forming a subsidiary company in India Archives

All you need to know about forming a subsidiary company in India Introduction India draws a lot of Foreign Direct Investment (FDI) and Private Equity money being one of the nations with the fastest growth rates in the world. India continues to be a desirable location for investment among foreign companies and foreign nationals due to its second-largest population in the world and its abundant talent pool of talented IT workers. This article focuses on things you should know before forming a subsidiary company in India. What is an Indian Subsidiary? A company whose interests are owned, or controlled by another company is said to be an Indian Subsidiary. The preference share capital and paid-up equity share capital of the subsidiary company can be used to determine the relationship between the holding company and subsidiary company. Another company may possess it entirely or in part. India is developing quickly to rank among the most desirable business destinations worldwide. A few measures to represent India as a business-friendly nation include offering investment possibilities, encouraging foreign corporations to work on domestic projects, and implementing pro-business regulations. Foreign businesses can establish subsidiaries in India and benefit from its favorable rules and regulations. By taking advantage of India's vast market size and the large population, the firms can build a variety of subsidiaries and launch investment opportunities. Things you should know before forming subsidiary company in India 1. Types of subsidiaries in India: In India, there are primarily two types of subsidiaries: Wholly-owned - In a wholly-owned subsidiary, the parent business owns all of the stock in the subsidiary. However, wholly-owned subsidiaries can only be established in industries that permit 100% Foreign Direct Investments (FDI). Subsidiary Company - Parent firm controls more than 50% of the shares of the subsidiary. It's important to get approval from the Reserve Bank of India, before establishing a subsidiary in India. 2. Characteristics of Indian Subsidiary Companies: The repatriation of dividend does not require prior clearance Indian subsidiary adhere to the Indian transfer pricing structure. Dividend distribution tax is nil, according to the Union Budget. 3. Advantages to register as an Indian Subsidiary: Below are the advantages of forming a subsidiary company in India-: An Indian Subsidiary company enjoys the benefit of Separate Legal Identity in the eyes of law. Indian subsidiary have a Management structure of its own, different from the parent company. Shareholders or the owners of a Company have a limited liability towards the company. In case of Indian Subsidiary, FDI is allowed 100% without any prior permission However it requires posts facto filing/intimation to the Reserve Bank of India. Parent company can provide a continuous inflow of funds by subscribing to new shares of subsidiary company and thus save it from cost of debt. In terms of taxation as well, the Indian subsidiary will have the same tax structure as a domestic company in India. 4. Documents required for Business registration as an Indian Subsidiary: Below are the documents required for business registration as an Indian Subsidiary-: Photograph of all the Directors and Shareholders. Apostille ID Proof of all the Directors (Passport, Driving License or Voter ID). Electricity Bill or any other utility bill for the address proof of the Registered Office. PAN Card of all the Indian Directors and Shareholders. A company must have a registered office in India. Bank Statement or electricity bill shall not be older than 2 months. The utility bill as address proof shall be submitted to ROC. Also, an NOC from the Landlord to use the office as a registered office of a company must be submitted. 5. Importance of forming an Indian Subsidiary: Indian subsidiary companies are permitted to purchase real estate in India because they are regarded as autonomous structures. India’s economy has grown to be the seventh-largest in the world and is on track to overtake China as the third-largest economy in the world. India has a young, productive population, making it simple to buildup a sizable customer base. The shareholders’ limited liability toward the company is the key benefit of a foreign company’s Indian subsidiary. Depending on the needs of the applicant, a subsidiary company in India maybe either a Private Limited Company or a Public Company. Conclusion It's challenging to establish a subsidiary in India. Your firm must find the resources like time and money to grow, while also becoming familiar with all applicable Indian laws. Another level of complexity is added by the fact that state and regional laws and regulations differ. Creating a subsidiary in India has many benefits as well. Subsidiary has limited responsibility from the main firm, and shareholders are limited by the amount they invest. The parent firm is safeguarded by this arrangement against any losses or prospective legal action. You can decide whether the subsidiary has a separate culture or set of workplace policies from the parent firm.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Things you should know before forming subsidiary company in India

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

All need to know about Trademark infringement

LLC vs. Corporation: Start your company in US

Duties of an Auditor in a Company

Secure Payment Modes

FSSAI Licence Modification
FSSAI License Renewal
Private Limited Company
US payroll services in India
UK Business Outsourcing Process in India
File CRF Form to change Master Data on MCA
Reply to Notice Under Section 148 of Income Tax Act
Reply to Notice u/s 143(2) of Income Tax Act for Scrutiny Assessment
Reply to Intimation Notice under section 245 of Incone Tax Act
Reply to Defective Notice u/s 139(9) of Income Tax Act
Reply to Income Tax Notice u/s 143(1)(A) for Prima Facie Adjustment
Reply to intimation notice of Section 143(1) of Income Tax Act
Reply to Income Tax Notice Under Section 133(6)
Corporate Legal Advice
LEI Code Registration
Employee Background Verification
US Business Solutions and Outsourcing Services in India
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
E-RCMC Registration under EPCES in India
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
ITIN Registration in the USA
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
File Form 10BD Online under Income Tax Act
Annual Filing For Trust in India
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
LLC Annual Compliances in Delaware, USA
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming, USA
Register Company in Florida, USA
Company Registration in Delaware
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FLA Return Filing Online to RBI in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
FCRA Registration Online in India
File Form CSR 1 online
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Surrender IEC License Online in India
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
Company Registration in India- Know how to open a Company in India
Creation of Charge
LLP Registration in India by an NRI
Company Registration in India by an NRI
Right Issue of shares / Right Offerings
Renewal of IEC License
Application for the Extension of Name Reservation
Digital Marketing Services
Company Annual Filings in XBRL filing mode in India
12AA & 12A Registration Process
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Strike Off Company
Payment of TDS return on purchase of property (form 26QB)
Business Advisory Services
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
File ROC Form DPT 3 Return of Deposits
Income Tax Returns Filing
Private Limited Company Annual Filing
MCA Companies Fresh Start Scheme
LLP Annual Filing
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
ISO Certification in India
Run your operations / company in India without any liabilities
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
Foreign Direct Investment through Automatic and Direct Route
A Quick guide to company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Logo Design Services
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
One Person Company (OPC) Registration in Mumbai
IEC Registration in Mumbai
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
MicroFinance Company registration
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
EPF Registration
PAN Application
Digital Signature
IEC Registration
TAN Application
DIN Application
GST Registration
Nidhi Company
Producer Company
Hindu Undivided Family (HUF), HUF Deed
Sole Proprietorship Firm Registration
Public Limited Company
E-Commerce Business
One Person Company (OPC)
Partnership
Indian Subsidiary
Non Profit Organization
GST Returns
CMA Report Preparation
E-Form Commencement of business certificate(form-20a)
Private Limited Company Registration
Startup Advisory Services
One Person Company (OPC)
Private Limited Company Registration
Income tax section 80g(5) registration
Company Registration Process in India for Foreigner- Know How to Open a Company in India
Secretarial Compliance Services
Search Report ROC
Revival of Struck Off Company
Trademark Watch Services
One Person Company (OPC)
Limited Liability Partnership
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
International Trademark Registration Under Madrid Protocol
Surrender of DIN
Trademark Registration Process
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Online LLP Registration and Complete Procedure
Aadhaar Udyog Online Registration
New Form INC-22A
FIND GST RATE, HSN CODE & SAC CODE
Company Registration in India
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Trademark Renewal
Trademark Opposition
Trademark Rectification
Trademark Withdrawal in India
Payroll Setup & Processing
ESI Returns
PF Returns
TDS Returns Revision
Removal of Charge
Modification of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Del Credere Agreement
Lease deed
TDS Returns
Strike Off OPC
Dissolution of Firms
Strike Off LLP
ESIC Registration
GST Modification
OPC Annual Filing
SSI/MSME/Udyog Aadhar Registration
Share Transfer & Transmission
Change in DIN
Add/Remove a Partner in LLP
LLP Name Change
Change in LLP Agreement
Increase in Authorized Capital
Change in Directorship
Patent Registration
Patent Search
Provisional Patent
Copyright Application
Trademark Assignment
Trademark Objections
Trademark Registration
Trademark Registration – copy
Limited Liability Partnership
Conversion into LLP