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How to Get Indian Subsidiary Registration in India?

Author: Enter Slice
by Enter Slice
Posted: May 25, 2019

If you are thinking about starting your business journey in India, then you should choose the right business structure to enjoy success in every step you take on. Based on the recent report, India has emerged as one of the quickly growing investment destinations for the foreign companies. At present, more and more foreign firms are opening their business venture in India and the make a direct investment in them. Now, a question comes in mind of all the foreign company is how to open and register the Indian Subsidiary company.

What is the Indian Subsidiary Registration?

Indian subsidiary firm is actually a company whose interests are held and controlled by another company. The holding company (which owns the subsidiary) actually determines the subsidiary company’s share capital as well as paid-up equity share capital. The relationship of subsidiary company exists between two companies.

It can be either owned or owned partly by another company. Sometimes, the holding company is called as parent company but it is slightly different from the parent company. Along with this, the company that owned 100 percent by another company is considered as the wholly owned subsidiary of the firm, which made a 100 percent investment in it.

Minimum requirements for Indian subsidiary registration

Once you have decided to launch Indian Subsidiary Company, you should ensure the minimum requirements, which need to meet for subsidiary company registration in India. Here are those minimum requirements.

  • The company should have at least two shareholders
  • Should have DIN for all the directors
  • The minimum capital of the company should be Rs. 1lakh
  • Parent company should hold 50 percent of total equity capital

Documents required to register Indian subsidiary

  • Identity proof of all the company directors i.e. Passport for foreign director and PAN for Indian director
  • Proof of business premises in India as well as proof of company head office such as legal documents, lease deed, electricity bill, etc
  • Resolution from LLC/INC for launching a subsidiary firm in India
  • Signed Indian subsidiary firm registration document
  • Scanned copy of company incorporation certificate given by the respective LLC/INC

Procedures for Indian subsidiary registration

Upon meeting the minimum requirements and having required documents, you can enter into the procedure for Indian subsidiary registration.

  • Firstly, you should obtain DSC (Digital Signature Certificate) and DIN (Directors Identification Number), which takes minimum 5-7days
  • You must submit a minimum one or maximum six proposed name to the MCA (Ministry of Corporate Affairs). Name approval can take about 5-6working days because it is subject to availability, MCA processing time, and naming guidelines.
  • Next, you should draft
Memorandum and Articles of Association (MOA) of the proposed firm. Then, submit the incorporation documents to MCA with the duly filled application for incorporation. Usually, MCA will take 5-7days to approve incorporation application.

  • Get the receipt of the certificate of incorporation from the ROC. Then, apply for PAN card and complete all the bank formalities to open the account. Submit necessary documents for FDI compliance after share capital subscription
About the Author

Enterslice is a Financial Technology Company and CA Firm. Our team of experts helps firms resolve their complex legal, risk, and compliance related issues and to get Company Registration, NBFC License, and FSSAI Registration etc.

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Author: Enter Slice

Enter Slice

Member since: Aug 24, 2017
Published articles: 10

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