Incorporation of Indian Subsidiary

Register your Indian Subsidiary Company starting at Just ₹ 35,000/- 

 

Ideal for foreign entities

 

For starting business in India

 

Simple & Secure Online Process

 

Dedicated Professional

 

Get your RBI compliances

 

Get Post Incorporation Assistance

 
 

Introduction of Set-up of Indian Subsidiary

There are many foreign companies who wish to start their operations in India and grab the fastest growing market. The Companies Act 2013, provides a channel where the foreign companies can open companies in India, subject to FDI Policy by investing in the equity. These companies are called Indian Subsidiary Company.

An Indian subsidiary Company is the Company which can be incorporated under Companies Act, 2013 which is controlled (more than 50%) or managed by another Company i.e. its Parent Company incorporated outside the Country.

The Paid Up Share Capital of such Company can be either fully owned or owned in part by the Parent Company. The Company whose Paid Up share Capital is fully owned (100%) by the Parent Company is known as Wholly Owned Subsidiary and a Company whose Paid Up share Capital is partly owned is referred to as Subsidiary Company .

FDI in private limited companies is allowed subject to FDI Policy of India. The categorization has been done under two categories automatic route and approval route. Before incorporating the company first of all we need to check the sector in which investment has to be made and follow the compliances as applicable under FDI.

Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on 072407-51000 or email admin@legalwindow.in for Setting up of an Indian Subsidiary/ Foreign Company and Compliance services.

Advantages of Set-up of Indian Subsidiary

Limited Liability 

The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it and it is a legal entity which means it is different from its Members and Directors.

No minimum Capital Required

For incorporating a Foreign Company no minimum capital is required and the capital structure may be altered in accordance with the growth requirements of the Company at later stage.

Separate Legal Entity

Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc. The dissolution of the Parent Company does not affect the life of its Subsidiary. 

Increase in security

Employees prefer to join the Private Limited Company and vendors  feel secure in offering credit, the trust and confidence of customers increases which ultimately result in the rise of investment from the investor.

Easy availability of funds

The expansion scope is higher due to easily availability of funds from a venture capitalist, financial institutions, angel investors offering more transparency.

Increase in FDI

Attraction of Foreign Direct Investment in India in accordance with the guidelines issued from the government with or without the approval and considering the sectoral cap.

Minimum Requirements

Minimum two Directors and maximum fifteen

Minimum two shareholders

At least One Director shall be Indian resident

Digital Signatures of Subscribers and Directors

Parent Company must have a shareholding of more than 50%.

Director Identification Number if available

Documents Required for Incorporation

PAN Card of the Member and Directors of the proposed Company
Passport in case of Foreign Nationals

Latest passport size photograph of Member and Directors;

Identity Proof of the director and nominee (Aadhar / Voter ID / Driving License / Passport)

Address Proof the director and nominee (Utility Bill / Telephone Bill / Mobile Bill / Bank Statement not older than two months)

Business Address Proof
Owned Property
: (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof
Rented/leased:
(Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Board Resolution from the parent Company for incorporation of the subsidiary in India

Incorporation documents of the Parent Company and KYC of authorized representative;

Note:-In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostilled  and the documents must have been translated in English language other than the respective language of the said Country.

Documents Required for Filing FCGPR

PAN Card of the persons to be appointed as Authorized person on behalf of the entity

Board Resolution by the entity to authorize any person

Foreign Inward Remittance Certificate (FIRC)

KYC of the person resident outside India

Copy of FIPB approval (if so required);

Copy of Board Resolution for issue of securities;

Process of Incorporation of  Indian Subsidiary

1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.


2. Document Processing
At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.

3. Application for DSC
First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.

4. Name Availability
The next step is to check the name availability. Now you need to let us know 3 names which should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.

5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from above the same is to be filed with ROC. The MOA as well as AOA shall be drafted with the cautious care thereby keeping in mind the main objective of Indian Subsidiary Company. This process again take 2-3 days.

6. Get Certificate of Incorporation
After the approval a Certificate of Incorporation will be provided through e-mail which signifies that the Company has been incorporated.



7. Filing of FCGPR
The last step is to file FCGPR within 30 days of receipt of subscription money in the current account of the company.


More Insight on Incorporation of Indian Subsidiary

How to Select the Name of Company

  • You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
  • Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Legal Window by clicking on the below mentioned link Trademark Registration

Other Key Points

  • If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Legal Window.

  • The private limited company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Legal Window has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.

Get your Indian Subsidiary Registered – ₹ 35,000/-

2 Digital Signature Certificates

Stamp duty on INR 1 Lakh Authorized Capital (Rajasthan)

MOA & AOA

PAN/TAN

ESI and PF Registration

2 Director Identification Numbers

INC 20A Commencement of Business Certificate 

Company Incorporation using SPICe

GST Registration

Bank Account Open

1 Name Approval Application

RBI Compliances –Filing of FCGPR

FAQs on Foreign Company

Can 100% Subsidiary Company be formed by the Parent Company in India?

Yes, it can be formed under Companies Act, 2013 in which the Parent Company can form a 100% WOS (Wholly Owned Subsidiary)and can hold shares in the name of Authorized Representative along with a nominee.

Can I provide the residential place for registered office of the company?

Yes, You can register a Company at a commercial or residential place by providing the documents as specified. There is no restriction by the department.

Is it mandatory to have an Auditor and if yes in what time period it is required to be appointed?

As per Companies Act, 2013 it is compulsory to have an individual or firm as an Auditor of a Company. The first Auditor shall be appointed within 30 days from the date of Incorporation by the Board of Directors .

What are the documents required to be given for compliance with RBI regarding filling of FCGPR?

In order to file the respective form , the client is required to provide FIRC from AD and KYC from the bank in order to proceed further.

Is it compulsory to have the documents apostille in case of incorporation of foreign company?

Documents are required to be apositlle in case the foreign nation is not present in India. In case he is present in India on business visa then it is not required.

What is due date/last date of filing foreign Liabilities and assets(FLA) with RBI?

The companies must file the return before July 15 of the next financial year. In case of unaudited accounts the return should be revised by the end of September by filing the audited accounts. 

What are the compliances to be done by the Company after receipt of Foreign Investment in lieu of shares?

A Company is required to file within 30 days of its allotment Form FCGPR along with the requisite documents with the RBI on FIRMS portal www.rbi.org.in.

What is Company Registration Certificate?

It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number.

What are the post incorporation compliances that are required to be complied by the company?

The company is required to open a bank account and deposit the subscription money as agreed between the shareholders and file the form for commencement of business.

Is it necessary to have Indian Director in the company and do we need to allot any shares to Indian Director?

Yes, it is mandatory to have one Indian Director in the company and there is no compulsion that such director should also be a shareholder. But minimum 2 shareholders are required in a private limited company, so compliance related to same shall be complied with.

What are the post compliance after company incorporation? 

The company is required to open a bank account and deposit the subscription money as agreed between the shareholders and file the form for commencement of business.

Can I provide the residential place for registered office of the company?

You can register Indian Subsidiary Company at a commercial or residential place by providing the documents as specified. There is no restriction by the department.