REGISTER AN INDIAN SUBSIDIARY

Register an Indian Subsidiary

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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.

THE PROCESS

Foreign company registration process

Day 1:

Application for Digital Signature Certificate

Day 2 - 4:

1. Checking Name availability
2. Application for Name Reservation under “RUN“
3. Reservation of Name

Day 5 - 7:

1. Drafting of MOA, AOA & other required documents
2. Payment of Stamp Duty
3. Notarization of required documents

Day 9 - 10:

1. Filing application for company registration
2. Application for DIN Allotment
3. Application for PAN and TAN of company

Day 11 - 12:

1. Government processing time
2. Certificate of Incorporation

Benefits of foreign company registration in India

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.

Expansion :
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.

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Required Documents

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Photograph: 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)

Learn more according to needs

Frequently Asked Questions

No, a Foreign Nationals can also become a member of the Board of Directors of a company registered in India. There is only one condition that at least one director must be an Indian citizen and an Indian resident both.
Also, there are several types of directorships available that a Foreign national can take in an Indian company such as Women Director, Independent Director, Small Shareholders Director, Additional Director, Alternative and Nominee Director.

Foreign National Director has 100% rights over the allotment of shares. If you as a foreign director don’t wish to allot any shares to the Indian resident directors then there can be no legal action taken against you. It is not at all mandatory that the director should also be a shareholder in an Indian Company

-Latest Passport size photograph of Shareholders and Directors
-PAN Card of shareholders and Directors.
-Foreign nationals must provide a valid passport.
-Voter ID/ Passport/ Driving Licence of Shareholders and Directors.
-Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors for address proof.
-Electricity Bill/ Telephone Bill of the registered office address in India.
-No Objection Certificate (NOC) to be obtained from the owner(s) of the registered office.
-The rent Agreement of the registered office should be provided if any.
-If the instrument is not in English, a certified translation is in English.
-List of Directors & Secretaries

In order to register a business name in India firstly be definite if you want to register a Brand name or Company name.
Brand name registration involves trademark registration where you have to register the brand name along with the logo of the brand.
If you want to register a company name then you have to follow the registration process for starting a company in India which is:
-Acquire Digital Signature Certificate (DSC)
-Acquire Director Identification Number (DIN)
-Create an account on the MCA portal
- New user registration @ mca.gov.in Incorporate or Apply for the company to be registered.

Yes, a non-resident of India can become a member of the Board of Directors of a company registered in India. There is only one condition that at least one director must be an Indian citizen and Indian resident both in the company.
Also, there are several types of directorships available that a Foreign national can take in an Indian company such as Women Director, Independent Director, Small Shareholders Director, Additional Director, Alternative and Nominee Director.

1. Extensive Targeted Audience
Because of the large population and unlimited market area, foreigners enjoy the benefit of the extensive targeted audience.
2. Comprehensive Tax System
The recent changes in the Indian tax system by the Direct Taxes Code as well as the Goods and Service Tax (GST) council has enabled the ease of doing business in India.
3. Business-friendly Laws for International Businessmen.