Foreign Subsidiary Company

Foreign Subsidiary
Registration in India

Foreign businesses looking to setup operation in India can invest and expand business in India by registering their business as a company with Ministry of Corporate Affairs (MCA) . The foreign entity can manage and control the company by registering it as subsidiary company of the foreign business.

Features of Wholly Owned Subsidiary:

Start a Full Fledged Company

Multiple business functions are permitted to operate inside a wholly owned subsidiary. Such as procurement, manufacturing, marketing, hiring, sales, servicing, and support etc. Software industry also can set up R&D subsidiaries here in India.

Treated as a Domestic Company For Tax Matters

A subsidiary company is treated as a domestic company under Indian tax laws and is eligible for all exemptions, deductions benefits as applicable to any other Indian company.

Flexible Foreign Direct Investment Norms

100 % FDI has opened up a new avenue for foreign companies to invest in priority sector like , infrastructure, shipping, etc and also Information Technology and most of the Service segments . Foreign companies needs to keep in mind these Foreign Direct Investment norms before setting up a subsidiary company.

  • State 1: Pre Incorporation
            1. Filing of digital Signature Application before Certification Authority
    2. Approval of Encrypted digital Signature
    3. Installation off Digital Signature in a secured USB token
  • Stage 2: Availing Name
    1. Public Search of name availability in Ministry’s Database
    2. Preparation of Object
    3.Preparation of 3-form RUN for Name availability
    4. Preparation of MOA & AOA after name approval
    5. Preparation of form DIR-2 (Consent of Directors)
    6. Preparation of Form INC-9 (from all the shareholders and Directors
    7. Notary/Attestation & embassy attestation of documents belonging to the representative of the foreign entity
  • Stage 3: MCA Filing
    1. Preparation and Attestation of Spice e-form by a certified practicing professional.
    2. Payment of Stamp Duty to the Government of the state in which the company is being incorporated
    3. Payment of processing fee to the Ministry of Corporate  Affairs
  • Stage 4: Liaisoning with officials
    Obtaining Appointment and holding meeting with Central Government officials and concerned Registrar of companies for streamlining the Incorporation Process

  • Board resolution from the subsidiary company for checking the name availability and authorization for representation.
  • Notary/Attestation & embassy attestation of documents belonging to the representative of the foreign entity for DSC application as well as for final documents
  • Address and identity proofs of the Indian director
  • NOC , rent agreement and utility bill of the registered office

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