Register an Indian Subsidiary

Indian subsidiary Registration

What is Indian subsidiary

An subsidiary company in India is a company that is incorporated in India but is controlled by a foreign company or entity. The foreign entity holds a majority stake in the Indian subsidiary, usually through ownership of shares.

Setting up an Indian subsidiary can provide a foreign company with various advantages, such as access to the Indian market, lower costs of production, and favorable tax policies. It can also provide a level of protection for the parent company by limiting liability to the assets of the subsidiary.

Indian subsidiary of a foreign company, To set up an Indian subsidiary, a foreign company needs to follow the procedures for company registration in India. It is recommended to seek the assistance of a legal professional or a company registration service to ensure that all the requirements are met in compliance with Indian laws and regulations.

Indian Subsidiary

Benefits

There are several benefits of setting up an Indian subsidiary for a foreign company, including:

Access to the Indian market

India is a fast-growing market with a population of over 1.3 billion people, and setting up a subsidiary in India can provide a foreign company with access to this vast market.

Favorable tax policies

The Indian government offers several tax incentives and exemptions to foreign companies setting up a subsidiary in India, such as tax holidays, reduced tax rates, and tax exemptions on exports.

Lower costs of production

India offers a low-cost manufacturing base, with competitive labor costs and a vast pool of skilled and unskilled workers. Setting up a subsidiary in India can help a foreign company reduce its production costs and increase its competitiveness.

Intellectual property protection

India has strong intellectual property laws that protect the rights of foreign companies setting up a subsidiary in India. This can provide a level of protection for the parent company’s intellectual property, trademarks, and patents.

Limited liability

A subsidiary is considered a separate legal entity from its parent company, and its liability is limited to the assets of the subsidiary. This can provide a level of protection for the parent company against any legal disputes or liabilities that may arise from the subsidiary’s operations.

Indian Subsidiary

Registration Process

The process of Indian subsidiary registration involves several steps. Here are the general steps involved:

1. Choose a unique name for the subsidiary: The first step is to choose a unique name for the subsidiary, which should not already be in use by any other company in India. You can check the availability of names through the Ministry of Corporate Affairs (MCA) website.

2. Obtain a Digital Signature Certificate (DSC): A DSC is an electronic signature that is used to sign and submit documents electronically. You can obtain a DSC from a licensed Certifying Authority in India.

3. Obtain a Director Identification Number (DIN): A DIN is a unique identification number issued to directors of Indian companies. You can apply for a DIN through the MCA website.

4. Obtain a Permanent Account Number (PAN): A PAN is an individual 10 digit alphanumeric code provide by the Indian Income Tax Department You will need a PAN for your subsidiary to conduct any financial transactions in India.

5. File incorporation documents with the Registrar of Companies (ROC): You will need to file the Memorandum of Association and Articles of Association of your subsidiary, along with other required documents, with the ROC.

6. Obtain a Certificate of Incorporation: Once the ROC approves your incorporation documents, you will receive a Certificate of Incorporation. This certificate is proof that your subsidiary has been legally incorporated in India.

7. Register for taxes: You will need to register for various taxes such as the Goods and Services Tax (GST), Employees’ State Insurance (ESI), and Provident Fund (PF) depending on your business activity.

It is recommended to consult with a legal professional or a company registration service to ensure that all the steps are completed correctly and in compliance with Indian laws and regulations.

Indian Subsidiary

Document required

Photograph

Latest Passport size photograph of Shareholders and Directors

Business Address Proof

Electricity Bill/ Telephone Bill of the registered office address in India

List of Directors & Secretaries

It is to be provided on the letterhead of the company (apostilled or notarized)

PAN Card

PAN Card of shareholders and Directors.

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Place of Business

Full address of the principal place of business of the foreign entity

Identity Proof

Voter ID/ Passport/ Driving License of Shareholders and Directors

Rent Agreement

Rent Agreement of the registered office should be provided, if any

Authorised Representative

Name and address of the person (Authorized Representative) who shall receive legal documents on behalf of the company

Address Proof

Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors

Constitutional documents

An apostilled copy of the charter, statutes or memorandum and articles.

Prior registrations

Details of opening and closing of a place of business in India on earlier occasion