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Indian Subsidiary Company Registration - An Overview

India is progressing at a fast pace, offering numerous opportunities for growth and business expansion. The country has an incredibly talented workforce and pro-business policies, attracting foreign investors. Today, many foreign entrepreneurs are looking for a way to enter the Indian market. They are opting for Indian subsidiary company registration to capitalize on the Indian startup ecosystem's potential. Register your business in India with 100% foreign ownership.

An Indian Subsidiary Company is defined as a company in which a foreign parent company owns a minimum of 50% share capital in a company registered in India. The Companies Act, 2013, governs it and is often referred to as a sister company. To get expert assistance in Indian subsidiary company registration, talk to our experts at Corpbiz.

Indian Subsidiary Company Registration
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What is a Subsidiary Company?

What is a Subsidiary Company?

A company is considered a subsidiary when another company, typically the parent company, holds more than half of its nominal value of equity share capital. A subsidiary company operates under the ownership of the parent company but maintains its own operations and tax benefits.

What are the Benefits of an Indian Subsidiary Company Registration?

The merits of an Indian subsidiary company registration are mentioned below-

Benefits of an Indian Subsidiary Company Registration
Opportunity for Market Entry

Opportunity for Market Entry

India’s competitive market landscape presents numerous investment opportunities, attracting foreign entrepreneurs to establish subsidiary companies.

100% Ownership

100% Ownership

You can establish your foreign entity with 100% ownership. It is one of the significant benefits of Indian subsidiary company registration.

100% FDI

100% FDI

Yes, 100% FDI is permitted in Indian subsidiary company for most sectors, especially under the automatic route.

Tax and Financial Benefits

Tax and Financial Benefits

Indian subsidiary company registration provides you with access to India’s attractive tax and financial benefits, including incentives and deductions.

Limited Liability Protection

Limited Liability Protection

Registering an Indian subsidiary company will give you limited liability protection. Allowing you to protect your personal assets from company liabilities.

Ownership of Property Rights

Ownership of Property Rights

The Indian subsidiary companies have the authority to acquire property for business purposes. This gives you the flexibility for operational independence.

Perpetual Succession Assurance

Perpetual Succession Assurance

Indian subsidiary companies will enjoy the benefit of perpetual succession regardless of any changes in ownership, management or financial status.

Separate Legal Entity

Separate Legal Entity

The subsidiary companies in India are legally recognised as separate legal entities. This allows you to enter into contracts and agreements and own properties.

No Minimum Capital

No Minimum Capital

To incorporate an Indian subsidiary company, you do not require a specific minimum capital, which reduces the financial burden on entrepreneurs.

Eligibility Criteria for Subsidiary Company Registration in India

The eligibility criteria for subsidiary company registration in India are listed below:

  • The parent company must hold a minimum of 50% share capital in the company.
  • A minimum of two directors for incorporation, and one director must be a resident of India.
  • Every director of an Indian subsidiary company must have a Director Identification Number (DIN).
  • A minimum of two shareholders is required; they can either be a legal entity or an individual.
  • Get approval from the RBI to regulate the foreign currency exchange and maintain compliance.
  • Ensure compliance with the rules and regulations set by the Registrar of Companies and the Ministry of Corporate Affairs.

Regulatory Framework for Subsidiary Company Formation in India

The regulatory framework for a subsidiary company formation in India is as follows:

  • The Companies Act 2013 for company incorporation and board structure.
  • The Foreign Exchange Management Act (FEMA), 1999 to regulate FDI.
  • Reserve Bank of India (RBI) to ensure compliance with foreign exchange and enforce FEMA.
  • Ministry of Corporate Affairs (MCA) to outline company registration and laws.
  • Securities and Exchange Board of India (SEBI) is required for listed subsidiary companies.
  • Income Tax Act, 1961, to oversee income tax and other taxes.
  • GST laws to ensure compliance with the indirect taxes.
Documents Required for Indian Subsidiary Registration Online?

What are the Documents Required for Indian Subsidiary Registration Online?

The documents required for Indian subsidiary registration online are as follows:

  • Copy of passport
  • Address Proof
  • Latest bank statements
  • Memorandum of Association
  • Articles of Association and Capital Layout
  • Power of Attorney
  • Certificate of Incorporation
  • Digital signature certificate
  • Director Identification Number (for directors)
  • Details of shareholding
  • Declaration by shareholders and directors

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How to Apply for Indian Subsidiary Registration Online?

Given below are the steps to apply for Indian subsidiary registration online-

  • Choose a Company Name – Choose a company name for an Indian subsidiary company & the name selected must adhere to the guidelines set by the Ministry of Corporate Affairs.
  • Obtain DIN & DSC – To file documents online with the Ministry of Corporate Affairs, every proposed director of the Indian subsidiary company will need to obtain a DIN & DSC.
  • Filing of Incorporation Documents – Once the DIN & DSC are secured, the company may move forward with filing the incorporation documents, like the MoA & AoA, with the Ministry of Corporate Affairs.
  • Obtain a Certificate of Incorporation – After the incorporation documents are filed, the MCA reviews & approves the application, upon which the subsidiary company is issued the Certificate of Incorporation.
  • Open a Bank Account – After obtaining the Certificate of subsidiary company registration in India, the company must proceed to open a corporate bank account & this process can be completed online and within a week.
  • Register for Tax – The subsidiary company will need to register for tax & obtain a Tax Account Number (TAN), Value Added Tax (VAT), GSTIN & corporate income tax.
  • Registration of EPFO & ESIC – Subsidiary companies will also need to ensure compliance & register with the Employees’ State Insurance Corporation & the Employment Provident Fund organisation.
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What are the Types of Subsidiary Companies in India?

There are various types of subsidiary companies in India, such as:

Type of Entity Description Best Suited for
Wholly Owned Subsidiary Company Parent company owns 100% shares of the subsidiary company. Ideal for subsidiaries looking for control and growth.
Partially Owned Subsidiary Company Subsidiary company with 50% shares owned by the parent company, but does not have 100% control. Preferred by subsidiaries that want shared ownership.
Joint Venture Subsidiary Partnership of a foreign company with an Indian company to form a new entity. Ideal for partnership and professional firms.
Liaison Office Only used for research and marketing. Generating income is not allowed. Ideal for companies testing the Indian market.
Branch Office This is an extension of the parent company that functions as a subsidiary. Preferred by foreign companies looking to enter the Indian market.

What are the Key Statistics and Trends for Indian Subsidiary Company Registration?

    • Foreign Investments of $81 Billion in FY 24-25
    • 100% Foreign Ownership Allowed in Most Sectors
    • 75% of FDI-linked Companies are Foreign Subsidiaries
    • Manufacturing Attracts Nearly 50% Foreign Subsidiary Investments
    • Automatic FDI Routes covers Maximum Indian Subsidiary Registrations
    • RBI Reporting Mandatory for all Foreign-funded Subsidiaries
    • Most Subsidiaries Incorporated as Private Limited Companies

What is the Timeline for Indian Subsidiary Company Registration?

The timeframe for the Indian subsidiary company registration process is as follows:

  • Company Name Approval- 2 to 5 Working Days
  • Preparation of Incorporation Documents- 1 to 2 Working Days
  • DIN & DSC Allotment for Directors- 1 to 2 Working Days
  • Filing of Incorporation Forms & MCA Approval- 10 to 15 Working Days
  • PAN & TAN Allotment- Issued along with Indian Subsidiary Registration
  • Bank Account Opening & RBI Compliance- 4 to 8 Weeks
  • Overall Timeline: Legal Incorporation- (15 to 20 Working Days)
  • Complete Subsidiary Setup (Including Banking & RBI): 2 to 4 Months
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What are the Compliance Requirements Post Indian Subsidiary Company Registration?

Have a look at the compliance requirements post Indian subsidiary company registration-

  • Registration of Taxes: The subsidiary company will have to obtain a PAN from the Income Tax department. The company must also register for TAN with the tax authority.
  • Conducting First Meeting: According to Section 173 (1) of the Companies Act, 2013, the company will have to hold its first board of directors meeting within 30 days of incorporation.
  • Display of Company Name: It is compulsory for the Indian subsidiary company to display the company name in the local language at all business locations.
  • Appointment of Auditor: Within the 30 days of company incorporation, under Section 139 (1), the subsidiary company must appoint the first auditor.
  • Disclose Interest: Under Section 184 (1) of the Companies Act, 2013, the directors of the subsidiary company will have to disclose their interest in any company, association or firm.
  • Maintaining Statutory Record: The subsidiary company must maintain a statutory register in the prescribed form at its registered office to avoid penalties.
  • Obtaining Office Address: Companies must have a registered office address within 15 days of company incorporation.
  • Opening of Bank Account: The Indian subsidiary company will have to open a local bank account to ensure smooth financial transactions, even before company incorporation.
  • Preparing Books of Accounts: According to Section 128, the subsidiary companies must maintain proper books of accounts that outline the financial position of the company.

Avoid ₹5–10 Lakh Penalties with Timely MCA & GST Filings.

Why Trust Corpbiz for Indian Subsidiary Company Registration?

10,000+ Professionals

10,000+ Professionals

We have a network of over 10,000 professionals who will assist you with a seamless Indian subsidiary company registration.

Licensing Support

Licensing Support

We will guide you in choosing the right license required based on your business activity and company type.

30-Min Free Consultation

30-Min Free Consultation

The business development associates will offer the first 30-min business consultation free of cost.

Timely Filing

Timely Filing

Our legal team ensures all your company returns are filed on time without any potential delays.

DSC & DIN

DSC & DIN

Our business consultants will handle the DSC & DIN application for your company directors.

Tax Compliance

Tax Compliance

The tax experts at Corpbiz will manage the tax compliances for the company on your behalf.

Frequently Asked Questions about Subsidiary Company Formation in India

Have a look at the answers to the most asked questions about Subsidiary Company Formation.

The rules for Indian subsidiary company registration are as follows:
  • The parent company must own a minimum of 50% shares of the subsidiary company.
  • One Indian director, and the other can be of any nationality.
  • Minimum of two shareholders
  • Compulsory to have a registered office address in India

The parent company or the holding company owns the subsidiary company. A minimum of 50% company shares must be owned by the parent company, ensuring control and ownership.

The essential documents required for Indian subsidiary company registration include address proof, copy of passport, latest bank statements, MOA and AOA, Power of Attorney, Certificate of Incorporation, DSC, DIN, etc.

Yes, if an Indian subsidiary company meets the eligibility criteria of Startup India, it can get registered under the Startup India initiatives. The criteria can include scalability and having been set up within the past 10 years.

The complete setup of a subsidiary company in India can take between 2 to 4 months. However, the registration process can be completed within 2 to 3 weeks.

Yes, foreign companies are allowed to own 100% of their Indian subsidiary company in most sectors after Indian subsidiary company registration. However, the Foreign Direct Investment (FDI) must be under the automatic route.

Yes, subsidiary companies in India must have at least one director who is a permanent resident of India, meaning he or she must have stayed in India for a minimum of 182 days in the last calendar year.

Yes, the entire company registration process of the subsidiary company, including company name approval and submission of documents, can be completed remotely through the MCA website.

Yes, in India, both the subsidiary company and the parent company hold a legal entity after Indian subsidiary company registration.

Yes, directors in an Indian subsidiary company need a special ID, which is the DIN (Director Identification Number).

Indian subsidiaries must conduct AGMs, board meetings, file annual returns (MGT-7), as well as financial statements (AOC-4) with the ROC.

Yes, in case the turnover of Indian subsidiary companies exceeds the GST threshold, or they carry out interstate business. Such companies need to go for GST registration and file regular GST returns.

About the Author


NE
Neha Dawra

Legal Researcher

Written by Neha Dawra. Last updated on Jun 8 2026, 12:40 AM

Neha Dawra has 4+ years of experience in legal research and intellectual property advisory. Her expertise lies in analyzing IP laws, drafting structured legal content, and simplifying complex registration procedures into clear, simple insights.

 

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