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Start Your Indian Subsidiary
Like additional limbs to the main body, subsidiaries let the holding firm connect with various markets, industries, and nations. From a legal standpoint, an Indian subsidiary is considered an Indian corporation and must adhere to all applicable compliances for Indian enterprises.October 12, 2021
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INTRODUCTION
What is an Indian Subsidiary?
The most convenient and approachable way for international corporations to establish a business in India is through the creation of an Indian subsidiary. In the majority of industries, the Indian government permits 100% FDI when a business is established. This serves as another justification for foreign nationals and organizations to give up looking for a private company structure before starting a firm.
Because an Indian structure is centralized and regulated by the Companies Act of 2013, it is also advantageous. To withhold the majority or entire share of stocks, all you need is a location of business in India and one resident director. Though it is easier to start and maintain a firm, these organizations nevertheless need to consider relevant legal requirements. In India, a foreign company is another term for a foreign entity’s Indian subsidiary.
ADVANTAGES
Advantages of registering a foreign business in India
simple gate of entrance
As a private corporation, it is relatively straightforward to enter the Indian commercial environment in comparison to other business structures. Aside from lax standards, the setup is trouble-free for the business. With online procedures and one-window processing, the incorporation process and post-registration procedures have been made simpler.
enduring presence in India
The foreign nationals or corporations create a permanent place of business and a legal entity in India by forming a subsidiary there. A business that is registered in India is a different legal entity from its investors and promoters.
strategic command of the activities
Despite being a foreign entity, this structure aids in the promoters' strategic control over the operations and activities. The foreign entities profit from the indirect control and oversight when there is at least one resident Indian director.
Growth with restricted liability
The expansion of the company is the ultimate purpose of opening an overseas branch. One further benefit of breaking into a new market is having little responsibility. With this framework, you not only protect your liabilities but also raise the value of your brand globally.
A LIST OF DOCUMENTS
📄 Online Registration
Documents Required to Register an Indian Subsidiary Company
To register a foreign subsidiary in India, the following documents are mandatory from both Indian and foreign shareholders or directors:
📸 Photograph
Recent passport-size photographs of all shareholders and directors.
🧾 PAN Card (For Indian Nationals)
PAN card copies of Indian shareholders and directors.
Note: Foreign nationals must provide a valid passport (apostilled or notarized).
🪪 Identity Proof
Voter ID / Passport / Driving License of all shareholders and directors.
📬 Address Proof
Latest telephone bill, electricity bill, or bank account statement (not older than 2 months) of all shareholders and directors.
🏢 Business Address Proof (India)
Latest utility bill (electricity/telephone) for the registered office address in India.
📝 No Objection Certificate (NOC)
NOC from the property owner of the registered office premises.
📃 Rent Agreement
Rent agreement of the registered office (if the premises are rented).
🌐 For Foreign Entities
📑 Constitutional Documents
Apostilled copy of the company’s charter, statutes, or Memorandum and Articles of Association (MoA & AoA).
If not in English, a certified English translation is required.
👥 List of Directors and Secretaries
On official company letterhead, duly apostilled or notarized.
🏠 Place of Business
Full address of the principal place of business of the foreign company.
🧑💼 Authorized Representative
Name and address of the individual authorized to receive legal documents on behalf of the foreign entity in India.
📁 Previous Registrations (If Any)
Details of any prior place of business opened or closed in India by the foreign entity.
How do you pick a name?
Special Name
Essentially, it establishes the company's brand and, ideally, is a newly invented term.
Business Item
The company's business activity should be implied by the second portion of the name.
Type of Constitution
The suffix "Private Limited" must be included at the end of the company's name.
🌐 Online Registration
Register a Foreign Company in India in 3 Easy Steps
✅ Step 1: Answer a Few Quick Questions
Complete our quick questionnaire in less than 10 minutes
Provide basic business details and required documents
Make payment securely through trusted payment gateways
👨💼 Step 2: Our Experts Take Over
Assigned Relationship Manager for end-to-end assistance
Procurement of Digital Signature Certificates (DSC)
Application for Name Reservation under RUN (Reserve Unique Name)
Drafting of essential incorporation documents including MoA and AoA
Filing for Certificate of Incorporation with MCA
🏁 Step 3: Your Indian Subsidiary is Ready
Company gets registered within 12–15 working days*
You receive Certificate of Incorporation, PAN, TAN, and other statutory documents
*Subject to government processing timelines
🛠 The Registration Process
Timeline to Register a Foreign Subsidiary in India
Day 1
Apply for Digital Signature Certificates (DSC)
Day 2 – 4
Check company name availability
Submit application for Name Reservation (RUN)
Name reservation confirmation from MCA
Day 5 – 7
Draft Memorandum of Association (MoA) and Articles of Association (AoA)
Prepare supporting incorporation documents
Pay stamp duty
Notarize and apostille (if applicable) all required documents
Day 9 – 10
File incorporation application with Ministry of Corporate Affairs (MCA)
Apply for Director Identification Number (DIN)
Apply for company PAN and TAN
Day 11 – 12
Wait for government processing
Receive Certificate of Incorporation
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
An Indian subsidiary is registered as a Private Limited Company. The basic requirements include:
A minimum of two directors, with at least one director residing in India.
At least two shareholders (individuals or corporate bodies). One person can act as both a shareholder and a director.
A registered office address in India (can be commercial or residential premises).
India allows 100% FDI under the Automatic Route for most industries. Under this route:
No prior approval is needed from the Reserve Bank of India (RBI).
Only post-investment reporting is required.
However, certain sectors require prior approval from the RBI or other authorities before investment. These include industries deemed sensitive or regulated.
Foreign Direct Investment (FDI) is prohibited in the following sectors:
Chit Fund Business
Nidhi Companies
Agriculture and Plantation (except controlled-environment activities like floriculture, seed development, etc.)
Real Estate Business or construction of farmhouses
Trading in Transferable Development Rights (TDRs)
A wholly owned subsidiary is set up as a Private Limited Company.
The foreign parent company subscribes to 99.99% of the shares.
One share is held by another individual (usually a director) to meet the minimum shareholder requirement.
The company is incorporated as per the Companies Act, 2013 with all legal compliance and RBI filings.
There is no mandatory minimum paid-up capital. However:
The minimum authorized capital should be ₹1 lakh.
Each shareholder must subscribe to at least one share.
It is advisable to infuse sufficient capital based on initial business needs and industry expectations.
Name application is made using the RUN (Reserve Unique Name) service on the MCA portal.
You can propose two name options in order of preference.
Yes, you may use the foreign parent company's name as part of the Indian subsidiary’s name, provided it complies with MCA naming guidelines and name availability is confirmed in advance.