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Foreign Subsidiary Registration

Ideal for foreign companies looking to invest in India
(Takes < 30 days)

Nidhi Registration Online

Name(Required)

Procedure for Indian Subsidiary Registration

Step 1
Complete our OPC Form

You must complete the information on our short questionnaire and provide any necessary papers.

 

Step 2
Obtain DSC and DIN from us

You will receive DSC and DIN from us. You must give your consent in order to move forward.

 

Step 3
MOA and AOA Filing for you

The information you provide will be checked by our professionals before any further procedures.

 

Step 4
Document Submission

On your behalf, we will prepare all the necessary paperwork and submit it to the ROC.

 

Step 5
Your work is completed

Once your business has been incorporated, we courier all of the necessary documents to you.

 

What is the Indian Subsidiary registration?

The company whose interests are directed and managed by another organisation is the Indian subsidiary Company. The relationship between two organisations' owning organisations and subsidiaries can be ascertained using the preference share capital and the paid-up equity share capital of the subsidiary firm. It may be owned by another organisation or at least partially claimed by that one. The firm that claims the subsidiary is referred to as a parent company or a holding company, it should be emphasised. A holding company does, however, differ somewhat from a parent firm.
Plus, an organization possessed 100% by another company is said to be a Wholly Owned Subsidiary of the organization who had made 100% investment in it. Along these lines, Hurry up! Apply for Indian Subsidiary Registration through Sahyog and appreciate the advantages.

Features of Indian Subsidiary Companies

  • The repatriation dividend is not subject to prior authorization requirements.
  • The three available financing options are debt, equity, and internal accruals.
  • The Indian subsidiary company is subject to the Indian Transfer Pricing Guideline.
  • For the purposes of income tax and all other applicable regulations, it is regarded as an Indian organisation.
  • Compared to a foreign organisation, which is subject to assessment at a rate of 40%, it is subject to tax at a lower rate of 30%.
  • The 16.995% dividend distribution tax (DDT) exposure rate.

Documents Required For Company Registration

All Directors and Shareholders

  • Utility bills (any)
  • A copy of a rent agreement with NOC from an owner.

For Proposed Registered Office (Residential or commercial)

  • Passport of foreign directors
  • Incorporation certificate issued by the foreign government
  • For opening a subsidiary company in India, a resolution from LLC/INC
  • A copy of Voter’s ID/Driving license/Passport & PAN Card of Indian director.
  • Photograph of all directors and shareholders. (Passport-sized)

What is Included In Our Package?

Registration Fee

Drafting of MOA/AOA

DSC and DIN

Advantages of selecting OPC

Limited Liability

The private limited company's directors and members are only liable for what they offer. This suggests that even if an organisation suffers misfortune or appears to be having financial problems as a result of crucial commercial activity, the personal assets of the owners, members, and directors won't be in danger of being taken by lenders, creditors, or the government.

Continuous Existence

Most of the time, an investor's status has no bearing on how long a business will last. A private limited company can continue to operate even after an investor dies.

Brand Value

Because of the sound corporate structure, clients feel trust and confidence in a brand when purchasing an organization's goods or services, employees feel secure in joining the private limited company, vendors feel secure in extending credit, investors feel secure in investing, and the brand value of an organisation will increase. In view of the strong brand value of the company, many new businesses start with no revenue and soon grow to be multibillion-dollar organisations in a matter of years.

Scope of expansion

Due to the advantages of limited liability, the Private Limited offer greater organisational transparency, and the ease with which capital may be raised from venture capitalists, financial institutions, angel investors, and other sources.

Foreign Direct Investment in India

In a select few business activities/industries, foreign direct investment (FDI) is completely unrestricted with no prior approval. However, FDI is not allowed in proprietorships or partnerships, and LLPs need prior government clearance.

Minimum Requirements for Indian Subsidiary Registration ?

Minimum 2 Shareholders

Minimum Capital of Rs. 1 lakh

DIN for all Directors

Parent company must hold 50% of total equity capital.

Annual Compliances of Indian Subsidiary Company

All Indian Subsidiary firms are required to adhere to the FEMA regulations, the firms Act, the Income Tax Act, and the transfer pricing standards. They occasionally tend to file income tax returns with the IRS, annual returns with the Registrar of Companies (ROC), and other necessary files with the Reserve Bank of India or the Securities and Exchange Board of India, for example. The requirement, however, depends on the type of industry, turnover, and number of representatives.

Frequently Asked Questions

How do you establish a subsidiary company in India?

The sole director is the most important requirement when starting these businesses. A Company secretary was also required a few years back. You must enter both your residence address and a service address when you register as a sole director. Only the service address will, however, be recorded in the public records. You will have a director who is an individual as well as another firm listed as a shareholder in the various paperwork you have provided regarding shareholders. The ownership of a whole business by another business is prohibited. Once the paperwork is complete, the Companies House will make a decision within 24 hours.

Can Indian Company be a parent company's wholly owned subsidiary?

Of course, a foreign company must own 99.99% of the shares of an Indian subsidiary in accordance with the Indian Companies Act, which stipulates that there must be at least two shareholders. Additionally, minority balance holdings are designated and kept in the name of an individual under the Indian Companies Act.

Are there any limitations on the operations that foreign firms' Indian subsidiaries can carry out?

The reserve bank of India has some guidelines that classify the following broad categories of operations for foreign companies: -A foreign firm is free to engage in the activities without seeking any licence. -Subject to limitations, participation in the activities by a foreign corporation is permitted. -It is not permitted for a foreign corporation to engage in the activities. These efforts are further described in a number of RBI under FEMA circulars.

Is it possible for a firm to establish an OPC as a subsidiary?

According to rule 3 of the 2014 Companies Rules, only a natural person who is an Indian and a resident of India is qualified to incorporate OPC. As a result, it is not necessary to consider whether any "body corporate" or other organisation type has only one member.

What are the prerequisites for registering an Indian subsidiary?

–At least 2 shareholders Minimum Capital of One Lac Rupees For all Directors, DIN 50 percent of the entire stock capital must belong to a parent business.

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