Indian Company Registration for Foreigners, indian Subsidiary Registration

Indian subsidiary

has a place of business in India whether by itself or through an agent, physically or through electronic mode; and (b) conducts any business activity in India in any other manner.

About Indian subsidiary

In India, there is a huge of interest of foreign Companies such as relatively lower wages, special investment privileges, tax exemptions, etc. Indian subsidiary is a Company over which a foreign Company has control. A foreign Company and foreign national can invest and acquire the shares of Indian Company through foreign direct investment in India (FDI).

A foreign Company can acquire and invest in the equity share of an Indian Company by two routes, First is Automatic Route and Second is Approval Route. In the Automatic Route no requirement to take any prior approval from regulatory authority for investment in equity shares of an Indian Company, only post intimation and document file to the reserve bank of India (RBI). 100% Foreign Direct Investment is allowed under the automatic route in most activities and sectors in India. And where the automatic route is not applied then investment and acquisition of share can be done with the approval route that means government approval is required.

NEEDS of Indian subsidiary

Minimum numbers of the director are 2.

Minimum paid up capital is Rs. 100000.

Minimum and maximum number of shareholder is 2 and 200, respectively.

One of the director must be Indian resident. Structure

Advantages of a Indian subsidiary

Separate legal entity

Accordance to the Companies Act the companies is legal entity. The members of a company have no liability to the creditors of a company for companies’ debts. The death, bankruptcy or withdrawal of capital by one member does not affect the company's ability to trade.

Limited liability of directors

The liability of the directors is only up to the amount that they invested in the company. Limited liability protects the personal wealth of a private company's directors, and does not put personal assets at risk

Easy to raise funds and Easy to sell

The company enjoys wide options to raise funds through bank loans, angel investors, venture capital fund in comparison to LLP and OPCs.The disposal of the whole or part of the business is easily arranged.

Taxation

There are many allowances and tax deductible costs that can be offset against the profits of a company and the tax would be paid after deducting many costs incurred by director. In addition to that the current level of Corporation Tax is lower than income tax rates.

Easy to Transfer of company

Private company can easily transfer the entire and part of share holding to the any person as an ongoing concern. These changes of ownership, saves the time and money.

Business transaction with relatives

According to section 188 of Companies Act 2013 the private company can enter into the related party transaction with their related firms and company. No separate compliances are to be required to full fill.

FREQUENTLY ASKED QUESTIONS (FAQS)

Foreign Company means any Company or body corporate incorporated outside India which—

  • (a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
  • (b) conducts any business activity in India in any other manner.
“Subsidiary Company” or “subsidiary”, means a Company in which the holding Company—
  • (i) Controls the composition of the Board of Directors; or
  • (ii) Exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.
Yes, a foreign Company and foreigner can invest and acquire the equity share of an Indian Company through FDI that means foreign direct investment and should complied FDI policy.
A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, a citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route/approval route. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route/approval route, in sectors/activities other than defence, space and atomic energy and sectors/activities prohibited for foreign investment.
In automatic route no prior approval required only intimation with the Reserve Bank of India (RBI) and filing of prescribed documents. But in the approval route it required to take permission from government and take note of FDI policy.
Yes in India 100% investment is allowed through automatic route subject to the FDI policy.

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Basic
Rs.41000/-
all inclusive fees

Indian subsidiary Registration with DSC, DIN, Name Approval, Incorporation Fee, PAN, TAN, Share Certificates, Company Kit and Bank A/c opening Assistance Services

Standard
Rs.60000/-
all inclusive fees

Indian subsidiary Registration with DSC, DIN, Name Approval, Incorporation Fee, PAN, TAN, Share Certificates, Company Kit, 1 Year ROC Secretarial Compliance Fillings

Premium
Rs.90000/-
all inclusive fees

Indian subsidiary Registration with DSC, DIN, Name Approval, Incorporation Fee, PAN, TAN, Share Certificates, Company Kit, 1 Year ROC Secretarial Compliance Fillings and Auditor Appointment and Tax Fillings.

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