There are many options available for any foreign entity to set up business in India like in the form of branch office or liaison office or project office or private limited company or LLPs or Joint Ventures etc.
However, one of the most popular and widely used options for entity registration by any foreign entity in India is in the form of Subsidiary Company Registration in India.
Establishing a subsidiary is a wise and preferable method of expanding its foreign business in India. Several foreign entities have shown lot of interest, of late, in starting a business in India as our nation offers a lot of profitable opportunities owing to fastest growing economy.
In order to become subsidiary, the parent firm must possess at least 50% of the shares of the subsidiary. When the holding company owns 100% shares of the subsidiary, the subsidiary is referred to as a wholly-owned subsidiary of the parent company. Further in this article, we will explore the benefits and requirements for Subsidiary Company registration in India.
Benefits of subsidiary company registration in India are as under:
Can use brand of Parent Company- Indian subsidiary can use the brand name of parent company.
Separate legal identity- As per Indian laws, a subsidiary is treated as a legal entity separate from its parent company.
Easy transfer of shares- Shareholders of a company limited by shares can transfer their shares to others. Transferring shares is simple and only requires completing and signing a share transfer form and giving the share certificate to the buyer.
Operate efficiently through a subsidiary- By breaking up a big firm into smaller, more managed entities; subsidiaries enable the parent company to operate more efficiently.
Acquire property in India- As a subsidiary enjoys the benefit of having a separate legal identity in the eyes of law, it is permitted to acquire properties in India.
No Restrictions on activities- Unlike branch office and liaison office, subsidiary company do not require permission of RBI for doing any business activities provided such business activities are permissible as per law and are covered under automatic routes and are not falling under prohibited routes.
All the above factors make subsidiary company one of the most preferable forms of foreign company registration in India.
Following requirements need to be fulfilled for Subsidiary company registration in India
The documents required for Subsidiary company registration in India are as follows:
For an Indian National
For a Foreign National
Any documents relating to foreign directors or foreign shareholders need to be notarized and apostiled/ consularized in the foreign company.
Following steps are involved in Subsidiary Company Registration in India:
The above completes the entire process of subsidiary company registration in India.
In case you need any clarification or have any queries, please call @ +919899217778 or visit our website www.ezybizindia.in