{"id":24603,"date":"2021-01-21T12:42:16","date_gmt":"2021-01-21T07:12:16","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24603"},"modified":"2021-01-21T12:42:19","modified_gmt":"2021-01-21T07:12:19","slug":"procedure-for-registering-an-indian-subsidiary-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/","title":{"rendered":"Procedure for Registering an Indian Subsidiary Company"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An Indian subsidiary is also known as a subsidiary or a sister company of the parent company. The company that controls the Subsidiary Company is called parent company or sometimes a holding company. A subsidiary is always partially or wholly owned by the parent company (holding company). An Indian subsidiary is called a holding or a subsidiary of the parent company.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Meaning_of_Subsidiary_Company\" >Meaning of Subsidiary Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Advantages_of_Opening_Indian_Subsidiary_Company\" >Advantages of Opening Indian Subsidiary\nCompany<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Types_of_Subsidiary_Companies_in_India\" >Types of Subsidiary Companies in\nIndia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Procedure_to_Incorporation_an_Indian_Subsidiary_Company\" >Procedure to Incorporation an\nIndian Subsidiary Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Key_Features_of_Indian_Subsidiary_Company\" >Key Features of Indian Subsidiary\nCompany<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registering-an-indian-subsidiary-company\/#Concluding_Remarks\" >Concluding Remarks<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Subsidiary_Company\"><\/span>Meaning of Subsidiary Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The parent company must own at least 50% or more subsidiaries. When\nthe parent company is owned 100%, the parent company is known as a wholly-owned\nsubsidiary.<\/p>\n\n\n\n<p>But the main point is that the foreign parent company&#8217;s subsidiary\nis a separate legal entity from the parent company, and the subsidiary is\nobliged to act under the rules and compliance of the country where it is\nlocated or registered.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Opening_Indian_Subsidiary_Company\"><\/span>Advantages of Opening Indian Subsidiary\nCompany<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Listed below are various advantages in business compliance, to open an Indian Subsidiary.<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Independent Legal Structure<\/h3>\n\n\n\n<p>The Indian subsidiary is an independent or separate legal structure\nfrom its parent company and is regulated under Indian commercial law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Transfer of Share<\/h3>\n\n\n\n<p>After signing the share transfer certificate, shares purchased by\none shareholder can be simply transferred or exchanged to another party or\nperson.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Obtain Property in India<\/h3>\n\n\n\n<p>Since the subsidiary is an independent structure, it is permitted to\nacquire assets in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registration with Foreign Direct\nInvestment<\/h3>\n\n\n\n<p>Foreign direct investment is widely permitted for Indian subsidiaries and is applicable to most economic activities available in that country.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/types-of-company-registration-in-india\/\">An Outlook on Different Types of Company Registration in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Subsidiary_Companies_in_India\"><\/span>Types of Subsidiary Companies in\nIndia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>As detailed in the amended\nCompanies Act 2013, an Indian subsidiary is defined as a company in which a\nforeign legal entity holds at least 50% of the total share capital.<\/li><li>This definition shall state\nthat a foreign company having legal authority over the composition of the board\nof directors of a subsidiary company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_Incorporation_an_Indian_Subsidiary_Company\"><\/span>Procedure to Incorporation an\nIndian Subsidiary Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>SPICe+ shall be a unified web form. SPICe+ shall have two parts. Part A is for name reservation for new companies and part B is providing services at the time of incorporation of companies. Discussed below are the criteria for registering an <a href=\"https:\/\/corpbiz.io\/indian-subsidiary-registration\"><strong>Indian subsidiary company<\/strong><\/a> .<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">SPICe+ Form<\/h3>\n\n\n\n<ul><li>The applicant must first login to the website of the <em><strong>Ministry of Corporate Affairs<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Corporate_Affairs\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.<\/li><li>After that he has to click on Ministry of Corporate Affairs services \u201cSPICe+ web form\u201d<\/li><li>After that he requires to click on \u2018new application\u201d if he is going to incorporate &nbsp;a \u2018New company\u2019<\/li><li>Clicking on an existing application, the applicant can check the application number with the proposed name.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Part A<\/h4>\n\n\n\n<p>SPICe+ Part A will be enabled by\nclicking on the new application in MCA portal, which includes fields related to\nthe name reservation of proposed name.<\/p>\n\n\n\n<ul><li>Applicant requires filling the details of class, type of business, category, sub-category and proposed name of the company.<\/li><li>In next step the applicant has to choose auto check button (auto check do the automatic&nbsp;scrutiny of first level of the proposed name against the name rules).<ul><li><em><strong>When Part-A has been completed, Applicant can click on the<\/strong> <\/em>submit for name reservation or, he can proceed for registration or,&nbsp;cancel.<\/li><li>In case the applicant opted for proceed for registration, Part-B of the web form will be enabled which will have different process to follow.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Part B<\/h4>\n\n\n\n<ul><li>Applicant has\nrequired filling the basic details regarding the company to be incorporated.<\/li><li>In next step he has to submit the details of subscribers and\ndirectors &amp; the details regarding capital investment. <\/li><li>After that applicant requires filling the basic details for the\nissuance of PAN card &amp; TAN card (Tax Deduction Account)<\/li><li>The applicant needs to upload necessary attachments in the\nSPICe+ form.<\/li><li>Once he completes the aforementioned steps; after that the\napplicant has to confirm the declarations and click on the attached documents\nfor pre-scrutiny. <\/li><li>Once pre-scrutiny of the attached document is successfully done,\nafter that he has to click on the \u2018submit\u2019 button. <\/li><li>When the SPICe+ form is submitted successfully, Applicant will\nreceive a confirmation message.<\/li><li>After that he can download the Spice+ Part-B pdf file from the\ndashboard to affix the DSCS.<\/li><li>After successful completion of Part-B, all relevant linked forms\nbased on the applicant&#8217;s fields will be available for the applicant to fill and\nsubmit.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;AGILE-PRO Form<\/h3>\n\n\n\n<ul><li>AGILE-PRO stands for Application for Goods and Services\nIdentification Numbers, Employee State Insurance Corporation Registration plus\nEmployee Provident Fund Organization Registration.<\/li><li>The old AGILE form (INC-35) has been replaced with the AGILE\n\u2013PRO form.<em> <\/em><em><\/em><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Electronic Memorandum of\nAssociation &amp; Electronic Article of Association Web Form<\/h3>\n\n\n\n<p>eMoA is\nthe constitution of the company that needs to be filed with the Spice+ form. eAoA\ncontains all rules and regulations regarding the company&#8217;s internal affairs,\nwhich can be filed as a form linked with the SPICe + form.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">URC-1 INC-9 PDF Generation<\/h4>\n\n\n\n<p>In Part A, it is mandatory to file\nURC-1 form with all the details of&nbsp;existing company based on the details\nof subscribers and directors filled in Part B, INC-9 declaration&nbsp;web form\nwill be available in dashboard for the applicant to download and&nbsp;affix\nDSCs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;To Upload Spice+ Form <\/h3>\n\n\n\n<p>Once the DSC is affixed with SPICe+, Part B PDF and all other linked forms, the applicant requires clicking on the option to upload web form. Once all the forms will be uploaded successfully, a Unique Service Request Number (SRN) will be generated and displayed to the applicant.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">\u00a0Particulars Required<\/h4>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Particulars-Required.png\" alt=\" Particulars Required\" class=\"wp-image-24637\" width=\"551\" height=\"347\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Particulars-Required.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Particulars-Required-300x189.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Particulars-Required-768x483.png 768w\" sizes=\"(max-width: 551px) 100vw, 551px\" \/><\/figure><\/div>\n\n\n\n<p><em><strong>All below mentioned particulars shall be attached with the web form.<\/strong><\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">For SPICe+ Web Form<\/h4>\n\n\n\n<ul><li>Electronic Memorandum of Association<\/li><li>Electronic Article of Association.<\/li><li>Declaration signed by directors and subscribers <\/li><li>Address Proof of premises.<\/li><li>Utility Bills (water bill, electricity bill)<\/li><li>Registration certificate of foreign body corporate (if any).<\/li><li>Consent of nominee (INC-3).<\/li><li>Residential address proof of the subscribers.<\/li><li>Residential address proof of the nominee.<\/li><li>Proof of address of applicant I, II, III.<\/li><li>Declaration in Form no. INC-14 &amp; 15<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">For AGILE \u2013PRO Web Form<\/h4>\n\n\n\n<ul><li>Proof of address of principle place of business. <\/li><li>Appointment letter of Authorized Signatory for GSTIN <\/li><li>Authorization&nbsp; Letter<\/li><li>ID Proof of Authorized Signatory <\/li><li>Signature of Authorized Signatory for EPFO.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Features_of_Indian_Subsidiary_Company\"><\/span>Key Features of Indian Subsidiary\nCompany<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Indian subsidiary company&nbsp; will be permitted to have its own unique\nname, therefore, it needs not to bear the parent company\u2019s trading name,<\/li><li>Indian subsidiary will apply\nfor its own business licenses and will have its own statutory documents,<\/li><li>From a taxation point of view,\nit will be imposed the corporate tax on its worldwide profits,<\/li><li>Indian subsidiary can engage in\nany type of activity, as long as the requirements imposed for the respective\nsector are respected.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remarks\"><\/span>Concluding Remarks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Indian subsidiary company is determined as the other type of\nIndian company, and the rules set for the Indian company are the same as for\nthe Indian subsidiary company. <\/p>\n\n\n\n<p>If the above mentioned particulars are available and the correct procedure is followed, there will be no unnecessary delay and the company can be incorporated as soon as possible. Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert to know more about the procedure related to register an Indian subsidiary company.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/overview-indian-subsidiary-company-registration-online-in-india\/\">Indian Subsidiary Company Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An Indian subsidiary is also known as a subsidiary or a sister company of the parent company. The company that controls the Subsidiary Company is called parent company or sometimes a holding company. A subsidiary is always partially or wholly owned by the parent company (holding company). An Indian subsidiary is called a holding or [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,1035],"tags":[1451],"acf":{"service_id":"7"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":4156,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24603"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24603"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24603\/revisions"}],"predecessor-version":[{"id":24640,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24603\/revisions\/24640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24620"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}