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What is an Indian Subsidiary ?
Starting an Indian Subsidiary is the most accessible and easy mode for setting up business in India by foreign companies. The Government of India allows 100% FDI in most of the industries when set-up as a company. This also becomes a reason for foreign nationals and entities to end up their search on private company structure to establish their business. An Indian structure is also beneficial as it is a centralized structure in place and governed by Companies Act, 2013. Withholding the majority or whole portion of stocks, all you need is one resident director and a place of business in India. However, it is simplified to set-up and run business, these companies must assess pertinent provisions of law. The Indian subsidiary of a foreign entity is also popularly known as a foreign company in India.
Benefits of foreign company registration in India
Easy entry gate
When compared to other business structure, the entry to Indian business sphere is easy as a private company. Apart from liberal norms, the set-up is a hassle-free deal as a company. Incorporation process and post-registration steps are now simplified with online processes and one window processing.
Permanent establishment in India
By registering a subsidiary in India, the foreign nationals or entities establish a permanent place of business and a legal entity in India. A company registered in India has separate legal identity than the promoters and the stockholders.
Strategic control over operations
Although being a foreign person, this structure helps the promoters to control over the operations and activities in a strategic manner. With at least one Indian resident director, the foreign entities benefit from the indirect control and supervision.
Expansion with limited liability
The ultimate goal of setting a foreign branch happens to be an expansion of the business. A limited liability is an added advantage when it comes to entering in the whole new market. Where you increase the brand value across the globe, you also secure your liability with this structure.
Formulation of Company Name
Unique Name
Mainly it builds the company brand and preferably be a coined word
Business Object
Second part of name should suggest the business activity of the company
Constitution Type
Name of the company must end with “Private Limited” as suffix
ONLINE REGISTRATION
Documents required to register an Indian Subsidiary
PAN Card
PAN Card of shareholders and Directors.Foreign nationals must provide a valid passport.
Identity Proof
Voter ID/ Passport/ Driving License of Shareholders and Directors
Address Proof
Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address in India
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Constitutional documents
An apostilled copy of the charter, statutes or memorandum and articles. If the instrument is not in English, a certified translation in English
List of Directors & Secretaries
It is to be provided on the letterhead of the company (apostilled or notarized)
Place of Business
Full address of the principal place of business of the foreign entity
Authorised Representative
Name and address of the person (Authorized Representative) who shall receive legal documents on behalf of the company
Prior registrations
Details of opening and closing of a place of business in India on earlier occasion
ONLINE REGISTRATION
Register a company in 3 easy steps
1. Answer Quick Questions
2. Experts are Here to Help
3. Your Company is Registered
THE PROCESS
Foreign company registration process
Day 1
Day 2 - 4
Day 5 - 7
Day 9 - 10
Day 11 - 12
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