Indian Subsidiary Company Registration – A Simple Guide

Indian Subsidiary Company Registration – A Simple Guide Setting up an Indian Subsidiary Company is a popular choice for foreign companies looking to expand their business in India. A subsidiary company is one where a foreign company holds more than 50% of the shares, making it a controlled unit of the parent company.

What is an Indian Subsidiary Company? An Indian Subsidiary is a Private Limited Company that a foreign company partly or wholly owns. It operates under Indian laws but remains connected to the foreign parent company. The subsidiary has its own legal identity and can conduct business independently in India.

Key Benefits ●​ ●​ ●​ ●​

Limited Liability: Shareholders’ liability is limited to their shareholding. Separate Legal Entity: It operates independently of the foreign parent. 100% Foreign Ownership (in most sectors): No local partner needed in many cases. Ease of Doing Business: Suitable for entering the Indian market and scaling up operations.

Steps to Register an Indian Subsidiary 1.​ 2.​ 3.​ 4.​

Obtain Digital Signatures (DSC): Required for signing online documents. Apply for Director Identification Number (DIN): For proposed directors. Name Approval: Apply for a unique company name through the RUN service. Draft Documents: Prepare Memorandum of Association (MOA) and Articles of Association (AOA). 5.​ File for Incorporation: Submit SPICe+ form with all documents to the MCA. 6.​ PAN & TAN Application: These are applied automatically with incorporation.

Documents Required ●​ ●​ ●​ ●​ ●​

Passport and address proof of the foreign directors Indian address proof for the registered office MOA and AOA Board resolution from the parent company Declaration and consent from directors

Tax & Compliance ●​ Subsidiary companies are required to comply with Indian tax laws and submit annual returns. ●​ They are also subject to audits, GST filings (if applicable), and other MCA compliances.

Conclusion Registering an Indian Subsidiary is a smart move for foreign companies aiming to explore the Indian market. It ensures full control, legal protection, and long-term growth opportunities under a well-regulated structure. With proper guidance, the registration process is smooth and efficient.