Register Your Foreign Subsidiary with Bizhub
Foreign investors are willing to start their business in India as the nation is providing tonnes of opportunities because of the fast-growing market.
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Foreign investors are willing to start their business in India as the nation is providing tonnes of opportunities because of the fast-growing market. Any foreign national except the citizens of Pakistan and Bangladesh or an entity that is formed and is operating outside India can invest in the Indian market. Indian Subsidiary is any company that is owned by a foreign company, the Companies Act, 2013 governs the registration process of the Indian Subsidiary.
The Economic liberalization of 1991 was a catalyst for the foreign direct investment in India. A subsidiary company is also called the sister company and the company which has a hold over the sister company is called the parent or holding company. The parent company holds control over the subsidiary company completely or partially.
The registration of the Indian subsidiary company is completely controlled by the Companies Act, 2013. As per the Companies Act 2013, a subsidiary company is a foreign corporation or a parent body that has a minimum of 50% of the entire share capital. The subsidiary must adhere to the laws of the nation in which they are planning to establish the entity.
To Start a company in India and Investing was never so easy, cheap and quick. One can start a wholly owned Indian subsidiary anywhere in India. There are no state-specific laws. There’s only one central law that governs Indian Subsidiary Set up across India. All you need a resident Indian director (not necessarily a shareholder but can be an employee!) and a rented (virtual) place of office to get going. 100% ownership, strategic decision always making and control of operations rest with your parent company.
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 markets and have access to some of the best human resources in the world. Cities in India like Pune, Bengaluru, Hyderabad, Ahmedabad are becoming popular IT hub for starting an IT company in India.
The requirement to register an Indian subsidiary Company
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Minimum two directors are required for incorporating a company
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One of the directors should be a resident of India
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No minimum capital is required to incorporate an Indian Subsidiary Company in India.
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Indian Subsidiary Company is required to have a minimum of two shareholders.
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The shareholders can either be individuals or the entity or a combination of both.
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The parent company is required to hold 50% of the total equity share capital.
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Director Identification Number for all the Directors.
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Documents required for obtaining the Indian Subsidiary Company registration
An applicant who is a foreign national has to submit the following documents
Passport
Driving license
Identity proof of the country they are staying in
The Indian Director has to submit the following documents
PAN Card
Aadhar card
Any utility bills.
The representative of the foreign company has to submit the following documents
Passport
Driving license
Driving license
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Why incorporate an Indian Subsidiary Company?
Procedure for registering an Indian subsidiary company at BizHub
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When we receive a request at BizHub our business consultant reaches to you, understands the business needs, and suggests you the best suitable type of entity for your business.
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A dedicated relationship manager is allocated to the business; the relationship manager will collect all the necessary documents. These documents will be simultaneously uploaded on the government portals.
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To incorporate a Private Limited Company in India, the following documents need to be submitted. 1. Supporting documents, minimum of two directors (one needs to be an Indian director who is also an Indian resident). 2. An acceptable name for the company.
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A dedicated relationship manager is allocated to the business; the relationship manager will collect all the necessary documents. These documents will be simultaneously uploaded on the government portals.
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After the name approval is obtained, it is necessary to draft the Memorandum of Association and file it within 60 days to complete the incorporation process.
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A minimum of two shareholders is required for a private limited company. Hence, the holding company in a foreign country must pass a Board resolution for the Incorporation of the Company in India and the subscription of shares of the proposed company.
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The Foreign Company can hold around 99.99% of the total shares of the Indian Company, while 0.01% of the company’s issued shares can be controlled by an Indian in trust with the foreign company
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Once the company is incorporated, it is necessary to open the Bank accounts and obtain the required licenses. Simultaneously, it is necessary to make filings with the RBI to indicate India’s foreign investment through the automatic route.
FAQs On Foreign Subsidiary
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.
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.
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 an Indian Citizen and Indian Resident.
You do not need to visit India for starting a business in India. You can complete the incorporation process for your business in India from any part of the world. However, If you wish to visit India for your business, You will require valid business visa for foreigner which may be valid from 6 month to 2 years.
Foreign investment in India in any form is prohibited in businesses engaged or proposes to engage in the following business: i) A business of chit fund; or, ii) Nidhi Company; or, iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to an agro& allied sector and tea plantations); or, iv) Real Estate business, or construction of farm houses (Does not include the development of townships, construction of residential/commercial premises, roads or bridges); or, Trading in Transferable Development Rights (TDRs).
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
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.
To incorporate a private limited company, a minimum of two shareholders are required. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies, including foreign companies.
A private limited company must have a minimum of two Directors and can have up to a maximum of fifteen Directors.
You can start a Private Limited Company with any amount of capital. However, a fee must be paid to the Government for issuing a minimum of shares worth Rs.1 lakh [Authorized Capital Fee] during the incorporation of the Company. There is no requirement to show proof of capital invested during the incorporation process.
No, you will not have to be present in India for firm or company registration process in India.
Yes, we promise an end-to-end support, which includes Bank account opening with a bank of your choice in India. We have corporate tie ups with multiple banks, including international banks. We co-ordinate with the bankers on your behalf and ensure that you can quickly start your operations.
We accept online payments in your desired currency. You may drop an email with your brief details, and we will send you quick payment option over email.
Can a foreign company be a shareholder of the subsidiary company in India with 100% shares?
The owners will not have any responsibilities. However, the Directors of the company will have responsibilities to run the operations and ensure adherence to Indian laws. Also, a director’s duties include:
i) determining and implementing policies and making decisions
ii) preparing and filing statutory documents with the Companies Office or other agencies
iii) calling meetings, including an annual meeting of shareholders
iv) maintaining and keeping records
v) binding the company to contracts with suppliers, lenders and others dealing with the company
Yes, if at one point of time you register your business as a particular type say for example as a Private Limited Company, you can change the type of the company in future. However, such a change can take place only after the completion of a minimum period of one year.
The Whole process of Company registration would take around 30-60 days subject to Ministry’s approval.
The companies that are dealing in Import export business will require the GST registration. Moreover, the Companies whose turnover exceeds INR 40 lakhs will require to register for GST.
Generally, it takes 3-4 working days for the Import and export licenses to come and it is valid for life time.
Yes, the Indian subsidiary company would need Auditing service. We, at BizHub have a highly qualified professionals who takes care of our client’s Audits.
We at BizHub have a secretarial compliance package which would serve all your requirements. Our retainership package will take care of it.
Yes, you are eligible for full refund subject to deduction of government fees that have been paid on your behalf. If we have not started working, you are eligible for full refunds. No questions asked!
Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. A dedicated Company Secretary will explain you how to register a company In India, what are the costs associated with it and process of investing in India. Write us at ………………………………………………
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