Select Page

Indian Subsidiary Company

Indian Subsidiary Company is an excellent business choice for foreign corporation who has plans to operate in India and explore this highly potential growth market.

Digital Filings can help you in…:

 Providing guidance on Attestation of required documents

 Arranging Digital Signature Certificate (DSC) and Director Identification Number (DIN) for Two director

 Getting the Name approval of the company

 Drafting of the MoA and AoA of the company

 Arranging the Certificate of Incorporation

 Obtaining PAN and TAN of Company along with Bank A/c Opening

From INR 53,899/- all inclusive fees; 12 Months* [email protected] 4,812/-

Understanding Indian Subsidiary Model

Due to its massive growth potential, India has always been the first choice for foreign companies to establish their operations here. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can set-up and operate a Company in India. This can be done by acquiring shares of the operational company within Indian Territory, however, subject to the Foreign Direct Investment (FDI) Policy of India. Additionally, at-least one Indian Director who is an Indian Resident is required for incorporating an Indian Company that is registered with an Indian address.

There are broadly two categories to understand for investing / or acquiring equity shares of an Indian Company:

  • Investment Under Automatic Route: Under this method, no prior regulatory approval is required for investment in equity shares of an Indian business. However, post-facto filing / intimation with the Reserve Bank of India (RBI) within 30 days of receipt of investment money in India is obligatory. Along with that, filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors is also mandatory. An FDI of up-to 100% is allowed under the automatic route in most activities / sectors in India.
  • Investment Under Government Approval Route: Investment in activities / industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. Reasons to Indian Subsidiary.

Key-Advantages of Indian Subsidiary Company

Easy to Transfer

Property Ownership

Foreign Direct Investment

Perpetual Succession

Distinct Entity

Easy to Transfer

Shareholders of a Indian Subsidiary Company can easily transfer their shares to another shareholder, simply by filling along with signing a share transfer form and handing over the share certificate to the buyer.

Foreign Direct Investment

In India’s context, FDI is allowed, without any prior Government approval, across numerous sectors through Company form of business. FDI is not allowed in Proprietorship or Partnership models, while an LLP firm requires prior Government approval.

Property Ownership

Indian Subsidiary Company is a juristic person thus it can acquire, own, or sell any property in its own name. Shareholders do not have any right to claim on the property of Indian Subsidiary Company till the time it is in existence.

Perpetual Succession

Until an Indian Subsidiary Company is legally dissolved, it can enjoy the benefits of an on-going concern, and since it’s a juristic person, its existence is unaffected by the demise or exit of any member (shareholders / directors) and any ownership change.

Distinct Entity

Indian Subsidiary Company is an independent corporate and legal entity established under the Company’s Act, therefore, it enjoys a range of legal capacities, including bank account opening, employees hiring, and taking on equity or obtaining licenses. Also, company’s shareholders and directors have no personal liability for its debts.

Required Documentation Chart

Indian Resident

To be Submitted by Directors / Shareholders

  • Self Attested and Scanned copy of PAN Card or Passport
  • Self Attested and Scanned copy of Voter’s ID / Passport / Driver’s License
  • Self Attested and Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)*
  • Specimen signature (blank document with signature)

For the Registered Office

  • Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)*
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of No-Objection Certificate from the property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

* Valid and Recent (less than 2-months)

Note: Registered office can be a commercial building, rented space, or even a residence, while in case of rented space, the no object certificate (NOC) from the landlord is required to be obtained) 
Non-Resident Indian / Foreign Resident

To be Submitted by Directors / Shareholders

  • Notarized and Scanned copy of Passport**
  • Notarized and Scanned copy of Passport / Driver’s License**
  • Notarized and Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)*
  • Specimen signature (blank document with signature)

**Documents to be apostilled if the director is from a Commonwealth country.

For the Registered Office

  • Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)*
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of No-Objection Certificate from the property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

* Valid and Recent (less than 2-months)

Note: Registered office can be a commercial building, rented space, or even a residence, while in case of rented space, the no object certificate (NOC) from the landlord is required to be obtained) 

Some Critical Insights!

Any foreign corporation can start a business in India in numerous formats, including a project office, a representative office, or even by opening a branch office, in all such type the Indian entity so created remains a foreign entity which is subject to higher rates of taxes and stringent regulations.

Do Not Worry!

Seasoned team of our vendor partners can effectively get your Indian Subsidiary Company registered and timely make it operational…
…so that you can manage and control your business, focusing on your mission critical tasks and proudly watching it Grow!

What People Frequently Ask…

How many people are required for forming an Indian Subsidiary Company?

To incorporate an Indian Subsidiary Company, a minimum of two people are required.

How many Shareholders / Directors required to form an Indian Subsidiary Company?

A minimum of two Directors and up-to a maximum of fifteen Directors are required to form an Indian Subsidiary Company. A minimum of two shareholders and a maximum of up-to 200 shareholders are allowed in an Indian Subsidiary Company.

Can Non-Indian Resident (NRI) / Foreign Nationals be a Director in an Indian Subsidiary Company?

Yes, a NRI or Foreign National can be a Director in an Indian Subsidiary Company after obtaining Director Identification Number, however, at-least one Director on the Board of Directors must be a Resident India.

Can NRIs / Foreigners hold shares of an Indian Subsidiary Company?

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of an Indian Subsidiary Company subject to Foreign Direct Investment (FDI) Guidelines.

What is the criterion of having an office for Indian Subsidiary Company?

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

 

Is Business Visa required for shareholders / directors?

The directors/shareholders visiting India for signing required documents must be on a Business Visa; otherwise, documents must be legalized/ attested.

Is there any need of an approval for Foreign Direct Investment (FDI) in India?

Most of the sectors (as listed in the prescribed charters) are open for FDI in India under automatic route, without any prior approval for incorporating an Indian Subsidiary Company.

What is the minimum capital requirement and required capital fee?

There is no minimum required for forming an Indian Subsidiary Company, however, an authorized capital fee must be paid to the Indian Government for issuing a minimum of shares worth INR 1 Lac during the incorporation process. Also, there is no requirement to show proof of capital invested in an Indian Subsidiary Company.

Pocket-Friendly Options

How we Do It…

Experienced partners at Digital Filings can assist you in registering and setting-up your Indian Subsidiary Company in a maximum of 30 to 60 business days, depending on the time coordination with the Registrar of Company (RoC) and clients.

g

First Arrange These

All documents are to be signed by the proposed directors or shareholders being a foreign national. Valid identity and address proofs of foreign individuals along with the relevant documents of foreign holding company need to be legalised either through Indian Embassy or to be apostilled.

In case the foreign person comes to India with original documents, then he must come on business Visa.

g

Now Arrange the Critical Ones

Digital Filings will help in getting the DSC and DIN (for at-least two directors), which are necessary for the proposed director of the Indian Subsidiary Company as well as to submit the documents for company registration. We will assist you in obtaining these in 5 to 7 working days.

g

The Name Game

Post applying for the DSC and DIN, we will assist you selecting a name (there is an option of submitting at-least one and a maximum of six name choices to the authorities) for your Indian Subsidiary Company and will help you arrange the relevant documents. The details will be used to submit SPICe i.e. INC-32 as well as the MoA and AoA, post which the Certificate of Incorporation will be approved in 5 to 7 working days.

g

The Final Steps

Once the approval for company name is obtained we will help you submitting the Company incorporation documents along with registration request to the Ministry of Corporate Affairs (MCA), which usually get approved and processed in 5 to 7 business days.

g

We Glad to do More!

A registered PAN and TAN are obligatory for every company to operate. Digital Filings will help in submitting the online applications for your PAN and TAN, which will be couriered to your registered office address in 21 working days. We will also help you opening a bank account for your Indian Subsidiary Company.

Our Patrons’ Speak

team-3“Heartfelt thank you for proficiently taking care of all the registration related tasks and letting me focus on my business operation without any stress.”

Srinivasan

team-3“Highly impressed by the personal attention of the professional staff in getting the GST registration done and arranging the MSME certification for my business.”

Hari

team-3“Thank you Digital Filings for all your professional and timely support in getting my company registered.”

Sachin Gupta

team-3“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”

Pawan

team-3“Thank you for simplifying the so complicated filing and documentation and getting my business smoothly registered.”

Amit

Mission Statement

Every Partner at Digital Filings is Focused...
...to Provide a Comprehensive Legal Assistance Mechanism...
...Diligently Customized for Emerging Entrepreneurs!

We at a Glance...

Digital Filings is a leading business and legal services provider in India, assisting entrepreneurs in effectively and economically setting-up and managing their venture. Digital Filings consistently ensures that your venture is always compliant, so you can efficiently focus on making your business ascend.

Our strong network of proficient partners thoroughly understands the business specific regulatory/legal requirements and is focused to assist business owners at every stage of their venture.

Our panel of competent professionals, including Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Financial Gurus, and Business Experts are just a call away to gladly serve you.

 

Book your appointment Today!

Media Talks

Knowledge Arena

Be our guest to browse the Knowledge Arena by Digital Filings and widen your knowledge-base. 

Digital Filings always strive to enhance the understanding of our patrons on the Nation's consistently modifying compliance environment. Our well-informed team of partners has diligently compiled numerous articles, guides, videos, and much more that you can browse anytime at your ease.

Easy Registration

Experts at Digital Filings can proficiently help in registering your sole proprietorship firm, either by getting you a GST / VAT Number, Service / Professional Tax Registration, a Shops & Establishments Act Registration, a Micro, Small & Medium Enterprises (MSME) Registration, or an Import-Export Code.

Supportive Team

The team of well-informed professionals at Digital Filings is just a phone call away to address every concern / query about the registration of your sole proprietorship venture. We will, however, put our best to make sure that all your questions are well-answered even before they strike in your mind.

Expert Support

Experts at Digital Filings precisely understand all of your requirements and strive to ensure that all the desired documents are in place so that you can effectively align yourself with every legal / administrative interaction. We will also provide you complete clarity on the process to set genuine expectations.