If you are a foreign resident and want to kick start a business in India, go for Indian Subsidiary Company Registration. This column will describe everything about Indian Subsidiary Company Registration including the process for registration, requisite documents, advantages, and so on.
An Indian Subsidiary Company is a legal business structure owned and controlled by a foreign company or another Indian company. It is a parent company and holds a major portion of the subsidiary’s shares and ownership.
The key characteristics of Indian Subsidiary Company:
- Separate legal entity: A subsidiary company in India is considered a separate legal entity. It has won rights, liabilities, and obligations as prescribed in the Indian laws.
- Ownership: The ownership of the parent company holds control of the subsidiary. It exerts influence over the subsidiary’s operations, management, and decision-making.
- Limited liability: The personal assets of shareholders are protected from the subsidiary’s debts and financial obligations. In this business structure, the shareholders have limited liability.
- Taxation and regulations: Subsidiary companies in India are subjected to Indian taxation laws and regulations. Such companies must comply with the Indian tax requirements such as income tax, goods and services tax, and other applicable taxes.
Listicles for Indian Subsidiary Company approval:
- If Indian national: PAN card, Address proof, Identity proof (Aadhaar card, driving license, or voter ID card)
- If foreign national: Passport, Address proof, and identity proo,f
The mandatory documents:
- DSC & DIN
- Memorandum of Association (MOA)
- Article of Association (AOA)
- NOC from the owner of the place
- Certificate of Incorporation by the government
- Residential proof
The process for registration:
Registering for an Indian Subsidiary Company involves several steps elaborated below:
Obtain a Digital Signature Certificate (DSC)
To sign papers electronically, the subsidiary company's directors and authorized signers must get Digital Signature Certificates (DSC). DSCs are available from trusted sources.
Direction Identification Number (DIN)
Directors of the subsidiary company must apply for Director Identification Numbers (DIN). You can submit an online application for a DIN through the Ministry of Corporate Affairs (MCA) portal. Name approval Select a distinctive name for your subsidiary business and submit an application for name approval through the MCA's Name Reservation procedure. Make sure the name conforms with MCA requirements and is distinct from that of other companies.
Draft MOA & AOA
Create the subsidiary company's MOA and AOA. The goals, guidelines, and policies of the company are laid out in these documents. The Registrar of Companies (ROC) must receive them.
Submit incorporation documents
Submit the required paperwork to the ROC to finish the incorporation process. Form SPICe (Simplified Proforma for Incorporating Company Electronically) is the primary document used for this purpose. You must submit Form SPICe together with:
- MOA and AOA Director and subscriber declarations, as well as an affidavit
- Directors' addresses and identities must be proven.
- Directors of DSC
Certificate of incorporation
The ROC will issue a Certificate of Incorporation after verifying the submitted documents and information. This certificate is used to demonstrate the company's legitimacy.
Get PAN & TAN
Request a Tax Deduction and Collection Account Number (TAN) and a Permanent Account Number (PAN) from the appropriate authorities. They are crucial for maintaining tax compliance.
How we help you?
We aimed to proceed with a hassle-free Indian Subsidiary Company Registration to provide a seamless experience to our clients. At Darshan Corporate Pvt Ltd, we have a team of financial experts and legal professionals who help you with successful Indian Subsidiary Company Registration and provide 24*7 support. We are the leading CA firm in Delhi and provide comprehensive support during the entire approval process. Reach us anytime and avail our top-notch legal services at reasonable pricing.
You need to know before begin everything.
It’s completely an online procedure. We will only send our individual to your home or office for signatures.
Yes, an Indian company can be a subsidiary with 2 investors.
No minimum capital is required.
Subsidiary companies should have two directors including one (resident of India).
Two shareholders are essential to form an Indian Subsidiary company.
50% of the equity share capital
DIN of the directors is mandatory.