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Indian Subsidiary Company Registration with Corpbiz

Transform your vision with Corpbiz into reality: Get started with our Indian Subsidiary Company Registration services today

At Corpbiz, we recognize the value of registering a subsidiary business. It's an essential step to growing your company and accomplishing greater success. Our team of professionals is well-versed in the steps required to register a subsidiary business, having worked in the industry for many years. Because we are knowledgeable about the laws and procedures governing the registration process, we can guarantee a quick and easy registration process of Indian Subsidiary company.

A company that is under the control of another company is called a subsidiary. A parent company, sometimes known as a holding company, is the business that exercises control. Because it has the majority of the subsidiary firm's shares, the Holding company has the ability to exercise control as the main shareholder. The subsidiary company is owned by the holding company. A subsidiary that the holding company owns all of its shares in is known as a wholly owned subsidiary. The holding company can choose to start the subsidiary or purchase it.

Corpbiz provides comprehensive services relating to Indian Subsidiary Company Registration. Our skilled experts provide our clientele with assistance in all work related to essential Documents which are required in the registration process, expert guidance in the whole procedure of Indian subsidiary company registration, Corpbiz also helps in searching a appropriate name for the company as well as approval of the same. Company TAN and PAN services are also included, our skilled professionals hold expertise in drafting MoA and AoA, Corpbiz also helps with obtaining the DSC and DIN as well.

Challenges faced during Indian Subsidiary Company Registration in India

  • Administrative Tasks

Foreign Investment Regulations

There can be various challenges relating to the foreign investment regulations. Many companies establish their subsidiary companies in India. These companies will have to follow the rules and regulations similar to India. Corpbiz can help in overcoming these challenges. Our experts are very well equipped with the corporate rules and regulations and can provide guidance in Indian Subsidiary Company Registration.

Complex Regulatory Environment

Many regulatory frameworks are to be followed at the time of company registration. Our specialists in Indian Subsidiary Company registration will ensure that all the crucial regulations are fulfilled, and the company is registered seamlessly.

Company Name Approval

The name of the company is the most important factor of the company. A company should have a distinct and non-identical name. Any name that is already being used by someone else should not be used. The process of company name search and its approval is very lengthy and complex, and it requires utmost care. Corpbiz will help you in choosing the company name and getting it approved through a hassle-free process.

Documents and Paperwork Filling

Many different types of Documents and paperwork are required to be filled for the Indian subsidiary company registration. It can be time-consuming and challenging to ensure that all the Documents are filled in and filed correctly. Corpbiz will help you to reduce this workload and will do the same on your behalf and will save you time.

Corporate Structure

There are many types of corporate structures present in India. It can be challenging to find the best option of structure for the Indian subsidiary company registration. Corpbiz can help you in choosing the best option after thorough research on all types of structures and while keeping their pros and cons in consideration.

Compliance Requirements

At the time of an Indian subsidiary company registration there are many compliances which are to be followed. Rules and regulations related to the income tax act, FDI, labour laws, corporate laws etc. Corpbiz will offer guidance and assistance in all compliances and ensure that all requirements are fulfilled in specified timelines without any delays.

Benefits of Indian Subsidiary Company Registration in India

  • Local Presence
  • Skilled Workforce
  • Risk Reduction
  • Access to a Major Market
  • Operational Efficiency
  • Favourable Business Atmosphere
  • Sue and Sued
  • Business Activities

Entering into a large market

Getting into a large market India, with more than 1.3 billion inhabitants, is the second most populous country in the world. By establishing a subsidiary in India, international businesses may tap into a massive and expanding market, where demand for a wide range of goods and services is being driven by a fast-increasing middle class.

Limited liability

The Indian Subsidiary Company's directors and members are subject to limited liability. This implies that the members and directors are firmly restricted to the stake of their corporation. In the event of a financial crisis or loss for the company, the limited liability feature shields the directors and members. Even if the firm experiences financial difficulties, the personal assets and properties of the directors and members will not be at risk.

Perpetual succession

Perpetual succession is a notion that guarantees a company's survival in the face of various circumstances, such as insolvency, membership transfers, or changes in management. The business keeps running well, offering continuity and stability.

Labour force is skilled

India boasts a workforce that is highly competent and educated, with a particular focus on STEM (science, technology, engineering, and mathematics) education. Foreign businesses can access this trained workforce in India by establishing a subsidiary, which can spur innovation and growth.

Promotes Foreign Direct Investment

Since foreign direct investment supports rapidly expanding business sectors, the Indian government has approved 100% participation in this type of investment. To be clear, 100% FDI is permitted without any prior clearance. You might need to obtain prior government approval for foreign direct investment (FDI) even if you are an LLP, partnership firm, or proprietorship.

Consolidating local authenticity

Establishing a subsidiary company exposes your organization to regional markets, like the Indian market. Rebuilding and strengthening connections with suppliers and stakeholders can benefit from such an action. This useful tactic could assist you in assessing the local market and developing a business plan appropriately.

Reduction of risk

Because a subsidiary is an autonomous legal entity liable, a subsidiary structure helps to mitigate regulatory risks. For a variety of legal concerns, the parent-subsidiary structure helps to mitigate risks.

Effectiveness of operations

The parent business should also take into account the possibility of dividing a huge company into smaller, easier-to-manage companies in order to increase operational efficiency.

Acquire real estate in India

The ability to purchase real estate in India is granted to foreign subsidiaries that operate under independent legal frameworks.

A conducive environment for business

India has made great strides in recent years to enhance its business environment, with a focus on streamlining regulations and getting rid of bureaucratic obstacles. A more appealing business climate than in many other growing markets can be provided to international corporations by establishing a subsidiary in India.

Borrow funds

One of the advantages of having a fully owned subsidiary in India is that it can obtain loans from banking organizations.

Sue and can get sued by others

Indian subsidiaries are treated like legal persons and are able to file and receive lawsuits.

Investment objectives

Any business that wants to grow or diversify might choose to create a subsidiary company or a totally owned subsidiary. However, the parent company should take into account investment goals and potential transactions in the near future when selecting a subsidiary structure. These include potential joint venture partners, potential additional investors, potential merger and acquisition opportunities, potential divestiture of any portion of the business in the near future, etc.

Commercial operations

A subsidiary would be a better option for a parent company looking to engage in full-fledged business operations in India. Parent companies based outside of India may consider less complex business structures like Branch Offices (BO), Liaison Offices (LO), or Project Offices (PO) if they plan to perform limited activities like representative offices, sourcing, technical and/or marketing support, import and export, etc.

Separate legal identity

A company is recognized as a separate legal entity from its shareholders and directors under the Companies Act. The corporation can enter into agreements with other competent bodies as an artificial legal entity thanks to this legal position. In addition, it gives the business the authority to file lawsuits and address accusations in court under its own name, independent of its directors or members.

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Why Choose Corpbiz for Indian Subsidiary Company Registration?

  • Skilled team of professionals exclusively for Indian subsidiary company registration services.
  • An impressive 99.9% client satisfaction.
  • Corpbiz provided timely and regular updates on Indian subsidiary company registration services.
  • Successfully incorporated many Indian subsidiary company registrations in India.
  • Corpbiz provides unique business solutions for specific business needs.
  • Corpbiz is an AI driven platform for prompt assistance and efficient delivery.
  • Corpbiz has a network of 50,000 + experts in various different fields.
  • Corpbiz consists of experts with decades of experience.
  • Corpbiz follows a client centric approach.
  • Corpbiz has worked with 30,000 entrepreneurs worldwide and has the ability to cater to international clients as well.

Our Indian Subsidiary Company Registration Services

Assistance in paper works services

Corpbiz helps with all Document preparation and gathering of the same. Our experts help with application form filling and submission of the same, along with other essential Documents.

Guidance in Indian subsidiary company registration procedure

Our experts are familiar with the whole company registration process, and hence will guide you in the same way, so that our clients can get a seamless and hassle-free registration process and avoid any delay.

Company name and search approval services

Our services also extend to company name search and its approval as well. We help our clients in choosing a distinct name for the company and help them register and approve the same.

Company TAN and PAN services

TAN and PAN both are equally important compliances for the same. Corpbiz will assist you in applying for PAN cards and TAN number which are necessary for fulfilling tax compliances.

DSC and DIN services

All the directors of the subsidiary company must have a DIS and DIN, only then are they eligible to be a director of the company. Our experts provide assistance in applying for the same.

MoA and AoA drafting services

Corpbiz also avails services related to drafting of MoA and AoA of the company.

Advantages of Our Services

  • Expertise
  • Custom Strategies
  • Staying Updated
  • Legal Compliance

Expertise in Indian Subsidiary Company registration

Corpbiz guides you throughout the entire process of Indian subsidiary company registration process. We will assist and guide you through all legal requirements, paper works works, and other administrative procedures. Corpbiz will ensure that the registration process is streamlined and seamless.

Staying updated with regulatory changes

It is very important to stay updated with the changing laws in the country in relation to Indian subsidiary company registration. Corpbiz helps you to stay in compliance with all these changes by keeping their clients updated about the same.  Staying in compliance helps in avoiding all the penalties and legal issues.

Custom strategies for Indian Subsidiary Company registration

Our professional analyzes the aims and objectives of the business before the Indian subsidiary company registration procedure starts. All the business has different requirements and goals. Corpbiz helps you in choosing the most suitable option with custom strategies. Corpbiz helps you in selecting plans suitable for achieving the aims of the business using tailored solutions.

Assurance of legal compliance

Corpbiz helps in navigating the legal compliance requirements and makes sure that the registration process flows seamlessly.

Our selling points

In navigating the challenges in the Indian Subsidiary Company registration, Corpbiz is your trusted helper. We specialize in Indian subsidiary company registration. Corpbiz's unique advantages and exceptional performance make it distinct from its competitors, ensuring a smooth and efficient registration process.

Client Satisfaction

Our paramount objective is client satisfaction. We always prioritize our clients' needs and ensure that they experience a hassle-free and smooth transition. We acknowledge that all the companies are different, and to achieve success in their own path, we provide tailored solutions as per the requirements of our clients.

Established Track Record

We have a strong track record of effectively registering Indian subsidiary companies, and we've left a legacy of happy customers in our wake. A number of companies have benefited from our proficiency in registering Indian subsidiary companies, which has given them the essential legal basis for their commercial endeavors. Our many years of experience and dependability are attested to by our happy customers.

Transparent Pricing

Transparency is at the core of our fundamental principles. We are in favor of proactive, open price structures that eliminate hidden fees and unpleasant shocks.

Efficiency through technology

Using the latest innovations in technology is a cornerstone of our approach. We use cutting edge technologies to streamline and expedite registration process for Indian Subsidiary Company, including artificial intelligence (Al) and online accounting services. Our use of technology ensures efficiency and accuracy by reducing errors and delays.

What is Indian Subsidiary Company?

A company that is controlled by another business (holding company) is referred to as a subsidiary company under section 2(87) of the Companies Act, 2013. It is crucial to comprehend the idea of a holding company as a result. The Companies Act of 2013 defines a holding corporation in section 2(46). It is a business that owns more than 50% of the shares of another business. As a result, a holding company is a business that has management authority over another business. A company that has more than 50% of its paid-up share capital owned by a foreign corporation is considered an Indian subsidiary.

A subsidiary is sometimes referred to as a sister company, while the company in charge of it is known as the parent company or holding company. The parent company has the right to have full or partial control over the subsidiary company. It is crucial to remember that a subsidiary of a foreign parent business is treated as a separate legal entity and is required to operate in accordance with local laws of the nation in which it is located. Employees of businesses are able to register an Indian subsidiary company as either a public or private limited company.

The primary authority in India that oversees the registration of subsidiary companies is the Ministry of Corporate Affairs (MCA). Furthermore, all company incorporation-related processes are managed by ROC. The Reserve Bank of India is a regulating body as the foreign money exchanged by an Indian subsidiary company is involved.

Types of Indian Subsidiary Company in India

Limited Liability Partnership for Subsidiary Company

A subsidiary company constituted as a partnership is referred to as a Limited Liability Partnership (LLP). Furthermore, this type of subsidiary shields its partners from personal culpability by excluding them from the subsidiary company's debts and responsibilities.

Wholly Owned Subsidiary Company

The parent company owns and runs a wholly owned subsidiary. The subsidiary firm participates as the highest authority in decision-making and has complete control and rights over the parent company. It makes sense that international corporations who want to control their operations in India establish subsidiaries of this type.

Joint Venture Subsidiary Company

As the name implies, two or more companies that create an alliance jointly operate a joint venture subsidiary company. For example, several businesses work together on different projects and control the market. Furthermore, parent firms share ownership and control of their subsidiary enterprises.

Key Requirements for Indian Subsidiary Company Registration in India

  • In order to incorporate a corporation, two directors are needed at minimum.
  • At least one of the directors needs to live in India.
  • To incorporate an Indian subsidiary company in India, there is no minimum capital need.
  • An Indian subsidiary company must have two shareholders at the very least.
  • The entity, individuals, or a mix of the two may be the shareholders.
  • Of the total equity share capital, the parent business must own 50%.
  • Each Director's individual Director Identification Number.

What is the Process of Registering Indian Subsidiary Company in India?

Choosing a Name for the Indian Subsidiary Company

To establish an Indian subsidiary, an individual must meet all of the standards set forth by the Ministry of Corporate Affairs. In order to incorporate a subsidiary, businessmen must fill out SPICe+ forms issued by MCA. The proprietor of a new company must choose a name that is original and hasn't been taken by another company already in operation. When choosing a name, it is important to consider the provisions of intellectual property laws. The owner may submit a maximum of six distinct names for approval.

Acquire a Certificate of Digital Signature and Director Identification Number

The regulatory body responsible for director appointments issues DIN. Additionally, the business ought to file for a Digital Signature Certificate. The signature can be used to sign papers digitally as the company's electronic signature

Acquire a TAN and PAN number

The owner must apply for the company's PAN and TAN after submitting for DSC and DIN. It is among the prerequisites that must be in order for a company to be incorporated.

Create a Subsidiary Bank Account

The corporation must have a bank account in its name in order to handle the flow of funds in its name. The company's bank account should be used for all financial transactions.

GST Registration

The acronym for Goods and Services Tax is GST. Following the fulfillment of all aforementioned procedures, the business receives a GST number for taxes reasons. When the business engages in various operations, this GST number is relevant. It is mandatory for all companies that are registered in India to apply for a GST number.

Documents required for Indian Subsidiary Company Registration in India

  • All director's address proof can be utility bills
  • All members and director's passport sized photographs
  • PAN card of all directors
  • If someone is of foreign nationality, then their passports are required
  • ID proofs-all directors
  • All director's digital signature certificates
  • Resident Director's signature
  • DIN of all directors
  • Proof of the registered office of the company
  • If the office is rented, then a rent agreement
  • Memorandum of Association of the company
  • Articles of Association of the company
  • Incorporation Certificate of the company
  • Director's self-declarations
  • Foreign company's board resolution
  • Authorized representative's KYC

Important Compliances under Indian Subsidiary Company Registration in India

The Indian subsidiary will complete all the compliances that an Indian company is obliged to do. Here are a few notable compliances that the Indian subsidiary needs to make sure of:

  • Board Meetings: Within 30 days after incorporation, the first board meeting needs to take place. After then, the business must have a minimum of four board meetings per calendar year, with a maximum of 120 days elapsed between meetings.
  • Annual General Meetings: Nine months following the conclusion of the fiscal year, the firm ought to host its inaugural AGM. After then, the company's annual general meeting must be held within six months of the conclusion of each fiscal year.
  • Submission of Audited Financial Statements and Annual Return: The firm must send an E-Form AOC-4 to the Registrar of Companies including its financial statements and the Director's Report. In addition, it must submit its Annual Return using E-Form MGT-7.
  • Administration of Statutory Registers: In accordance with the terms of the Companies Act of 2013, the business must keep a number of statutory registers. This comprises the Member Register, Debenture Holder Register, Charge Register, Deposit Register, and so on. Penalties may be applied if the same is not maintained.
  • Adherence to the Companies Act of 2013
  • Conformity to the Income Tax Act of 1961
  • Guidelines in accordance with the Ministry of Corporate Affairs, MCA
  • FEMA Regulations
  • Tax Return on Income
  • Annual Report filed with the Company Registrar (ROC)
  • Completing a filing with the Reserve Bank of India
  • Submitting an application to SEBI, the Securities and Exchange Board of India

Taxes on Subsidiary Company in India

A tax policy specifically designed for Indian subsidiary companies has been established by the tax system in India. These Indian-established businesses are required by law to abide by the tax laws in effect at the deadline for paying taxes on time. The business must pay taxes on all income, whether it is received inside or outside of India. Included in the taxable income are dividends received from overseas subsidiaries.

How Corpbiz help you to get Indian Subsidiary Company Registration?

  • Fill The Form
  • Get A Call Back
  • Track Progress
  • Submit The Documents
  • Get Deliverables

Why contact Corpbiz?

  • Prompt Replies
  • Extensive Network
  • Skilled Team
  • Numerous Services
  • Happy Customers

Frequently Asked Questions

Yes, it is necessary to register with a subsidiary company. Registering a company is essential, to avail yourself of the benefits of a registering company. A registered company can sue others, a bank account can be opened for the registered company, the registration acts as proof of existence.

  • Wholly Owned Subsidiaries: This type of company is totally owned by the parent company itself.
  • Partly Owned Subsidiaries: In this type of company only a certain portion is owned by the parent company which is1 to 49%.
  • Joint Venture Subsidiaries: In this type of company, there are two main companies that each owns a part of a subsidiary.

Subsidiary companies enjoy a legal status as a separate legal entity. The corporation can enter into agreements with other competent bodies as an artificial legal entity thanks to this legal position. In addition, it gives the business the authority to file lawsuits and address accusations in court under its own name, independent of its directors or members.

The parent company of the subsidiary company is the one that runs the company. As the subsidiary company is the branch of the parent company, it is controlled by the parent company itself. All the major decisions relating to the subsidiary company are taken by the parent company.

A primary tax advantage of a subsidiary company is that, by leveraging state permitted deductions, it helps the parent company drastically lower its tax obligation. This benefit acts as a attractive point for a company to establish a subsidiary company.

All types of companies have to pay taxes in the country and a subsidiary company is no different. The subsidiary companies have to pay taxes in India, whereas there are some tax benefits given to subsidiaries which are registered in India.

Subsidiary companies are basically a part of the parent company itself. Subsidiary companies are opened with the view of expanding the business or outsourcing certain business activities. There are many other compliance benefits as well as tax benefits that are given to the subsidiary company.

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