Your decision to begin your business journey in India starts with the decision of selecting the right business structure to follow. Corpseed Welcomes you to the Indian market, market best suited for maximum return on investment. We respect your decision and want to be a partner in your journey. A partner who can advise you to select the right options for your business structure.
Overview of Indian Subsidiary Company
Formation of a subsidiary is undoubtedly a smart and favored means for extending one’s business to foreign countries of choice. With a growth rate of more than 7 %, India is considered to be the most preferred destination for business. While operation from India, one can have access to 1.3 billion population with the world's most skilled manpower.
A subsidiary is an entity registered in a foreign nation. For setting up a subsidiary, the parent company must own at least 50% of the subsidiary. When the holding company owns 100% of the subsidiary then the subsidiary is known as a wholly-owned subsidiary of the parent company
A subsidiary is a partially or even a wholly-owned company by another large corporation. This parent corporation must have its headquarters in another country. A subsidiary works as per the laws of the country in which it is incorporated.
The parent company, however, has to carry the financials of the foreign subsidiary on its books. The foreign subsidiary has to obey the laws of the country they are operating in.
For example, IBM India private limited is a subsidiary of IBM.
A foreign company can create an Indian subsidiary with the following company structure:
Private limited company: - This company structure is not open to the public offering but enjoys other benefits over Public Company given by the Companies Act, 2013.
Public limited company: - This company structure is where the public offering is possible but required to comply with few more rules and regulations as compared to Pvt. Ltd as specified by the Companies Act, 2013.
LLP: - This company structure is where the liabilities of partners are limited.
Benefits of Indian Subsidiary Company
FDI: - 100% Foreign Direct Investment is allowed in many of the sectors without any Government approval
Easy Transferability of Shares to any other person
Access to huge Indian market
Maximum chances to have ROI more than average 7%
Separate Legal Entity to function with and to avail various Govt. Benefits
The subsidiary can acquire, own, enjoy and alienate, property in its own name
Liabilities of Indian Subsidiary Company
Subsidiary requires to file annual return with the Income Tax Department and Annual account audit by a CA is mandatory
Steps to incorporate a Foreign Subsidiary in India?
Step 1. Obtaining DIN & DSC
The initial step towards Foreign Subsidiary Company Registration in India is to applying for DIN (Director’s Identification Number) and DSC (Digital Signature) of the Directors. Following documents are required in order to obtaining the DSC and DIN:
Photo ID Proof of Business Owner: Aadhar card | Arms License | Department Id | Driving License | Freedom
Fighter id card | Pan Card | Passbook | Passport | Ration Card | Voter id card
Address Proof: Aadhar card | Arms License | Department ID | Driving License | Freedom Fighter ID Card | Pan Card | Passbook | Passport | Ration Card | Voter id card
Proof of Possession of Premises: Sale deed | Rent agreement | Electricity Bill, etc.
Photo: Passport size photograph
Note: Documents for non-residents and foreign citizens shall be notarized by the competent authority.
Step 2. Name Application Approval:
One of the most important steps is to choose a unique and available name for the proposed Company.
Step 3. Application for Incorporation:
It is the final step for Foreign Subsidiary Company Registration Process. This requires filing of the Articles of Association of the Company and Memorandum along with several other documents by the proposed directors and shareholders.
After the Incorporation application is approved, the Registrar will issue a Certificate with a Corporate Identification Number (CIN). The TAN and PAN of the Company will be issued.
Compliances and Treatment of Share
Compliances and Treatment of Share Capital invested by the Holding Company:
FEMA regulates the Foreign Investments in Indian Companies and the Reserve Bank of India (RBI). In case holding enterprise invests funds in the share capital of the Indian subsidiary, this has to be followed by RBI guidelines along with compliances under Companies Act 2013.
When a company is raising funds from a foreign investor, a two-stage reporting practice is to be followed:
By the time of receipt of funds: Such transaction has to be reported to RBI in details, within 30 days of receiving funds from foreign investor(s).
The share of the company should be allotted within 180 days from the date of receiving funds.
On allotment of shares: On allotment of the shares, company has to report in specified form (FC-GPR) to the RBI, within 30 days from the time of issue of shares:
How to get Indian Subsidiary Company?
Connect With Corpseed
Connect with the team corpseed to discuss specific requirements for your business at IVR: +91 7558 640 644 or email@example.com. It takes 20-25 minutes to discuss requirement.
Once you discuss the requirement, we will align a dedicated Account managers are here to help understand your business and provide best solutions and assist you with the entire process.
Real Time Update
Use our platform to track progress of application and many more. Always know what is going on with your application, what is in progress, and what is done.
Once job is completed, you will receive documents directly to your email ID and at your doorstep along with 30 days payback guarantee incase not satisfied with the services.
GST came in like an unexpected wave and changed the way one of a kind eating places operate in India. It has facilitated quite a few, whilst many had been lacking in a state of complete confusion. TheRead More
As a highest source of nourishment for over half the world's population, rice is by far one of the most essential commercial food crops. Its yearly yield worldwide is approximately 535 million tons. FRead More
Most of the business in the western side of India located under the boundaries of Gujarat As due to geographical location and neighbor states like Rajasthan, Madhya Pradesh and also Maharashtra. RightRead More
Patta Chitta online is property revenue reports which are preserved by the Tamil Nadu Government comprising every detail of the property associated with every individual. A Patta Chitta record has a Read More
An entrepreneur may make many mistakes during his business journey, be it wrong product positioning, absence of market research, sunk costs, inadequate marketing efforts or ignoring competition.Read More
I would like to thank for professionalism and efficiency. Your assistance and sound advice has allowed me to compute my tax bill in efficient and prompt manner.
Sun Line Communications Systems
What I liked most is the reporting method and the proper communication by CORPSEED team & delivery of services on time.
CEO and Principal Consultant at Advance Innovation Group
We are very pleased with the quality of service your company provides. We sincerely appreciate your work and the way you conduct business.
Founder and CEO at Skill Development Council of India
I have found CORPSEED to be quietly dedicated efficient, providing good value for services relating to company formation in Singapore!
CEO - ByKie
"I just experienced possibly the very best customer service provided by CORPSEED as they provided point to point details of their services."
AVP Services at Liqvid
"I heard about CORPSEED through a friend and I came to know that they are providing service of AYUSH and they assisted me for product and I am very about it."
"Thanks for the prompt response to my request, I really appreciate it. Moreover, your service charges on company formation are reasonable enough for new start-up company like us."
Samarpan Herbs Life
"We are very pleased with the service and professionalism provided by CORPSEED. In addition to registration, accounting and tax services you have assisted us with advice to better operate our Us business."
Founder - Mittre India
"Really happy with the services provided by CORPSEED as they not only deliver the product on time but also suggest other innovative services which will give add on to your business."