What is Indian Subsidiary ?

An Indian subsidiary is a company incorporated in India that is controlled by a foreign parent company. The foreign company holds the majority of the share capital of the subsidiary, which operates as an independent legal entity under Indian laws.

Indian subsidiary operates as an independent legal entity under Indian laws and is subject to local regulations and compliance requirements. The Indian subsidiary benefits from limited liability, local market access, and the ability to implement the parent company's strategic objectives within India.

Benefits

  • Limited Liability : Protects the parent company from subsidiary’s debts beyond its shareholding.
  • Market Access : Facilitates direct entry into the Indian market.
  • Strategic Implementation : Allows the execution of the parent company's strategies within India.
  • Regulatory Compliance : Enhances credibility with local clients and partners.
  • Tax Benefits : Access to tax incentives and deductions available in India.

Process

01

Digital Signature Certificate (DSC)

Obtain DSCs for all proposed directors of the subsidiary. This is required for filing e-forms with the Ministry of Corporate\r\nAffairs (MCA).

02

Director Identification Number (DIN)

Apply for DIN for the proposed directors of the subsidiary. This is mandatory for individuals intending to become directors in Indian companies.

03

Name Approval

Submit an application for name approval through the RUN (Reserve Unique Name) service on the MCA portal. The name should be unique and not similar to any existing company or trademark in India.

04

Incorporation Documents

Draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents define the company's objectives and the rules for its governance.

Prepare other required documents such as the declaration by directors, affidavits, and address proof.

05

Filing for Incorporation

File the incorporation application (Form SPICe+), including the MOA, AOA, and other required documents with the MCA.

Pay the requisite fees and stamp duty for incorporation.

06

Certificate of Incorporation

Upon approval, the MCA issues a Certificate of Incorporation (COI), which includes the Company Identification Number (CIN).

07

Post-Incorporation Registrations

Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the subsidiary.

Register for Goods and Services Tax (GST), Professional Tax, and other applicable tax registrations.

08

Bank Account Opening

Open a corporate bank account in the name of the subsidiary.

09

Compliance with Reserve Bank of India (RBI)

File necessary documents with the RBI under the Foreign Exchange Management Act (FEMA) for reporting foreign investment.

10

Other Legal Compliances

Obtain necessary licenses and permits specific to the business operations of the subsidiary.

Ensure compliance with industry-specific regulations and labor laws.

Documents Required

  • DSC and DIN : Passport-size photo, identity proof (PAN or passport), address proof (Aadhaar, voter ID, etc.).
  • Name Approval : List of proposed names, business activity description.
  • Incorporation : MOA, AOA, declarations (INC-9, INC-10), proof of registered office address, identity and address proofs of directors and subscribers.
  • PAN and TAN : Certificate of Incorporation, MOA, AOA, identity and address proofs of directors.
  • GST Registration : PAN of subsidiary, COI, MOA, AOA, proof of principal place of business, authorization letter/board resolution.
  • Bank Account Opening : COI, MOA, AOA, PAN card, identity and address proofs of directors and authorized signatories, board resolution.

Our Support?

  • Incorporation : We assist with document preparation, DSC and DIN acquisition, name approval, and filing for incorporation.
  • Regulatory Compliance : We ensure compliance with RBI regulations, manage tax registrations, and adhere to corporate laws.
  • Ongoing Compliance : We handle annual filings, board meetings, resolutions, and tax filings.
  • Additional Services : We offer HR and payroll management, accounting and bookkeeping, and legal support.

Frequently Asked Questions

Typically 4 to 6 weeks, depending on document preparation and processing.

Yes, in sectors where foreign investment is permitted.

Regulates foreign investments and requires reporting under FEMA.