Indian Subsidiary Company

Indian Subsidiary Company - An Overview

An Indian Subsidiary Company is a company whose majority stake (more than 50%) is owned and controlled by a foreign company, referred to as the holding or parent company. The relationship is defined through ownership of preference and paid-up equity share capital. Subsidiary companies can be either wholly owned or partially owned by the parent company. This structure allows foreign businesses to establish their presence in India while enjoying limited liability and a separate legal identity.

Procedure OF - Indian Subsidiary Company

Fill the online application form
Verify all necessary documents
Apply for Digital Signature Certificate (DSC)
Get name approval from MCA through RUN or SPICe+
Submit incorporation documents to the Registrar of Companies (ROC)
Apply for PAN and TAN after incorporation
Open a bank account in India under the subsidiary’s name

Documents Required for Indian Subsidiary Company

From All Directors and Shareholders
Valid identity proof such as PAN, Passport, Voter ID, or Driving License
Latest utility bill (electricity, phone, etc.)
Passport-size photograph

For Registered Office in India
Rent agreement (if rented)
No-objection certificate (NOC) from the property owner

Additional Documents for Foreign Directors
Passport of the foreign director
Certificate of incorporation of the foreign holding company (duly notarized and apostilled)
Board resolution authorizing the setup of an Indian subsidiary

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FAQ'S

Frequently Asked Questions

Find answers to some of the most common questions about our services. If you don’t see what you’re looking for, feel free to reach out to us.

1. What is an Indian Subsidiary Company?

An Indian Subsidiary Company is a company in India whose majority shares (more than 50%) are held by a foreign company. It operates as a Private Limited Company and is governed under the Companies Act, 2013.

2. Can a foreign company own 100% shares in an Indian Subsidiary?

Yes, in most sectors under the automatic route, 100% Foreign Direct Investment (FDI) is allowed, enabling foreign companies to own 100% of an Indian subsidiary without prior government approval.

3. What are the key documents required to register an Indian Subsidiary?

Key documents include: Passport & address proof of foreign directors Certificate of Incorporation and Board Resolution of the parent company PAN card and ID/address proof of Indian director Proof of registered office address in India (rent agreement/utility bill & NOC)

4. Is it mandatory to appoint an Indian director in the subsidiary?

Yes, as per Indian law, every company must have at least one director who is a resident in India, i.e., has stayed in India for a minimum of 120 days in the previous financial year.