WHAT IS FOREIGN SUBSIDIARY COMPANY REGISTRATION?

A subsidiary is a company with voting stock (that is more than 50%) controlled by another company, usually referred to as the parent company or the holding company. In cases where a parent company owns a foreign subsidiary, the subsidiary must follow the laws of the country where it is incorporated and operates. Hence, if a foreign subsidiary is incorporated in India, then it has to follow the applicable laws in India.

Foreign Subsidiary can be formed in two ways as follows:

  • Foreign Subsidiary: A company who’s more than 50 % of shares is held and controlled by foreign entity. Hence, if a foreign subsidiary is incorporated in India, then it has to follow the applicable laws in India.
  • Wholly owned Subsidiary: A company who’s all i.e. 100 % of shares is held and controlled by foreign entity. It is also formed and run by laws applicable in India.

Foreign Entities Can Setup Business In India By following ways:

  • Wholly Owned Subsidiary Company
  • Liaison Office
  • Branch Office
  • Project Office
  • Joint Venture
  • Limited Liability Partnership

A foreign nation (other than Entity of Pakistan and Bangladesh) can invest and start a business in India subject to FDI Policy. For investment in India, in the form of equity shares is monitored by the Reserve bank of India.

There are two categories of making investment in India either though automatic route or approval route. Automatic route means where no prior regulatory approval is required for investment in the Indian company. Investment in activities/industries where an automatic route is not permissible can be made with the approval of Reserve Bank of India.

FOREIGN SUBSIDIARY COMPANY REGISTRATION PROCESS IN INDIA

STEP 1: DIGITAL SIGNATURE CERTIFICATE (DSC)

All Proposed directors/promoters of the company should have a digital signature and digital signature will be used to file the incorporation form, ROC compliance forms, and Income Tax returns. There is no need of a physical signature to register a company.

STEP 2: DIRECTOR IDENTIFICATION NUMBER (DIN)

As soon as Digital signature is approved, the next step is to apply for DIN (Director Identification Number) by all the proposed directors in the company. DIN application will be certified by the professional; thereafter you will get an approval email from the Registrar of companies that now you are eligible to become director in a company. It takes one working day to approve DIN.

STEP 3: COMPANY NAME APPROVAL

For name availability, we have to make sure that there is no trademark on the same name and no company is already registered on the proposed name. Thereafter we will file a Name approval application to ROC on your behalf.

STEP 4: FINAL INCORPORATION AND CIN

After Name approval from the Registrar of Companies, we will file a final incorporation form with all supporting documents like registered address proof, Declaration from all the directors. We will certify all the required documents of the proposed company by the Practicing Professional.

STEP 5: PAN

Then we will file PAN application which will take around one working day.

As per the recent amendment, a new form has been introduced named as AGILE (INC-35). This form is accompanied with the SPICe form.

Submission of this form will provide registration of EPFO (Employees Provident Fund Organization), ESIC (Employee State Insurance Corporation) and GST for the company.

STEP 6: OPEN YOUR BANK ACCOUNT AND START BUSINESS

We will assist you in bank account opening and start business.

STEP 7: RBI COMPLIANCES FOR FDI IN INDIA

A newly incorporated wholly owned subsidiary company in India has to comply with the RBI compliances by filing necessary forms. Compliances can be done simultaneously with the business.

STEP 8: NECESSARY REGISTRATIONS

Wholly Owned Subsidiary Company can apply for other mandatory registrations such as GST registration, in case of import export business then it is required to apply for IEC registration in India. In case there are employees more than 10 or 20 then they would have to apply for ESI or PF registration.

BENEFITS

1: FOREIGN DIRECT INVESTMENT IN INDIA

100% Foreign Direct Investment (FDI) is allowed in several business activities/industries without any prior approval. Foreign direct investment is not allowed in Proprietorship or Partnership; LLP requires prior Government approval.

2: SCOPE OF EXPANSION

Is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability, The private limited offer more transparency in the company.

3: LIMITED LIABILITY

The liability of each member of the company is limited. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. The personal, individual assets of the shareholders are not at risk.

4: TAX BENEFIT

In comparison to foreign company it is taxed at lower rate of 30% whereas foreign company is taxed at 40%.

Get a free consultation for Foreign Subsidiary Company Registration by scheduling an appointment with Legal Time.

WHY CHOOSE US

1: STARTUP'S FIRST CHOICE

We ensure startups to focus on their project and leave all the legalities and documentations to us. From our technology driven platform and on time delivery startups prefer us to do Company registration.

 

2. TECHNOLOGY DRIVEN PLATFORM

100% Technology driven platform to speed up your company registration process and make your life easy

3. BEST PRICING

 

4. 100% ONLINE SERVICE

 

5. EXPERT PROFESSIONALS

 

3. BEST PRICING

We understand the value of money for startups. We offer complete transparency and affordable cost to startups.

4. 100% ONLINE SERVICE

 

5. EXPERT PROFESSIONALS

 

4. 100% ONLINE SERVICE

Fully online service so that you can start and complete the process without running around from the comfort of your home or office.

 

5. EXPERT PROFESSIONALS

At Legal Time, we work only with experienced Chartered Accountants & Company Secretaries to handle your company registration.

REQUIREMENTS

MINIMUM THREE DIRECTORS

MINIMUM SEVEN SHAREHOLDERS

AT LEAST ONE DIRECTOR SHOULD BE RESIDENT

NO CAPITAL REQUIREMENT

DOCUMENTS REQUIRED

PAN CARD

Pan Card of Shareholders & Directors

Foreign Directors must provide a valid Passport notarized or apostilled

PHOTOGRAPH

Latest Passport size photograph of Shareholders & Directors.

IDENTITY PROOF

Aadhar Card/ Voter ID/Passport/ Driving Licence of Shareholders & Directors.

ADDRESS PROOF

Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.

FOR REGISTERED OFFICE

Rent agreement

Utility bills-telephone, electricity, and municipal (Not older than 2 Months)

NOC From Owner.

POST COMPANY REGISTRATION REQUIREMENTS?

Once the Company registration is completed, you have to take the necessary steps in order to make a strong presence in the industry.

Remittance in India

Subscription Money remittance in India within the period of 2 months of incorporation from the foreign country bank account to the bank account in India.

Advance Reportin

Filing of Advance Reporting form along with KYC & FIRC with the RBI within the period of 30 days of receipt of funds.

Issuance of share certificates

Get a free consultation for Foreign Subsidiary Company Registration by scheduling an appointment with Legal Time.

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