Indian Subsidiary Company Registration
As per the Companies Act 2013, an Indian subsidiary company is defined as a company in which a foreign corporate body or parent body has a minimum of 50% of the entire share capital. The parent body of the company can have a grip or an eye over a subsidiary company and it is mandatory to undergo Indian Subsidiary Company Registration to follow the rules of the laws of the Indian Government.
Benefits of Indian Subsidiary Company Registration
Brings Foreign Direct Investment
The Indian government has approved 100% involvement of FDI just in case of fast-growing business industries; that's to mention, FDI is permitted 100% with none foregoing approval. Although if you are a Partnership firm or LLP or Proprietorship then you may need beforehand approval from the government for FDI.
Limited Liability
Directors and members of the company have limited liability. They are stringently limited to their company’s share. Limited liability trait protects the Director or member of the company in the time of any loss or financial distress bore by the company. Personal assets of Directors and members won't be in danger thanks to the loss suffered by the corporate.
Perpetual Succession
Perpetual succession means regardless of what happens to the members or directors of the corporate, the corporate will still exist. Insolvency, change in members, death, transfer, etc will not have any effect on the existence of the company.
Scope Of Expansion
An Indian subsidiary enjoys all the privileges of a personal Ltd. . The growth and expansion of business are easy because it raises capital from financial institutions, venture capitalist, and the investor.
Borrow Funds
A fully-owned subsidiary company in India has the benefit of borrowing funds from financial institutions in the form of loans.
Sue And Sued
Indian subsidiary company acts as a legal person; it can sue and can be sued.
Obtain Property In India
The foreign subsidiary company works on an independent structure which gives them the authority to buy properties in India.
Documents Required for Indian Subsidiary Company Registration
• Indian National
• PAN Card information
• Address Proof
• Identity Proof like Aadhaar Card, driver's license, Voter Id
• Foreign National
• Passport
• Address Proof (Indian Consulate must certify the document)
• Identity Proof (Indian Consulate must certify the document)
• Other Crucial Documents
• Directors Identification Number (DIN)
• Digital Signature Certificate (DSC)
• Memorandum of Association (MOA) and Article of Association (AOA)
• No Objection Certificate from the person who owns the property or business place
• Certificate of Incorporation granted by the foreign government
• Residential Proof
Procedure for Incorporating an Indian subsidiary registration
1. Consider the name
While incorporating an Indian subsidiary, the wants of the SPICe+ form need to comply. The company has to choose a unique name and the same to be reserved for a specific time. The title should be unique and suits the provisions associated with the property Law force in India.
2. Apply for DSC and DIN
The DIN is issued by the regulatory agency for the appointment of directors. In addition to the present, the entity must also apply for the Digital Signature Certificate. Documents can be electronically signed and sent online.
3. Apply for the PAN and TAN number
After applying for the DSC AND DIN, it's necessary to use the PAN and TAN. This is a mandatory requirement.
4. Open a bank account for the Subsidiary
An Indian Subsidiary Company has to open a Bank account. This is mandatory because the subsidiary will need to keep it up on behalf of the Subsidiary.
5.GST Number
A GST number will be provided to the company. It is mandatory for all the businesses established in India to use for GST registration.
6.Start Operations
After the completion of the procedure mentioned above, the corporate can start completing business operations.
