Indian Subsidiary
Simplifying the process of company incorporation for your business.
What is a Indian Subsidiary?
An Indian subsidiary is a company incorporated in India, where a foreign company (parent company) holds a majority of its shares (more than 50%). The parent company has significant control over the subsidiary but both are separate legal entities.
- Majority Ownership: The foreign parent company owns more than 50% of the shares in the Indian subsidiary.
- Separate Legal Entity: It operates independently, with its own management, rights, and responsibilities.
- Compliance: It must comply with Indian laws, including the Companies Act, 2013, and other relevant regulations.
- Limited Liability: The parent company’s liability is limited to its shareholding in the subsidiary.
Why Choose Indian Subsidiary?
- Market Access: Direct entry into India’s large consumer market.
- Limited Liability: Parent company’s liability is limited to its shareholding.
- Control: Parent company maintains significant control.
- Compliance: Ensures adherence to Indian laws and regulations.
- Tax Benefits: Access to tax incentives and exemptions.
- Brand Presence: Enhances brand credibility in India.
- Local Hiring: Enables hiring of local talent for better market insights.
Documents Required for Indian Subsidiary?
- Partners’ Documents:
- ID Proof and Address Proof of directors.
- Photographs of directors.
- Registered Office Proof:
- Address Proof (utility bills, lease agreement).
- Property Ownership/Rental Agreement.
- Additional Requirements:
- MOA and AOA.
- Board Resolution for incorporation.
- PAN Card for the subsidiary.
- Shareholding Proof (parent’s majority ownership).
- NOC from the parent company’s bank (if applicable).
Mandatory Criteria for Indian Subsidiary Registration.
To register a Indian Subsidiary in India, the following requirements must be met:
- Majority Ownership: The foreign parent company must hold more than 50% of the shares.
- Legal Structure: The subsidiary must be registered as a private limited company under the Companies Act, 2013.
- Directors: At least two directors are required, and at least one should be an Indian resident.
- Registered Office: The subsidiary must have a registered office in India.
- Compliance: The subsidiary must adhere to Indian laws, including Foreign Direct Investment (FDI) guidelines.
- Capital Requirement: The subsidiary must meet the minimum capital requirements as per regulatory guidelines.
Steps to Register
Obtain DSC & DIN
Directors must get Digital Signature Certificates and Director Identification Numbers.
Choose a Name
Select and reserve a unique name through the MCA portal.
Draft MOA & AOA
Prepare the Memorandum and Articles of Association.
File Incorporation
Submit the INC-32 (SPICe) form with required documents to the MCA.
Obtain Certificate of Incorporation
Receive the official registration certificate from the RoC.
Apply for PAN & GST
Obtain PAN and, if applicable, GST registration.