How to Register a Subsidiary in India as a Foreign Company? Step-by-Step Guide India has rapidly emerged as a global business hub, attracting companies across industries—technology, manufacturing, fintech, retail, pharmaceuticals, and more. With strong government initiatives like Make in India and Digital India, foreign investors are increasingly exploring the option to Register a subsidiary in India and operate within the fast-growing Indian market. If you're planning expansion, understanding the step-by-step process of Subsidiary company registration in India and regulatory requirements is crucial. A complete resource for foreign founders is also available here: Subsidiary company registration in India
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What Is a Subsidiary Company in India? A subsidiary is a separate legal Indian company where a foreign parent organization owns more than 50% equity, governed under the Companies Act, 2013. It offers benefits like: ● ● ● ●
100% foreign ownership in many sectors Independent legal identity Limited liability Local hiring and banking access
India’s official business and regulatory updates can be cross-checked through india.gov.in and dpiit.gov.in.
Why India Is a Top Destination for Global Expansion India's massive customer base, startup ecosystem, and support programs such as: ● Startup India ● MSME Schemes ● Make in India
have encouraged foreign companies to expand operations seamlessly. Many resources also showcase why India is strategic for scaling: ● StartupLab ● Top Angel Investors ● Funding Stages Simplified
Step-by-Step Process to Register a Subsidiary in India Step 1: Digital Signature Certificate (DSC) Foreign directors must apply for a DSC, which is mandatory for filing online documents with the MCA.
Step 2: Apply for DIN (Director Identification Number) DIN is required for all proposed directors.
Step 3: Reserve a Company Name (RUN Process) Name availability and approval are handled through the Ministry of Corporate Affairs (MCA). Official registration guidance can be referenced through: india.gov.in dpiit.gov.in
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Step 4: Filing Incorporation Documents Documents required include: Document Type
Examples
Corporate Documents
Parent company’s charter documents
Directors’ Proof
Passport, Address proof
Compliance Docs
MOA, AOA, Declaration forms
Once approved, the Certificate of Incorporation (COI) is issued.
Step 5: PAN, TAN & GST Registration After incorporation, the subsidiary must register for: Complianc e
Governing Website
PAN & TAN
incometax.gov.in / incometaxindia.gov.in
GST
gst.gov.in and gstcouncil.gov.in
GST is mandatory for companies engaged in taxable supply of goods/services.
Step 6: Udyam or Startup India Registration (Optional but Beneficial) For subsidiaries planning manufacturing, small-scale operations, or technology development, additional registration options include: ● Udyam Registration for MSMEs ● Startup India Recognition
Step 7: Sector Authorizations (If Applicable) Some sectors require licenses: Sector Food / FMCG
Authority Link fssai.gov.in
Manufacturing / Industrial Setup
dcmsme.gov.i n
Foreign Investment Policies
dpiit.gov.in
Step 8: Open an Indian Bank Account A corporate bank account is necessary for RBI-compliant capital infusion from the parent company under FEMA guidelines.
Foreign Compliance & FEMA Reporting Post incorporation and investment: ● FC-GPR filing ● FEMA reporting ● RBI documentation
These compliance processes ensure the structure legally qualifies as a foreign-owned entity.
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Helpful business compliance resources: Compliance Support for Subsidiaries Important ROC Filings
Cost & Timeline Stage
Timeline
Name Approval
2–5 Days
Incorporation
10–18 Business Days
Post-Complianc e
Ongoing
Why Many Global Businesses Prefer India Subsidiaries India offers: ● ● ● ●
Skilled workforce Tech innovation hubs Competitive operational cost Access to Asia-Pacific markets
Insights from the ecosystem include: ● Entrepreneur Success Stories ● Gurugram Business Growth Report ● Business Funding Modes
Foreign Company vs Subsidiary—Which Is Better? If you are comparing global structures, this reference may also help:
👉 Foreign company setup in India Final Thoughts
Registering a subsidiary in India unlocks a world of opportunity for international brands—from accessing massive emerging markets to hiring skilled talent and benefiting from government-backed growth initiatives.
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To get started with guidance from experts: Register a subsidiary in India
