Subsidiary Registration in India for Foreign Companies — Updated Practical Guide India continues to attract global companies due to its rapidly expanding economy, tech-driven market, and government initiatives such as Digital India, Startup India, and Make in India. Setting up a subsidiary is one of the most efficient and compliant ways for foreign companies to establish a long-term presence in the country.
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A full professional guide is available here: Subsidiary company registration in India for foreign companies
What Is a Subsidiary in India? A subsidiary is an Indian-registered company in which the foreign parent owns more than 50% of share capital. It operates independently under the Companies Act, 2013 and allows foreign founders to: ● Operate in India with 100% ownership in many sectors ● Access local hiring, payments, and banking ● Protect their liability ● Enter new markets with ease
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Official regulatory details may be verified at: india.gov.in DPIIT
Complete Process: How Foreign Companies Can Register a Subsidiary in India
1. Obtain Digital Signature Certificate (DSC) Foreign directors must acquire DSCs to sign online documents on the MCA portal.
2. Director Identification Number (DIN) DIN is mandatory for each director and is filed with incorporation forms.
3. Company Name Approval Name reservation is filed through the MCA’s RUN/Spice+ system. Reference authorities: india.gov.in dpiit.gov.in
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4. Filing Incorporation Documents Mandatory documents include: ● Parent company charter documents ● Directors’ passport & address proof ● MOA & AOA ● Declaration from directors & subscribers
Upon approval, MCA issues the Certificate of Incorporation.
5. Apply for PAN, TAN & GST Registration These are essential for taxation and business operations. ● PAN/TAN → incometax.gov.in ● GST → gst.gov.in
6. Optional Registrations for Benefits ● MSME/Udyam Registration → udyamregistration.gov.in ● Startup India Recognition → startupindia.gov.in
7. Sector-Specific Licensing Depending on your industry: ● Food/FMCG → fssai.gov.in ● Manufacturing → dcmsme.gov.in ● Investment policies → dpiit.gov.in
8. Open a Corporate Bank Account Required for foreign investment remittance under FEMA regulations.
Global companies often use professional support services such as: StartupLab
Timeline & Cost Structure Stage
Typical Duration
Name Reservation
2–5 Days
Company Incorporation
10–18 Business Days
Compliance Filings
Ongoing
Subsidiary Registration in India for Foreign Companies — Updated Practical Guide
Subsidiary Registration in India for Foreign Companies — Updated Practical Guide India continues to attract global companies due to its rapidly expand...
