unique Company Name – The name must comply with MCA naming
guidelines.
2. Obtain
DIN and DSC – Required for company directors to submit online
applications.
3. File
Incorporation Documents – Submit MoA, AoA, and necessary applications
to the MCA.
4. Obtain
Certificate of Incorporation – Upon approval from MCA, the company
receives its registration certificate.
5. Open
a Bank Account – Essential for managing financial transactions.
6. Register
for Taxation – Obtain PAN, TAN, and GST registration as applicable.
7. EPFO
& ESIC Registration – Mandatory for employee benefits and social
security compliance
Registration Fees
The cost of registering an Indian subsidiary ranges between 50,000rs to 1,00,000rs, covering government fees, legal expenses, and professional consultation charges.
Fastzeal Support
Fastzeal provides expert assistance in registering your Indian subsidiary
seamlessly. Our services include:
1. Guidance
on name selection and regulatory compliance.
2. Obtaining
DSC, DIN, and filing necessary incorporation documents.
3. Liaising
with the RoC for smooth application processing.
4. Assisting
in post-registration compliance, tax filings, and bank account setup.
5. Ensuring
annual return submissions and statutory compliance.
Frequently Asked Questions:
The basic rules indicate that no matter where the parent company is located, at the time of registering an Indian subsidiary company in India, the company has to be registered in India. .
Yes, the subsidiary and parent company hold a legal entity.
If the parent company has a 50% or more controlling interest in a subsidiary, that company is a subsidiary.
When the parent company or the holding company owns all the shares of the subsidiary company.
The article of incorporation or formation of both the parent company and subsidiary company mentions the ownership structure to prove that the company is a subsidiary company.
The parent company holds a subsidiary company.
A private company is eligible to have or form a subsidiary company in India.
The following are examples of a Subsidiary company in India: Microsoft India, a wholly owned subsidiary of Microsoft Corporation; Maruti Suzuki, a subsidiary of Suzuki Motor Corporation; and many more.
Yes, a subsidiary company can register under start-up schemes in India if it meets the eligibility criteria under the Startup India initiatives, such as scalability and incorporation within the past 10 years.
Yes, the Indian subsidiary company required a board of directors.
