Register an Indian Subsidiary
Like additional limbs to the main body, subsidiaries let the holding firm connect with various markets, industries, and nations. From a legal standpoint, an Indian subsidiary is considered an Indian corporation and must adhere to all applicable compliances for Indian enterprises.October 12, 2021
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INTRODUCTION
What is an Indian Subsidiary?
The most convenient and approachable way for international corporations to establish a business in India is through the creation of an Indian subsidiary. In the majority of industries, the Indian government permits 100% FDI when a business is established. This serves as another justification for foreign nationals and organizations to give up looking for a private company structure before starting a firm.
Because an Indian structure is centralized and regulated by the Companies Act of 2013, it is also advantageous. To withhold the majority or entire share of stocks, all you need is a location of business in India and one resident director. Though it is easier to start and maintain a firm, these organizations nevertheless need to consider relevant legal requirements. In India, a foreign company is another term for a foreign entity’s Indian subsidiary.
ADVANTAGES
Advantages of registering a foreign business in India
simple gate of entrance
As a private corporation, it is relatively straightforward to enter the Indian commercial environment in comparison to other business structures. Aside from lax standards, the setup is trouble-free for the business. With online procedures and one-window processing, the incorporation process and post-registration procedures have been made simpler.
enduring presence in India
The foreign nationals or corporations create a permanent place of business and a legal entity in India by forming a subsidiary there. A business that is registered in India is a different legal entity from its investors and promoters.
strategic command of the activities
Despite being a foreign entity, this structure aids in the promoters' strategic control over the operations and activities. The foreign entities profit from the indirect control and oversight when there is at least one resident Indian director.
Growth with restricted liability
The expansion of the company is the ultimate purpose of opening an overseas branch. One further benefit of breaking into a new market is having little responsibility. With this framework, you not only protect your liabilities but also raise the value of your brand globally.
A LIST OF DOCUMENTS
Documents needed to form a subsidiary in India
Photograph
Current passport-size photos of directors, nominees, and shareholders
PAN Card
PAN card of directors, nominee, and shareholder.
Identity Proof
Directors' and shareholders' driver's license, passport, or voter ID
Address Proof
A copy of the directors' and shareholders' most recent bank account statement, telephone bill, or electricity bill
Business Address Proof
The telephone and electricity bills for the Indian registered office location
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
If there is one, the registered office's rent agreement should be submitted.
Constitutional documents
A copy of the articles, legislation, or memoranda, endorsed by the authorities.
A verified English translation should be provided if the original is not in English.
List of Directors & Secretaries
It must be sent on business letterhead that has been notarized or apostilled.
Place of Business
Complete address of the foreign entity's primary place of business
Authorised Representative
The name and address of the Authorized Representative, who will accept legal papers on the company's behalf,
Prior registrations
Information on the previous establishment and shutting of a company location in India
How do you pick a name?
Although a proprietorship can be identified by its individual name, a company name is preferred since it aids in the development of Name Brand
Special Name
Essentially, it establishes the company's brand and, ideally, is a newly invented term.
Business Item
The company's business activity should be implied by the second portion of the name.
Type of Constitution
The suffix "Private Limited" must be included at the end of the company's name.
ACTIVE REGISTRATION ONLINE
Create a corporation in three simple steps.
1. Respond to Quick Questions
- Completing our questionnaires takes less than ten minutes.
- Give the necessary documentation and basic information for registration.
- Use safe payment gateways to process payments.
2. Relax While Our Team of Experts Completes Everything
- Dedicated Relationship Manager
- Acquisition of Electronic Signatures (DSC)
- Name Reservation Application
- writing of documents, such as the AOA and MOA
- The incorporation certificate
3. Your Business Is Listed
- It just takes twelve to fifteen working days.
THE ACTION
Foreign company registration process
Days 1
- Application for Certificate of Digital Signature
Days 2 - 4
- Verifying the availability of the name
- Application for Name Reservation under “RUN“
- Reservation of Name
Days 5 -7
- Drafting of MoA, AoA, and other necessary papers
- Payment of Stamp Duty
- Notarization of needed documents.
Days 9 - 10
- Filing an application for business registration.
- Application for DIN Allocation
- Application for PAN and TAN of the firm
Days 11 - 12
- Government processing time
- Certificate Of Incorporation
Common Queries
India allows 100% Foreign Direct Investment in various industries covered by the Automatic Route. Only a post-investment filing with the RBI specifying the type of investment made is required under the Automatic Route. A few industries need RBI permission in advance; in these situations, RBI approval is required before any investment can be made.
Any kind of foreign investment is forbidden in companies that operate or plan to operate in the following industries: i) chit fund activities; ii) Nidhi Company enterprises; or
iii) Agricultural or plantation activities (apart from tea plantations, services connected to the agro & allied industry, floriculture, horticulture, seed research, animal husbandry, pisciculture, production of vegetables, mushrooms, etc., under regulated circumstances); or
iv) Real estate business, or building farm dwellings (excluding township development, building residential or commercial buildings, building roads, or building bridges); or
v) Transferable Development Rights (TDRs) trading
- This foreign entity’s operating arm is registered in India as a private company, requiring the subscription of shares from at least two members. As a result, the parent firm would subscribe for all but one share in order to register as a totally owned subsidiary. One of the directors has given this one share to meet the criteria.
As part of the government’s drive to streamline business registration, the minimum authorized capital of INR 1 Lakh is required in order to register as a foreign company (private company). However, the minimum paid-up capital requirement is removed. To register, a shareholder must, however, subscribe for a minimum of one share and provide funds adequate to operate the firm.
A company’s name should be created according to the guidelines outlined in the previous section. Under the RUN form, candidates may list up to two names in order of choice. The names submitted must abide by the Act’s requirements or its rules.
To establish a relationship, you can apply using the name of the foreign entity; but, you must first confirm that the name is available.
- Yes, at least one director has to be a resident and citizen of India for any company to be registered there. This requirement must to be met at all times while the business is in operation.
