Indian Subsidiary- Foreign Company
A foreign company which is planning to set up business operations in India may open its Indian Subsidiary under The Companies Act 2013.
What is a foreign company?
As per The Section 2, The Companies Act, 2013; a foreign company is a body corporate incorporated outside India having a place of business in India whether by itself or through an agent, physically or through electronic mode or conducts any business activity in India as per section 379:
where not less than 50% of the paid up share capital, whether equity, or preference or partly equity or preference, of foreign company is held by:
- One or more citizen of India, or
- By one or more companies or bodies corporate incorporated in India, or
- By one or more citizen of India and one or more bodies corporate incorporated in India,
MY Consultant’s has a team of experts in Indian subsidiary- foreign company registration for pan India locations. You may contact us to get your Indian subsidiary- foreign company registered in Delhi, Mumbai, Bangalore, Kolkata, Kanpur, Bareilly, Lucknow, Kanpur, Ghaziabad, Ludhiana, Faridabad, Meerut, Varanasi, Srinagar, Amritsar, Allahabad, Chandigarh, Bareilly, Moradabad, Gurgaon, Aligarh, Jalandhar or any other cities in India.
What is an Indian subsidiary- foreign company?
Indian- subsidiary is an operational business unit of a foreign company established in India. An Indian subsidiary can be formed in two ways:
- by Incorporating a company under the Companies Act, 2013, as a Joint Venture or a Wholly Owned Subsidiary.
- by Setting up an office in any form: Liaison Office / Representative Office/Project Office/Branch Office of the foreign company. which can undertake activities permitted under the Foreign Exchange Management Regulations, 2000.
Requirements to start a subsidiary company.
- Minimum 2 directors.
- Minimum 2 shareholders.
- Minimum capital of 1 lakh.
Process to incorporate a subsidiary company.
- Obtain DIN, DSC.
- Apply for name of company in form INC-1.
- After obtaining name approval, an applicant is required to file form INC-7 (Application for Incorporation of Company (Other than OPC).
- Form DIR-12 (Particulars of appointment of directors and the key managerial personnel and the changes among them).
- Form INC-22 (Notice of situation or change of address of the registered office of the company) along with Memorandum and Articles of Association of the Company.
- Pay fees and stamp duty.
- After payment, verification of documents is done.
- After verification, certificate of incorporation is issued.
Time for registration.
- Time taken for incorporation is 40-60 working days.
Why Needed: Reasons & Benefits
Features of the Indian subsidiary companies are:
100% Financial support
The parent company supports with the buying power, funds, technical expertise and other features which the subsidiary could not afford otherwise.
Controlled processes
Parent company controls the subsidiary.
Non-transferable loss
One company’s loss is not transferred to another company.
100% FDI
100% foreign direct investment.
Easily transferable
Subsidiaries are easily transferable.
Limited liability
Companies act 2013 imposes limited liability on both private limited and public limited business incorporation.
Documents Required
- Office address proof
For business address proof may be in the form of Electricity bill, rent agreement or any other government utility bill
- Pan card (Indian national).
Individual (Owner’s) PAN card is required for registration.
- Address proof (Indian and foreign national).
Any one document out of the Bank statement or updated bank passbook or Utility bill is needed for registration.
- Photo identity proof (Indian and foreign national).
Photo Id proofs of all the directors and members.
- Passport (foreign national).
valid Passport of all the members.