Foreign investors are willing to start their business in India as the nation is providing tonnes of opportunities because of the fast-growing market. Any foreign national except the citizens of Pakistan and Bangladesh or an entity that is formed and is operating outside India can invest in the Indian market. Indian Subsidiary is any company that is owned by a foreign company, the Companies Act, 2013 governs the registration process of the Indian Subsidiary.
The Economic liberalization of 1991 was a catalyst for the foreign direct investment in India. A subsidiary company is also called the sister company and the company which has a hold over the sister company is called the parent or holding company. The parent company holds control over the subsidiary company completely or partially.
The registration of the Indian subsidiary company is completely controlled by the Companies Act, 2013. As per the Companies Act 2013, a subsidiary company is a foreign corporation or a parent body that has a minimum of 50% of the entire share capital. The subsidiary must adhere to the laws of the nation in which they are planning to establish the entity. IndiaFilings can help with Indian Subsidiary registration while providing nominee directors and registered office service in India.
Application for Digital Signature Certificate
1. Checking Name availability
2. Application for Name Reservation under “RUN“
3. Reservation of Name
1. Drafting of MOA, AOA & other required documents
2. Payment of Stamp Duty
3. Notarization of required documents
1. Filing application for company registration
2. Application for DIN Allotment
3. Application for PAN and TAN of company
1. Government processing time
2. Certificate of Incorporation
Limited Liability :
The liability of the Directors and the members of the Indian Subsidiary Company is just like the Private Limited Company is limited to their shares. This means if the company is suffering from any loss and is facing any financial distress then because of any business activity, then the personal assets of the shareholders or the members of the directors will not be at risk.
Foreign direct investment :
100% Foreign Direct Investment is allowed in several business activities and industries through automated route without any prior approval. But FDI is not allowed in proprietorships or partnerships. FDI in a Limited Liability Partnership also requires government approval.
Here the scope of expansion is higher as it is easy to raise the capital from a venture capitalist, the financial institution, angel investors, and the advantages of limited liability.
Brand value :
The brand value of the company is increased as the employees will feel secure in joining the Private Limited Company, the vendors will feel secure in offering credit and the investors will be relieved while investing. The new-age startups can become a multibillion company in years due to the high brand value of the company.
Latest Passport size photograph of Shareholders and Directors
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)