Indian

Subsidiary of a Foreign Company

Start your Indian Subsidiary Registration online at just just 29,999/- only.

EbizFiling assists foreign companies in setting up their Indian subsidiaries with complete legal compliance.

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Indian Subsidiary of Foreign Company 

About Our Service  

What is an Indian Subsidiary of a Foreign Company?  

An Indian Subsidiary of a Foreign Company is a company incorporated in India where a foreign corporate body owns at least 50% of the total share capital. It operates under the Companies Act, 2013, and is treated as a private limited company for legal purposes. This allows foreign investors to establish a business presence in India while maintaining control over operations and decision-making. Setting up a subsidiary is one of the most preferred entry routes for foreign companies, including U.S. subsidiaries, to expand into the Indian market legally and efficiently.

Seamless-Setup-of-Indian-Subsidiary-for-Foreign-Investors (1)

Who Needs to Register an Indian Subsidiary?  

  • Foreign companies are planning to expand their business operations in India.

  • Global corporations wanting a permanent legal presence in the Indian market.

  • Businesses seeking to benefit from India’s growing manufacturing and service sectors.

  • U.S. and European companies aiming to set up a subsidiary for exports, IT services, or consulting.

  • Foreign entities looking to hire local employees and open Indian bank accounts.

  • Startups and MNCs wanting to own intellectual property or assets under Indian jurisdiction.

 When Should You Set Up an Indian Subsidiary?  

  • When entering the Indian market for trading, service, or manufacturing purposes.

  • Before commencing operations or signing local contracts in India.

  • When seeking foreign direct investment (FDI) approval under automatic or government routes.

  • When hiring employees or opening offices in India under a separate legal entity.

  • When applying for GST, Import Export Code (IEC), or local licenses.

  • When expanding an existing foreign company or U.S. subsidiary to Indian operations.

Why Choose EbizFiling?  

EbizFiling simplifies the process of registering an Indian subsidiary of a foreign company through expert documentation, compliance management, and MCA filing. Our professionals handle every step — from drafting incorporation documents to obtaining government approvals. We also help with PAN, TAN, GST, and FDI compliance to ensure your subsidiary is fully operational and legally compliant.
You can reach our team at 09643203209 or email info@ebizfiling.com for a free consultation and step-by-step guidance.

Charges for Indian Subsidiary of Foreign Company 

Choose Your Package

ESSENTIAL

29999/-

(All Inclusive)

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • Name Approval Application
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation
  • Drafting Of Memorandum
  • Drafting Of Bye-Laws
  • E-PAN
  • E-TAN
  • 25 Copies of MOA
  • 25 Copies Of AOA
  • 10 Copies of Share Certificate
  • Company Seal
  • GST Registration
  • E-form commencement of business certificate (form - 20A)

ENHANCED

58999/-

(All Inclusive)

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • Name Approval Application
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation
  • Drafting Of Memorandum
  • Drafting Of Bye-Laws
  • PAN
  • TAN
  • 25 Copies of MOA
  • 25 Copies Of AOA
  • 10 Copies of Share Certificate
  • Company Seal
  • E-form commencement of business certificate (form - 20A)
  • Filing of FC-GPR
  • Issue of CA Certificate
  • Issue of CS Certificate
  • GST Registration
  • Legal Entity Identifier Code (Excluding Government Fees)

ULTIMATE

80999/-

(All Inclusive)

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • Name Approval Application
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation
  • Drafting Of Memorandum
  • Drafting Of Bye-Laws
  • PAN
  • TAN
  • 25 Copies of MOA
  • 25 Copies Of AOA
  • 10 Copies of Share Certificate
  • Company Seal
  • E-form commencement of business certificate (form - 20A)
  • Filing of FC-GPR
  • Issue of CA Certificate
  • Issue of CS Certificate
  • GST Registration
  • SSI/MSME Registration
  • 1 year subscription of Zohobooks
  • Start Up Recognition
  • Legal Entity Identifier Code (Excluding Government Fees)

 Benefits  of Indian Subsidiary Important of a Foreign Company

Legal Recognition

The Indian subsidiary becomes a separate legal entity under Indian law, ensuring limited liability and full legal protection.

Full Ownership

Foreign companies can hold up to 100% shares, maintaining complete control and flexibility over Indian operations.

Tax Advantages

The subsidiary benefits from corporate tax deductions, treaty reliefs, and incentives under India’s FDI-friendly tax regime.

Market Expansion

Establishing a subsidiary allows global companies to enter and grow in India’s large and diverse consumer market.

Operational Freedom

The Indian subsidiary can hire staff, open bank accounts, and conduct local transactions independently.

Brand Credibility

Registration as an Indian company builds customer trust and enhances the foreign brand’s reputation in India.

Investment Access

The subsidiary can attract local investors, funding, and participate in government-led growth programs.

Compliance Ease

EbizFiling ensures smooth FDI reporting, MCA filings, and adherence to Indian regulatory requirements.

Documents Required for an Indian Subsidiary of a Foreign Company

Documents for Indian Subsidiary of a Foreign Company

  • Passport and address proof of foreign directors (notarized and apostilled)

  • PAN Card and Aadhaar of Indian resident directors

  • Passport-size photographs of all directors

  • Proof of registered office address (electricity bill, rent agreement, or ownership document)

  • Board Resolution from the parent company authorizing incorporation in India

  • Memorandum of Association (MOA) and Articles of Association (AOA)

  • Director Identification Number (DIN) and Digital Signature Certificate (DSC)

  • Proof of shareholding and capital contribution details

  • Consent and declaration forms (DIR-2, INC-9)

Stepwise Process of Indian Subsidiary of a Foreign Company

1

Obtain DSC & DIN

2

Reserve Company Name

3

Draft MOA & AOA

4

File SPICe+ Incorporation

5

Get Certificate of Incorporation

 What Does EbizFiling Do for an Indian Subsidiary of a Foreign Company?

  • EbizFiling helps foreign companies choose the correct structure for setting up their Indian subsidiary.

  • Our experts prepare incorporation documents, MOA, AOA, and declarations as per MCA and RBI norms.

  • We assist in obtaining DIN, DSC, PAN, TAN, and GST registration for the new subsidiary.

  • The team files incorporation forms, handles RBI reporting, and ensures FDI compliance.

  • A dedicated compliance manager provides updates throughout the registration process.

  • We also assist with post-registration services such as accounting, annual filings, and legal support.

FAQs

FAQs on Indian Subsidiary of a Foreign Company  

Get answers to all your queries

  • What is an Indian Subsidiary of a Foreign Company?

    It is a company incorporated in India where a foreign parent company owns more than 50% of its share capital, giving it controlling interest. It operates as a separate legal entity under the Companies Act, 2013.

  • Can a foreign company own 100% of an Indian subsidiary?

    Yes, in most sectors under the automatic route, 100% foreign ownership is allowed without prior government approval. Restricted sectors may require approval from the Reserve Bank of India or DPIIT.

  • What are the key requirements for forming an Indian subsidiary?

    You need at least two directors (one must be a resident of India), two shareholders, and a registered office address in India. Additionally, all foreign documents must be notarized and apostilled.

  • How long does it take to register an Indian subsidiary?

    It generally takes 10–15 working days after document submission and digital verification. The time may vary depending on government approvals and document accuracy.

  • Is FDI approval required for setting up a subsidiary?

    For most industries, FDI comes under the automatic route, meaning no prior approval is needed. For restricted sectors, approval from relevant authorities is mandatory.

  • What are the benefits of incorporating an Indian subsidiary?

    It provides legal status, tax benefits, market entry, and operational flexibility in India. It also enhances brand recognition and ensures compliance with Indian regulations.

  • Can a U.S. company set up a subsidiary in India?

    Yes, a U.S. company can easily establish an Indian subsidiary by complying with RBI and MCA guidelines. EbizFiling helps in managing documentation and legal procedures smoothly.

  • What is the minimum capital required for registration?

    There is no minimum paid-up capital requirement under the Companies Act, 2013. You can start with any amount suitable for your business plan.

  • Is it necessary to have an Indian director?

    Yes, at least one director must be a resident of India who has stayed for 182 days or more in the previous year. This is a mandatory requirement for incorporation.

  • What are the tax implications for an Indian subsidiary?

    An Indian subsidiary is taxed as a domestic company in India, subject to applicable corporate tax rates. It must also comply with transfer pricing and income tax reporting norms.

  • Can profits be repatriated to the parent company?

    Yes, profits can be repatriated after paying applicable taxes in India and meeting FEMA guidelines. This includes dividends, royalties, or technical fees.

  • What licenses are required after incorporation?

    Depending on the business type, you may need GST registration, Import Export Code, and industry-specific licenses. EbizFiling can help secure all required registrations.

  • Can an Indian subsidiary hold property in India?

    Yes, an Indian subsidiary can purchase, own, or lease property in India under its registered name. This includes office premises and operational assets.

  • Can a foreign director sign digital documents?

    Yes, with a valid Digital Signature Certificate (DSC), foreign directors can digitally sign incorporation forms. EbizFiling assists in obtaining DSC for international directors.

  • What are the post-registration compliances for subsidiaries?

    Subsidiaries must file annual returns, maintain financial records, and report foreign shareholding to RBI. Compliance is governed by FEMA and the Companies Act.

  • Can the subsidiary be converted into another entity type?

    Yes, it can be converted into a joint venture or wholly owned subsidiary, depending on the shareholding structure. Necessary filings must be made with MCA and RBI.

  • What is the role of the parent company in management?

    The parent company holds ownership control but the Indian board manages day-to-day operations. Major decisions are governed by the board resolutions and shareholder agreements.

  • Does the subsidiary require a physical office in India?

    Yes, a registered office address is mandatory for official correspondence and government notices. Virtual addresses can be used temporarily during setup.

  • Is the subsidiary treated as an Indian company?

    Yes, it is treated as an Indian private limited company for taxation, compliance, and legal purposes. However, ownership rests with the foreign parent company.

  • How can EbizFiling help with subsidiary registration?

    EbizFiling provides complete support from documentation, MCA filings, and FDI compliance to post-incorporation services. We ensure a fast, transparent, and legally compliant registration process.

Reviews

  • Ebizfiling

    Akanksha Kakwani

    19 Nov 2021

    It was a great experience with Anitha from ebizfiling who guided me for doing the IEC renewal.

  • Client Review, Ebizfiling

    Ajit Mehra

    29 Jul 2018

    I had already missed the ITR date until I came across their Facebook post which reminded me of the same. I simply contacted them and they did it all.

  • Client Review, Ebizfiling

    Ajit Gopal Pandit

    20 Feb 2018

    Very efficient service to get yourself registered with your Business. Had a very good experience.

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