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    Indian Subsidiary of Foreign Entity

    There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast growing market, and have access to some of the best human resources in the world.

     

    Investment and acquisition of equity shares of a Indian Subsidiary Company of Foreign Entity can be broadly divided into two categories:
    – investment under automatic route and
    – investment under Government approval route.

     

    The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of upto 100% is allowed under the automatic route in most activities/sectors in India. Investment in activities/ industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method.

     

    ComplianceIndia can be your legal and professional partner in India to get your New Company/ Subsidiary in India started quickly and cost-effectively.

    Advantages of Indian Subsidiary of Foreign Entity

    Separate Legal Identity in eyes of Law

    By registering a subsidiary in India, the foreign nationals or entities establish a permanent place of business in India and has a Separate Legal Identity in eyes of law.

    Different management system from Parent Company

    It has management structure of its own, different from the parent company.

    Limited Liability

    Shareholders or the owners of a Company have a limited liability towards the company.

    Foreign Direct Investment

    In case of Indian Subsidiary, FDI is allowed 100% under the automatic route without any prior permission. However, it requires posts facto filing/intimation to the Reserve Bank of India.

    Business Expansion

    Its ultimate goal is expansion of business by accessing into New Market. It enables the Parent company to expand its target consumers and introduce its Products/ Services to new customers which will increase the brand value across the globe.

    Eligibility to form a Indian Subsidiary of Foreign Entity

    A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the Company, subject to the FDI Policy of India.

     

    At least, a minimum of one Director needs to be an Indian Director and Indian Resident along with an address in India for incorporation of an Indian Subsidiary Company of Foreign Entity. One person should be appointed as the representative of a foreign Company in India.

    How we Work?

    Step 1

    Fill-up our Contact Form and Submit

    Step 2

    Our Expert/ Legal Professional will contact you and provide brief guidance into the related context

    Step 3

    All Required Documents and Details to be provided as discussed with our Expert

    Step 4

    Our Expert will start Drafting of required documents for registration process

    Step 5

    Drafting of MOA & AOA

    Step 6

    Application for DSC of the Directors

    Step 7

    Once all required documents are prepared, Our Expert will file Form SPICe+ Form with ROC.

    Step 8

    On Successful filing of Form with ROC, Certification of Incorporation will be issued to you by ROC.

    Packages

    Consultation Charges

    Nil

    Complete assistance by Experts or Professionals indicating Process, Documents required, Benefits, Tax compliance, Legal Compliance, etc.

    Start-up Plan

    Rs. 2999/- only

    • – Registration of your Indian Subsidiary Company with MCA
    • – Company MOA and AOA
    • – Allotment of DIN of all Directors
    • – PAN and TAN Registration
    • – Expert advice from Experts/ Legal Professionals

    Basic Plan

    Rs. 7,999/- only

    • – Registration of your Indian Subsidiary Company with MCA
    • – Company MOA and AOA
    • – Allotment of DIN of all Directors
    • – PAN and TAN Registration
    • – GST Registration
    • – Board Minutes of First year on Incorporation
    • – Legal Drafting of consent letter and Appointment of First Auditor
    • – Expert advice from Experts/ Legal Professionals

    Advance Plan

    Rs. 14,999/- only

    • – Registration of your Indian Subsidiary Company with MCA
    • – Company MOA and AOA
    • – Allotment of DIN of all Directors
    • – PAN and TAN Registration
    • – GST Registration
    • – Current Account Opening in your nearest Branch
    • – Board Minutes of First year on Incorporation
    • – Legal Drafting of documents
    • – Appointment of First Auditor
    • – MCA Annual Filing of Form AOC-4/ AOC-4 XBRL and MGT-7
    • – DIR-3 KYC filing
    • – Expert advice from Experts/ Legal Professionals

    Ultimate Plan

    Rs. 29,999/- only

    • – Registration of your Indian Subsidiary Company with MCA
    • – Trademark Application
    • – Company MOA and AOA
    • – Allotment of DIN of all Directors
    • – PAN and TAN Registration
    • – GST Registration
    • – Current Account Opening in your nearest Branch
    • – Board Minutes of First year on Incorporation
    • – Legal Drafting of documents
    • – Appointment of First Auditor
    • – MCA Annual Filing of Form AOC-4/ AOC-4 XBRL and MGT-7
    • – DIR-3 KYC filing
    • – Income Tax Return filing of Company and its Directors
    • – Financial Statements preparation
    • – GST Return filing for 12 months
    • – Expert advice from Experts/ Legal Professionals

    Requirement for Incorporating an Indian Subsidiary of Foreign Entity

    1. Apply for DIN and DSC: DIN is required for appointment of all the Directors. DSC also need to be obtained so that Forms can be signed digitally and filed online with Registrar.

     

    2. Unique Name: While incorporating an Indian subsidiary, the requirements of the SPICe+ form have to comply. The Company has to choose a unique name keeping in mind the Company brand and the same to be reserved for a specific time.

     

    3. Open a bank account for the Subsidiary: An Indian subsidiary company has to open a Bank account. This is mandatory as the subsidiary company will have to carry on behalf of the Subsidiary.

     

    4. Start Operations: After the completion of the procedure mentioned above, the company can start carrying out business operations.

    Documents required for Indian Subsidiary of Foreign Entity Registration

    Photograph

    Latest passport size photograph in jpg format of all directors.

    PAN card

    PAN card copy of all Indian Directors. In case of Foreign nationals, copy of Passport (not expired) is required.

    Identity Proof

    Aadhaar Card/ Voter ID/ Passport/ Driving License of all Directors. In case of Foreign nationals/ Foreign Representatives, copy of Identity proof of the country they are staying in is required.

    Address Proof

    Aadhaar Card/ Voter ID/ Passport/ Driving License or Bank Statement/ Utility Bills not older than 2 Months in the name of the Directors.

    DSC

    For obtaining DSC of all Directors and Foreign nationals, alongwith above documents, DSC Application Form and Video Verification as per the latest guidelines of DSC issued by CCA is required.

    Office Address Proof

    Copy of Electricity bill or rent agreement and latest self- attested electricity bill in case of rented accommodation not older than 2 months.

    Authorised Representative

    Name and address of the Authorised Representative who shall receive legal documents on behalf of the company.

    Place of Business

    Full address of the principal place of business of the foreign entity.

    Attestation of the Documents in case Indian Nationals

    ll the documents shall be self-signed by the said Indian National and; If the Company has a Managing Director or a Company Secretary then all the above self-signed documents shall be signed by such Managing Director or the Company Secretary. In case the Company does not have a Managing Director or a Company Secretary then all the above self-signed documents shall be attested by the Banker of the Individual Director, where such Indian National is maintaining its bank account.

    Attestation of the Documents in case Foreign Nationals

    All the documents shall be self-signed by the said Foreign National and notarised by the Notary Public of the Country where the Foreign National is presently residing and Duly Apostille from the Country where the Foreign National is presently residing or; Duly attested by the Indian Embassy in the Country where the Foreign National is presently residing.

    Frequently Asked Questions

    1. I have a company incorporated outside India, Can I take my business into India with 100% ownership of my company?

    Yes, Indian government is also promoting foreign investment into India so you can incorporate yourself in India as 100% subsidiary company of your Foreign Company by subscribing 100% of shares of Indian Company or You can also run business by keeping yourself incorporated outside India and just having a place of business in India (As a Foreign Company)

    2. Will the Foreign entity require a local legal person or shareholder?

    Indian Laws allow you to retain 100% ownership by subscribing shares of the Indian companies, so there’s no need for a local shareholder. However, during the Company Registration in India, you will need a local legal partner.

    3. Is there any rule regarding the residential status of Directors?

    Yes, Every company incorporated in India must have at least 1 Resident Director.

    4. When a director is said to be a Resident Director?

    A director is said to be the resident director if he stayed in India for at least 182 days in the previous financial year.

    5. We do not wish to allot any shares to Indian resident Director. Is that allowed?

    Yes. It is not necessary that a director should also be a shareholder in Indian Company. As we said earlier, you as a foreigner or foreign company can retain 100% ownership of Indian Company.

    6. What are the requirements to be a Director?

    The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Private Limited Company.

    7. Is an office required for starting a Indian Subsidiary of Foreign Company in India?

    An address in India where the registered office of the Company will be situated is required. The premises can be a commercial/ industrial/ residential where communication from the MCA will be received.

    8. Can I provide anything other than electricity bill as the residential proof of address?

    Yes. The foreign entity can provide the latest Bank Statement as address proof of the Director instead of a utility bill. Just make sure your bank statement has all the latest entries.

    9. What are the documents required for incorporation?

    Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

    10. What are the documents required for Foreign National during incorporation?

    If a foreign national is on the Board of Directors, then a copy passport along with copy of address proof that is apostilled by the Indian Embassy or a Notary will be required. In addition, the witness of the MOA and AOA documents would have to be a Notary or the Indian Embassy. If the shares of the Indian Company would be owned by a Foreign Company, then a Board of Resolution also needs to be passed by the foreign company for acquiring shares in the Indian company.

    11. How long is the incorporation of the Indian Subsidiary of Foreign Company valid for?

    Once a Indian Subsidiary of Foreign Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

    12. What is a Digital Signature Certificate?

    A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Company.

    13. What is Director Identification Number (DIN)?

    Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

    14. Can a foreign company or foreign national own or start a business in India?

    Yes, a foreign company or foreign national can own or start a business in India by acquiring equity shares of the company. Investment in a Company can be under two routes, automatic route or Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and is allowed in most of the businesses.

    15. Can a foreign national be Director of an Indian company?

    Yes, foreign nationals can be Directors of an Indian company after obtaining a Director Identification Number. Director Identification Number for a foreign national can be obtained by applying for the same with the Ministry of Corporate Affairs.

    16. What are businesses in which foreign nationals or companies can’t invest?

    Foreign investment in any form is prohibited in businesses engaged or proposes to engage in the following business: i) Business of chit fund; or, ii) Nidhi Company; or, iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, pisciculture, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to agro & allied sector and tea plantations); or, iv) Real Estate business, or construction of farm houses (Does not include development of townships, construction of residential / commercial premises, roads or bridges); or, v) Trading in Transferable Development Rights (TDRs).

    17. What are the requirements for starting a business in India?

    For a foreign national or foreign company to start a Company in India, the foreign National must have an address for Registered Office in India and one Director on the board, who will be a Indian Citizen and Indian Resident.

    18. Are there any further regulatory requirements after incorporated Company?

    Yes, after incorporation of the Company and flow of equity fund into the Company from foreign source, Reserve Bank of India must be notified about the foreign investment in the Company through proper filing. In case the activity performed by the business requires Government approval for Foreign Investment, approval must be obtained prior to the funds being invested in the company.

    19. How long is the Indian Subsidiary of Foreign Company Registration process in India?

    Complianceindia can incorporate a Indian Subsidiary of Foreign Company in 7-15 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.

    OUR SERVICES

    Private Limited Company Incorporation

    ₹2,999/-

    Looking to Start a Company in India? Contact us for complete solutions to your needs…

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    Indian Subsidiary Company Registration

    ₹9,999/-

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    ₹4,999/-

    Complete Solutions for Trademark Registration, Opposition, Reply, Renewal etc…

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    ₹999/-

    Complete Solutions for GST Registration, Modification, Queries for all GST matters…

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    GST Return Filing

    ₹499/-

    ST Return Filing Solutions, NIL GST Return Filing, GST LUT Filing, GST E-Way Bill, Reply to GST Notice…

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    Accounting and Tax Services

    ₹499/-

    Complete Solutions for Tax, Payroll, TDS, Income Tax for Individual and Company etc…

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    Private Limited Annual Compliances

    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your Company and Directors...

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    One Person Company Annual Compliances

    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your Company and Director...

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    LLP Annual Compliances

    ₹2,999/-

    Solutions for all yearly and event based compliance requirements related to your LLP and Partners...

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    XBRL Conversion and Filing Services

    ₹5,000/-

    Get your XBRL financials ready for filing with MCA, BSE, NSE etc...

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    WHY TO CHOOSE US

    Recognised by Govt. of India

    We are Govt. recognised registered Company providing Financial and Legal aspects to clients all over India.

    Professional & Experienced Team

    We are a strong team of 25 energetic people with 2 Chartered Accountants and 4 Company Secretaries.

    Quick Turnaround Time

    From our past records, we assure you 100% accuracy in services we provide within the timeframe mentioned.

    Cost Effective Service with Easy EMI

    With us, you can be confident that needs will be met and agreed-upon services will be provided at a fair price with an option of Easy EMI.

    5000+ Satisfied Customers

    We provide financial, taxation and regulatory services to more than 5,000 Individuals and Businesses.

    ISO 27001:2013 Certified for Data Security

    Certified Service provider for quality standards, data security and confidentiality.

    Transparent Process & No Hidden Charges

    We practice transparent pricing for all services and separate cost into three categories, our fee, government fee, and GST. No Hidden Cost.

    All services under one roof

    From incorporation to routine finance, tax and regulatory services till Closure/ wind-up for businesses and Individuals.