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Indian Subsidiary Company Registration

Companies Act 2013 controls the Indian Subsidiary Company Registration process. As per Companies Act 2013, a subsidiary company can be defined as a company in which a foreign corporate body or parent body has minimum 50% of the entire share capital. Parent company has a grip over a subsidiary company.

  • Company Formation Government Fees
  • Legal Support for Investment Approvals
  • Registered Office Service
  • MOA,AOA, Tax ID
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Overview of Indian Subsidiary Company Registration

Many foreign investors are willing to start their business in India as our nation provides tonnes of opportunities because of its fast-growing market. Any foreign national apart from the citizen of Pakistan and Bangladesh or an entity formed and operating outside India can invest in the Indian market and holds the power to make their own subsidiary company in India by obtaining shares pertaining to the matters of FDI policy of India. Before getting into the process of Indian Subsidiary Company Registration make sure that as a business entity you have at least one Indian Director who must be residing in India and one Foreign Director which is must for forming Indian Subsidiary Company.

A subsidiary company is also called sister company and the company which has control over it is called parent company or holding company. Parent company holds the right to control the subsidiary company either partially or completely.

Companies Act 2013 controls the Indian Subsidiary Company Registration process. As per Companies Act 2013, a subsidiary company can be defined as a company in which a foreign corporate body or parent body has minimum 50% of the entire share capital. Parent company has a grip over a subsidiary company. It is necessary for a subsidiary company to abide by the laws of the nation in which they are planning to establish or are already established. Hence, if a subsidiary company is established in India then it is crucial for the company to follow the law in force in India.

An important thing to keep in mind is that a subsidiary company of a foreign parent company is regarded as a separate legal entity and subsidiary company is obliged to work as per the norms of the country where it is situated. Business personnel can register an Indian subsidiary company as a private limited company or a public limited company.

  • A private limited organization isn't available to the general population and appreciates the benefits over Public Company given by the Companies Act, 2013.
  • A public limited company is where the public holds an enthusiasm for it and it is required to conform to various principles and guidelines as indicated by the Companies Act, 2013.

Indian Subsidiary Company Registration

Benefits of Indian Subsidiary Company Registration

Benefits of Indian Subsidiary Company Registration
  • Brings Foreign Direct Investment

    Indian government has approved 100% involvement of FDI in case of fast growing business industries; that is to say, FDI is permitted 100% without any foregoing approval. Although if you are a Partnership firm or LLP or Proprietorship then you may need a beforehand approval from government for FDI.

  • Limited Liability

    Directors and members of the company have limited liability. They are stringently limited to their company’s share. Limited liability trait protects the Director or member of the company in the time of any loss or financial distress bore by the company. Personal assets of Directors and members will not be at risk due to the loss suffered by the company.

  • Perpetual Succession

    Perpetual succession means no matter what happens to the members or directors of the company, the company will continue to exist. Insolvency, change in members, death, transfer etc will not have any effect on the existence of the company.

  • Scope of Expansion

    An Indian Subsidiary Company enjoys all the privileges of a Private Limited Company. The growth and expansion of business is easy because it raises capital from financial institutions, venture capitalist, and the investor.

  • Borrow Funds

    A fully-owned subsidiary company in India has the benefit of borrowing funds from financial institutions in the form of loans.

  • Sue and Sued

    Indian subsidiary company acts like a legal person; it can sue and can be sued.

  • Obtain Property In India

    Foreign subsidiary company works on an independent structure which gives them the authority to buy properties in India.

Documents Required for Indian Subsidiary Company Registration

Indian National

  • PAN Card information
  • Address Proof
  • Identity Proof such as Aadhaar Card, Driving License, Voter Id

Foreign National

  • Passport
  • Address Proof (Indian Consulate must certify the document)
  • Identity Proof (Indian Consulate must certify the document)

Other Crucial Documents

  • Directors Identification Number (DIN)
  • Digital Signature Certificate (DSC)
  • Memorandum of Association (MOA) and Article of Association (AOA)
  • No Objection Certificate from the person who owns the property of business place
  • Certificate of Incorporation granted by the foreign government
  • Residential Proof

Characteristics of Indian Subsidiary Companies

  • Beforehand approval is not required for the repatriation dividend
  • Indian subsidiary companies follow Indian transfer pricing framework
  • Union budget 2020 says that dividend distribution tax is nil

Indian Subsidiary Company Registration Procedure

MCA has introduced a new form to simplify the process of registration. The form is called SPICe+ form and it consists of 2 parts:

PART A

Name Reservation process

PART B

Once Name reservation process is done, it includes all the incorporation application and these are:

Required for Indian Subsidiary Company Registration

1. DIN Application

2. Issue of PAN and TAN

3. Bank Account for the company

4. GSTIN Allotment

Indian Subsidiary Company registration process is incomplete without obtaining Digital Signature Certificate from the Certifying authority. DSC is a prerequisite need.

  • Capital

    No minimum capital is required.

  • Directors

    Subsidiary company cannot be formed without having minimum two directors and one has to be the resident of India.

  • Shareholders

    Minimum two shareholders are necessary to form Indian Subsidiary Company.

  • Equity Shares

    50% of the equity share capital should owned by the parent company.

  • DIN

    Director Identification Number of all Directors is necessary.

Annual Compliances of Indian Subsidiary Company

Annual Compliances of Indian Subsidiary Company
  • Compliance with Companies Act,2013
  • Compliance with Income Tax Act, 1961
  • Guidelines with MCA, Ministry of Corporate Affairs
  • FEMA Guidelines
  • Annual Return with the Registrar of Company (ROC)
  • Income Tax Return
  • Filing with the RBI, Reserve Bank of India
  • Filing with the SEBI, Securities and Exchange Board of India

Indian Subsidiary Company is no different from any other Indian Company and the norms pertaining to the Indian Company are the same for the Indian Subsidiary Company. If the applicant company successfully follow the above mentioned procedure along with the required documents then it will receive the COI on time.

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Frequently Asked Questions

Indian Subsidiary Company requires to get enrollment with fair treatment followed by presenting all the archives. A similar procedure is followed as of the Private Limited Company in India.

Yes as the Indian Company requires at least 2 investors and thusly can be 100% subsidiary of the Parent Company.

Indian Subsidiary Company Registration is a 100% online procedure. No should be available truly at our office or service of corporate issues. We will send our individual to your home or office for record signature.

Indian National

  • PAN Card information
  • Address Proof
  • Identity Proof such as Aadhaar Card, Driving License, Voter Id

Foreign National

  • Passport
  • Address Proof (Indian Consulate must certify the document)
  • Identity Proof (Indian Consulate must certify the document)

Other Crucial Documents

  • Directors Identification Number (DIN)
  • Digital Signature Certificate (DSC)
  • Memorandum of Association (MOA) and Article of Association (AOA)
  • No Objection Certificate from the person who owns the property of business place
  • Certificate of Incorporation granted by the foreign government
  • Residential Proof

The Indian auxiliaries of outside organizations can participate in any exercises subject to the arrangements and rules referenced under the FEMA and RBI.

In One Person Company a solitary individual is the investor and a similar will the chief, who can be an Indian occupant as per Companies Act, though in Indian Subsidiary Company one remote executive, is required. Thusly, Indian Subsidiary Company can't be a One Person Company.

There must be prerequisite of least two investors and two executives, DIN for all chiefs yet no base settled up capital. The Parent Company must hold half of all out value share capital.

The DSC is a Digital Signature Certificate which is given by the guaranteeing power to sign the electronic records. Commotion is a Director Identification Number. Each proposed executive in an organization must have a legitimate DIN.

The procedure to fuse an Indian Subsidiary requires getting DIN and DSC, and furthermore, there is a necessity of name endorsement. From there on, the MOA is drafted and documented inside 60 days to finish the joining procedure for an Indian Subsidiary.

One can begin an Indian Subsidiary Company with any measure of capital. Anyway the charges must be paid to the Government for giving the base portions of Rs. 1 Lakhs during the joining of the organization.

FDI Guidelines for an Indian Subsidiary is to check as far as possible, must have one inhabitant chief, additionally have business visa and in conclusion all reports those are executed in a remote domain should be legitimized by method for confirmation.

To make a subsidiary, the parent organization must hold a gathering of the top managerial staff and with the board, where vote is given for the choice to frame an subsidiary. Last goals ought to be marked by the director of the organization.

  • Compliance with Companies Act,2013
  • Compliance with Income Tax Act, 1961
  • Guidelines with MCA, Ministry of Corporate Affairs
  • FEMA Guidelines
  • Annual Return with the Registrar of Company (ROC)
  • Income Tax Return
  • Filing with the RBI, Reserve Bank of India
  • Filing with the SEBI, Securities and Exchange Board of India

No, as a subsidiary organization has 50 % of its stock constrained by a parent organization with the end goal of obligation, charge, and administrative reasons. In any case, the subsidiary and parent organizations stay separate legitimate substances.

A registration certificate gave by the enlistment center of organization will be substantial for the duration of the life of the organization.

  • Capital

    No minimum capital is required.

  • Directors

    Subsidiary company cannot be formed without having minimum two directors and one has to be the resident of India.

  • Shareholders

    Minimum two shareholders are necessary to form Indian Subsidiary Company.

  • Equity Shares

    50% of the equity share capital should owned by the parent company.

  • DIN

    Director Identification Number of all Directors is necessary.

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