Registration of Indian Subsidiary Companies:
Your Doorway to Business Growth
Expanding a business into India offers a multitude of opportunities for international companies. Foreign businesses can create a presence in one of the fastest-growing economies in the world by registering an Indian subsidiary company. At Vijendra & Co, we provide comprehensive services to assist businesses with Indian Subsidiary Company Registration, ensuring a smooth and efficient process.
What is a subsidiary business?
A subsidiary is a business that is owned or managed by another business, known as the parent company. If a foreign company owns more than 50% of the equity shares, it may establish a subsidiary in India through the Indian Subsidiary Company Registration procedure. As a result, the parent corporation can continue to exercise control while growing its business in India. Subsidiaries in India are governed by the Companies Act, 2013, ensuring transparency and legal compliance.
Advantages of Subsidiary Company Registration in India
Indian Subsidiary Company Registration comes with numerous advantages, including:
1. Access to a Large Market: India has a vast consumer base, offering growth potential across various industries.2. Limited liability: The liability of a shareholder is limited to the amount of money they have invested.3. Separate Legal Entity: An Indian subsidiary is treated as a separate legal entity, ensuring the parent company's liabilities are distinct from the subsidiaries.4. Tax Benefits: Eligible companies may benefit from tax incentives and deductions under Indian law.5. Ease of Compliance: India provides a well-defined regulatory framework for foreign subsidiaries.6. Investment Opportunities: Establishing a subsidiary allows access to Indian capital markets.Requirements for Indian Subsidiary Company Registration Before an Indian subsidiary company may start the registration process, a few requirements must be met:
1. Parent Company: At least 50% of the subsidiary's ownership must be owned by a foreign company.2. Directors: At least two directors must be based in India, and at least one of them must be a resident.3. Shareholders: A minimum of two shareholders, who may be either private citizens or business organizations.4. Registered Office: A physical address in India is mandatory for official communication.5. Authorized Capital: There is no minimum capital requirement; however, the authorized capital should reflect business needs.Eligibility for Subsidiary Company Registration Foreign entities planning Indian Subsidiary Company Registration must meet the following eligibility criteria:
1. The parent company must be legally registered in its home country.2. Adherence to the Indian government's Foreign Direct Investment (FDI) regulations.3. Adherence to the Companies Act 2013, and other regulatory frameworks.4. Designating an Indian resident director. Here’s a detailed list of documents required for subsidiary company registration in India, categorized by the parent company, Indian directors, and the subsidiary company itselfFor the Foreign Parent Company:
1. Certificate of Incorporation – Notarized and apostilled.2. Board Resolution – Authorizing the establishment of a subsidiary in India and appointing authorized representatives.3. Copies of the articles of association (AOA) and memorandum of association (MOA) that have been notarized and apostilled.4. Address Proof of Parent Company – Utility bill (not older than 2 months) or official bank statement.5. Authorized Representative Details: The authorized signatory's passport and proof of address.6. Declaration from Parent Company – Stating their intention to establish a subsidiary in India
