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Subsidiary company registration in India- Steps involved

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    SUBSIDIARY COMPANY INCORPORATION IN INDIA

     

     

    There are many options available for foreign company registration in India like branch office, liaison office, subsidiary companies etc.

    However, one of the most popular and tax efficient manner of business set up in India by foreign companies is in the manner of

    Subsidiary Company Registration in India.

    Here, parent company holds more than 50% shares of the Indian company to make it its subsidiary. In case 100% shares of the Indian company are held by parent company, it is called as wholly owned subsidiary of its parent company. Here, the status of Indian subsidiary company would be that of an Indian entity unlike branch office or liaison office, which remains a foreign entity in India.

    Subsidiary company can be in the form of private limited companies as well as public limited companies.

    Steps Involved in Subsidiary Company Registration in India

    Following are the basic requirements and steps involved in subsidiary company registration in India:

    • Minimum 2 Directors and 2 Shareholders are required for subsidiary company registration
    • Out of same, at least 1 Director must be an Indian Director. There may be any number of foreign directors
    • Although shareholders can be companies also but directors need to be an Individual only.
    • Local office address in India is required as registered office
    • Although there is no minimum share capital prescribed, however, there must be sufficient share capital with which an Indian subsidiary is registered.

    Normally, the capital should be sufficient to meet day to day expense of the company for initial 4-6 months till company starts generating revenue.

    • First step is to apply for Digital Signature certificate of all the Directors.
    • Second step is to apply for name approval of the proposed company. Here, 2-3 names along with objects ( nature of business of the company) is applied and any one

    Name at the discretion of the ROC/MCA is approved.

    • Third step is to apply for final incorporation of the company by drafting the charter documents like MOA, AOA, filling of ROC forms, applying for Director Identification numbers,

    Applying for PAN and TAN, ESI and PF number of the company

    • Finally, Certificate of Incorporation (COI) is generated and company is incorporated.
    • Once company is incorporated, it has to apply for opening current account in the bank
    • Then , it may apply for GST registration, Import Export License and other licenses/approvals required for running a particular business/profession
    • Within 30 days of subsidiary company incorporation, the company has to hold board meetings and appoint first auditors of the company
    • Both the shareholders have to bring share subscription money into the Indian bank account and apply for certificate of commencement of business with 60 days of the incorporation.
    • Post receipt of share subscription  money from the foreign shareholders, Indian company has to intimate RBI about such receipt by creating entity master on RBI portal and filing of
    • FIRC, KYC and FCGPR forms ( RBI compliance) and also file necessary forms with ROC for share allotment and issue share certificates (ROC compliance)

    With all the aforesaid steps, process of subsidiary company registration in India is completed.

    In case you need any clarification or need any assistance, please call @ +919899217778 or visit our website www.ezybizindia.in