What is a Subsidiary Company and what is the process of subsidiary company registration in Hyderabad?
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Hyderabad is the city of nawabs and it has a growing manufacturing, tourism, and IT sector. It is the capital city of Telangana. A foreign national setting up a subsidiary company in Hyderabad is a good idea even though the city is steeped in history and tradition. The subsidiary company registration in Hyderabad can be done online within 8-10 working days via Form SPICe+. The process to register an Indian Subsidiary in Hyderabad requires a minimum of 2 shareholders and one should be a resident of India. In this article, we will discuss all the processes of subsidiary company registration in Hyderabad but first, we will learn about – What is a subsidiary company?
What is a subsidiary company?
A subsidiary is a company that is owned or controlled by another company. The parent company will typically own more than 50% of the Indian subsidiary. This gives the parent company a controlling stake in the subsidiary. In some cases, simply being the majority shareholder is enough to gain control.
What are the types of subsidiary companies?
The following are the types of Indian subsidiaries which can be established by a foreign national in Hyderabad:
- Private Limited Company
- Limited Liability Partnership
- Liaison office
- Branch office
Requirements to register a subsidiary company in Hyderabad
Listed below are the requirements to register a Indian subsidiary in Hyderabad:
- There should be a minimum of 2 shareholders and 1 should be a resident of India and the other shareholder can be a foreign national.
- The office of the Indian subsidiary should be located in the territory of Hyderabad, India.
- The DIN of all the concerned directors is required.
Process of subsidiary company registration in Hyderabad
The same procedure is followed when registering a subsidiary company in Hyderabad as it is when establishing an Indian subsidiary. The applicant company must be aware of the following steps that the authority needs in order to incorporate a company. The Indian Subsidiary must be registered with the Registrar of Companies (ROC). The process of subsidiary company registration in Hyderabad is as follows:
Step 1: The first step is to collect all the documents necessary for registration.
Step 2: Decide the name for the Subsidiary Company that is been registered in Hyderabad.
Step 3: The third step is to draft the AOA and MOA for the Subsidiary Company which includes the share capital, details of members, liability to members, shareholding details etc.
Step 4: File an application for subsidiary registration in the prescribed form i.e. Form SPICe+:
Spice+ for is divided into two parts:
- Part A: Apply for the name reservation of the company in Part A of the form Spice+. It can be used for taking the name approval of the proposed Company and also for filing Company registration in one go.
- Part B: In Part B of the Form Spice+, apply for the following services:
- DIN allotment
- Mandatory issue of PAN
- Mandatory issue of TAN
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- Mandatory issue of Profession Tax registration(Hyderabad)
- Mandatory Opening of Bank Account for the Company and
- Allotment of GSTIN (if so applied for)
Step 5: Open a Bank Account in Hyderabad under the approved name of the Subsidiary Company.
Documents required while incorporating a subsidiary company in Hyderabad
The following are the documents required while incorporating a Indian subsidiary in Hyderabad:
A. Company-related documents:
- Articles of Association and Memorandum of Association.
- If the property is rented, the lease agreement must be provided as proof of address; if the property is owned, a copy of the ownership documentation must be provided.
- Copy of utility bills.
- A copy of the promoter company’s resolution.
- Copy of capital structure of the company
- A copy of the Foreign Corporation’s Certificate of Incorporation.
B. Documents of directors and shareholders:
- Directors and designated shareholders must have a Director Identification Number (DIN) and a Digital Signature Certificate (DSC).
- Shareholder and director identification and address documentation.
- Photographs of the Directors and Shareholders.
- First Directors’ Investments in Other Entities.
- Directors’ and Shareholders’ Declaration.
We will conclude by saying that registering an Indian subsidiary in Hyderabad is a good choice. Because you can gain extensive exposure to the Indian market and access a larger pool of talent. A huge number of experienced specialists, government support for business-friendly regulations, and a competent workforce are just a few aspects that make it easier for Subsidiary Company Registration in Hyderabad.