Business Formation
Indian Subsidiary Registration
Incorporate an Indian company as a subsidiary of a foreign parent entity with proper FDI compliance and legalised documentation.
Overview
An Indian Subsidiary is a company incorporated in India where a foreign company holds more than 50% of the equity share capital. The subsidiary is a separate legal entity registered under the Companies Act, 2013 and must comply with all Indian company law, taxation and regulatory requirements.
Who Should Consider This?
- Foreign companies wanting to establish business operations in India
- Multinational corporations setting up an Indian presence
- Foreign startups expanding into the Indian market
Key Considerations
- FDI Policy: Compliance with India's Foreign Direct Investment policy and sector-specific conditions
- Legalised Documents: Foreign documents must be apostilled or consularised
- Indian Director: At least one director must be an Indian resident
- RBI Reporting: Foreign investment must be reported to the Reserve Bank of India
- Transfer Pricing: Transactions with the parent company must comply with transfer pricing regulations
Documents Generally Required
- Board resolution of the foreign parent company authorising Indian subsidiary incorporation
- Apostilled/legalised incorporation certificate of the parent company
- Apostilled/legalised MOA/AOA of the parent company
- Passport and address proof of foreign directors
- PAN, Aadhaar and address proof of Indian director(s)
- DSC for all directors
- Registered office address proof in India
Step-by-Step Process
- Verify FDI eligibility for the proposed business sector
- Obtain DSC and DIN for all directors
- Reserve company name through MCA
- File SPICe+ with apostilled/legalised foreign documents
- Receive Certificate of Incorporation
- File FDI-related reporting with RBI (FC-GPR)
- Obtain GST, PF, ESI and other registrations as required
Why Choose VSB Consultants?
We coordinate the complete Indian subsidiary incorporation process including FDI verification, document legalisation guidance, MCA filing, RBI reporting and post-incorporation compliance setup.
Requirements, documents, government fees, professional fees and timelines may vary depending on the applicant, jurisdiction, portal status and applicable law. The final scope will be confirmed after reviewing the specific case.
FAQ
Frequently Asked Questions
A subsidiary is a separate Indian company owned by the foreign parent. A branch office is an extension of the foreign company itself. A subsidiary has more operational independence and can engage in broader business activities.
Yes, certain sectors have caps on FDI percentage, require government approval, or are prohibited for foreign investment. The applicable conditions depend on the specific business activity.
The Indian subsidiary must file FC-GPR (Foreign Currency Gross Provisional Return) with RBI within 30 days of allotment of shares to the foreign investor.
Yes, dividends can be declared and repatriated subject to compliance with the Companies Act and RBI regulations. Withholding tax obligations under the Income Tax Act and applicable DTAA must be considered.
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