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Subsidiary Registration in India: Navigating the Legal Landscape (Karam Pura, New Delhi, Delhi, 110015)
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Understanding these requirements before starting Subsidiary Registration in India can help businesses avoid unnecessary delays and compliance problems.
What Is an Indian Subsidiary?
An Indian subsidiary is a company incorporated in India that is controlled or owned by another company, including a foreign parent company. Depending on the business structure and applicable FDI rules, a foreign company may establish a Wholly Owned Subsidiary in India or another subsidiary structure.
A subsidiary incorporated in India is governed by Indian corporate laws and operates as a separate legal entity from its parent company.
Key Legal Requirements for Subsidiary Registration
The first step in Subsidiary Company Registration in India is selecting an appropriate business structure and checking whether foreign investment is permitted in the proposed sector.
Foreign investors must review the applicable FDI policy, sectoral caps, entry route and other conditions. DPIIT confirms that foreign investors can establish business operations through structures such as joint ventures and wholly owned subsidiaries, subject to applicable FDI and FEMA rules.
The company must then be incorporated under the Companies Act, 2013 through the MCA process. Directors also need the appropriate identification and digital signing requirements for incorporation and subsequent filings.
Documents Required
Foreign companies generally need to prepare corporate and identity documents of the parent company and proposed directors or shareholders. Depending on the circumstances, documents issued outside India may require notarisation, legalisation or apostille and appropriate certification.
Common requirements can include:
Parent company's incorporation documents
Constitutional documents
Board resolution approving the Indian investment
Identity and address proof of directors
Registered office proof in India
Digital Signature Certificates
Director Identification Numbers
The exact documentation can vary according to the ownership structure, country of incorporation and proposed business activity.
FDI and FEMA Compliance
FDI in India is an important part of the incorporation process for a foreign-owned subsidiary. The permitted investment route depends on the sector and applicable conditions.
After investment, the Indian company may also have reporting and compliance responsibilities under FEMA. Therefore, FEMA Compliance should be planned from the beginning rather than treated as a post-incorporation requirement.
Tax and Ongoing Compliance
After incorporation, an Indian Subsidiary Company may need registrations such as PAN, TAN and GST, depending on its activities and applicable tax rules. It must also maintain proper accounting records and complete applicable tax, MCA and statutory filings.
Subsidiary Company Compliance in India can include annual financial reporting, income-tax compliance, GST filings where applicable, maintenance of statutory records and other regulatory requirements.
How VenturEasy Can Help
Setting up an Indian subsidiary requires coordination between incorporation, foreign investment, tax and ongoing compliance requirements. VenturEasy can help foreign companies manage the process from business structure selection and incorporation to FDI, FEMA Compliance, tax registrations, accounting and ongoing statutory requirements.
Planning to establish your business in India? Contact VenturEasy today for professional support with subsidiary registration and ongoing compliance.
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