Indian Subsidiary Registration (Easily Start Business in India)

Indian Subsidiary Registration

Indian Subsidiary Registration is ideal for foreign nationals starting their businesses in India.

For a foreign incorporated company to start operations in India and tap into the Indian market, opening an Indian subsidiary is the best option. As per section 2(42) of the Companies Act, 2013, “A foreign company is a company or body corporate incorporated outside India which has a place of business in India whether by itself or through an agent, physically or through electronic mode; and conducts any business activity in India in any other manner”. Any foreign national or any overseas incorporated entity (other than nationals or entities of Pakistan or Bangladesh) can invest in an Indian company and own it by acquiring its shares subject to the FDI stipulations of the Government. It is mandatory that the Indian subsidiary of a foreign company must have one director who is an Indian national resident in India.

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Panomics Legal Mentors will help you to register an Indian subsidiary from the comfort of your home, offering you services that are very technical and as per individual needs.

Get a free consultation for Indian subsidiary registration with Our Top Rated Experts with simple Registration.

Advantages of Indian Subsidiary

  • Separate Legal Entity – An Indian Subsidiary is an entity with a distinct identity from its shareholders and a separate juristic person as per Companies Act 2013. This provides the company with many rights such as opening a bank account under its name, obtain licenses, hire employees, and enter into contracts and so on.
  • Perpetual Existence — An Indian Subsidiary continues to exist till it is legally dissolved by its directors. Death or departure of its directors for any reason has no effect on the company’s existence and the company continues to exist even when there is a change in ownership.
  • Easy share allocation and redirection – The ownership of an Indian Subsidiary can be easily transferred by the method of transferring shares. The process is as simple as signing and filing a share transfer form along with individual share certificates subject to the approval of other shareholders.
  • Property Ownership — Since an Indian Subsidiary is a juristic person; it can own and sell property under its name. As long as the company is a running concern, the property owned under the company name cannot be claimed by any of the directors.
  • Capacity to Borrow – Financial institutions such as banks prefer to give loans to a Company in comparison to LLPs or other proprietary concerns. There are many options available with an Indian Subsidiary to raise funds. A company can accept public deposits, raise debentures both secured and unsecured, and can also issue equity shares
  • FDI (Foreign Direct Investment) – Across many sectors, 100% FDI is allowed by the Government of India on an automatic rout i.e. without approval from Government. Such a facility is not available with either a Partnership or a Proprietorship and in the case of an LLP, prior approval from Government is required.

Documents required for registration for an Indian subsidiary of a foreign company

Mandatory

  • Notarized and/or apostilled copy of Foreign company charter
  • Notarized and/or apostilled copy of board resolution of a foreign company
  • Notarized and/or apostilled copy of authorized representative ID, in case such person is an NRI
  • Name of one resident director
  • In case of WOS (Wholly Owned Subsidiary), the name of a nominee

For Directors/Shareholders

Mandatory

  • Copy of PAN card for Indian Nationals;
  • Notarized and/or apostilled passport copy for Foreign Nationals

Identity Proof:

  • Passport; or
  • Aadhar card; or
  • Voter ID; or
  • Driving license

 Passport size photographs

Address Proof:

  • Copy of Telephone/Mobile or Electricity bill; or
  • Bank Account Statement (Less than 2 months old)

Company Address Proof:

  • Telephone/Mobile/Electricity/Gas bill (Less than 2 months old); AND
  • In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business;
  • In the case of self-owned premises registered title document

Minimum Requirement

  • A minimum of 2 directors
  • A minimum of 2 shareholders
  • A minimum of 1 director to be Indian Resident
  • Shareholder and director can be the same person
  • DSC (Digital Signature Certificate) for 1 witness and 2 promoters
  • DIN (Director Identification Number) for ALL company directors

Registration Process

Panomics Legal Mentors will help you to register an Indian subsidiary from the comfort of your home, offering you services that are very technical and as per individual needs.

Get a free consultation for Indian subsidiary registration with Our Top Rated Experts with simple Registration.