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Indian Subsidiary Company Registration for Foreigners Indian Subsidiary Setup

Indian Subsidiary Company Registration for Foreigners

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Introduction of Indian Subsidiary Setup

Many foreign companies wish to start their operations in India and capture a rapidly growing market. The Companies Act 2013, provides a mechanism by which foreign companies can open companies in India, under the FDI Policy by investing in equity. These companies are called the Indian Subsidiary Company.

An Indian Subsidiary Company is a Company that may be incorporated under the Companies Act, 2013 which is controlled (over 50%) or owned by another Company which is a Parent Company incorporated abroad.

The company subsidiary is called a sister company and the controlling company is called a parent company or holding company. The parent company has the right to control the subsidiary partly or wholly.

The Companies Act 2013 regulates the registration process for the Indian Subsidiary Company. According to the Companies Act of 2013, a subsidiary company may be defined as a company in which the foreign business body or parent body has a minimum of 50% of the total share capital. The parent company participates in the subsidiary. The company under which it operates is required to comply with the national laws it plans to establish or has already established. Therefore, if a subsidiary company is established in India the company must follow the law applicable in India.

Features of Indian Subsidiary Companies

Prior authorization is not required for return benefits.
Indian subsidiary companies follow the Indian transfer price framework.
The union's 2020 budget says taxes on dividend distribution are non-existent.

Advantages of Indian Subsidiary Company Registration

Features of Indian Subsidiary Companies
Distinct legal identity

Once a business is registered it is born legally which means it is separated from its owners, Directors, Managers, shareholders, and employees, etc. The dissolution of a Parent Company does not affect the life of the Company under it.

Advantages of Indian Subsidiary Setup
Limited Liability

Members' debt is limited by the amount they have invested in the Company and therefore, they are not liable in any way and are a legal entity which means that they are different from their Members and directors.

Documents Required for Indian Subsidiary Company Registration for Foreigners
No minimum capital needed

To consolidate a Foreign Company no minimum capital is required and the capital structure can be adjusted according to the Company's growth requirements over time.

Process of Indian Subsidiary Company Registration for Foreigners
Increased security

Employees prefer to join the Private Limited Company and retailers feel safer in providing credit, confidence, and trust of customers grows which leads to increased investment from investors.

FAQs on Indian Subsidiary Setup
Easy access to funds

The scope of growth is high due to the easy availability of funds from venture capitalists, financial institutions, angelic investors who provide more transparency.

How to Set Up a Subsidiary in India
Increased FDI

Attract Foreign Direct Investment in India following the guidelines issued to the government with or without the approval and consideration of the sector limit.

Minimum requirements

Two Directors required as minimum and fifteen as maximum

Minimum of two shareholders

At least one Director will be an Indian citizen

Digital Signatures for Subscribers and Directors

The parent company must own more than 50% of the shares.

Director Identification number if available

Checklist of Documents Required

PAN Card

Member and directors of the Company proposed Passport in case of foreign nationals

Proof of the identity

of the Member and directors of the proposed Company; (Driver's License/Voter ID/Passport/Aadhar)

Address Proof

of Members and Directors (Service Bill/Telephone Bill/ Mobile Bill/Bank statement not exceeding two months)

Recent passport size photograph of the Members and Directors
Proof of Business Address Location of owned property

(Copy of Registry and Recent Electricity or Water Bill)

Proof of Business Address Leased/rented

Lease Agreement, NOC from Owner, Recent Government Electricity Bill or Water Bill)

Note: - In the event of an NRI or Foreign nationals documents of Directors and Subscribers shall be in writing or sent by an apostle.

Documents Required for Completing FCGPR

PAN card of persons to be designated as Authorized persons on behalf of the business

Board resolution of the organization to authorize any person

Foreign Inward Remittance Certificate (FIRC)

KYC for the individual residents outside India

Copy of FIPB permit (if applicable)

Copy of Board Resolution on securities

Process for Indian Subsidiary Company Registration for Foreigners

Complete the Application Form

You are requested to first complete the simple questionnaire provided by our expert team.

Processing Documents

In the second step, we will need the documents as per the questionnaire completed by you so that we can organize them as required and for processing.

DSC application

First of all the DSC (Digital Signature Certificate that includes E-signatures) needs to be prepared. This step can be ignored if it is already prepared. It will take about 1-2 days.

Availability of Name

Now the availability of the name is checked. The name must be different and should not be the same as the name of any other registered organization. It requires minimum 1-2 days.

Company incorporation e-filing

Once the name is approved, an online application is required to be submitted via SPICE+ along with the required documentation as received from the ROC client. MOA and AOA will be filed online. This process also takes about 2-3 days.

Obtain an Incorporation Certificate

Once the Company is registered we will share all documents such as Certificate of Incorporation, MOA, AOA, and Digital Signature.

FCGPR filing

The final step is to enter FCGPR within 30 days of receiving the registration fee in the current company account.

Annual compliances

Companies Act, 2013
Income Tax Act, 1961
Guidelines of FEMA
MCA Guidelines
Annual return with Registrar of Company
Filing with RBI
Income Tax Return
Filing with SEBI

How Paravue Advisors help you to achieve your dream startup?

We at Paravue Advisors guarantee a high level of satisfaction and timely delivery of your firm registration with better response to government needs through our professionals. You can contact our team on 099504-51000 or send an email to for Indian Subsidiary Company Registration for Foreigners.

Why you should choose Paravue Advisors for your assistance?

Expertise guidance

We will help you from picking up a suitable registration to getting your registration certificate. Our experts give you expert guidance on many of the processes involved in registering your business as a sole proprietorship, as well as service tax registration, sales tax, import/export code, and professional tax.

Filing Application

The professionals to assist you in the application are well-executed and can manage native registrations.

Registration Receipt

Our team will provide full assistance with the registration process. This can vary between 5 and 15 days, depending on the work done by the authorities involved.

FAQs on Indian Subsidiary Setup

Yes. An Indian company must have at least two directors (one of whom must be an Indian Resident director). You can have more than 1 person as a Foreign Director on the Indian Company board.

Every Company with the foreign investment is required to report to the RBI (Reserve Bank of India) about the investment. This process needs to be done by completing the FC-GPR form. All shareholders (NRI’s, Foreigners, and foreign organizations) who invest in a certain Indian business, which is considered FDI. A CA certificate also needs to be filed with the FC-GPR form.

Yes, it can be created under the Companies Act, 2013 where the Parent Company can form a 100% WOS (Wholly Owned Subsidiary) and can hold shares on behalf of the Authorized Representative and nominee.

According to the Companies Act, 2013 it is mandatory to have one person or firm as the Company Auditor. The first auditor will be appointed within 30 days from the date of Establishment by the Board of Directors.

The company is required to submit within 30 days of its FCGPR form and the required RBI documents to the FIRM’s portal at

It is documentary proof that the Company is registered and has its unique ID number such as the Company Identity Number.

The company is required to open a bank account and pay the registration fee as agreed upon between the shareholders and submit the form to start the business.

Documents are required to be apostille if a foreign country is not present in India. If it is present in India with a business visa then it is not required.

Yes, you can register the Company in a commercial or residential area by providing documentation as specified. There is no department limit.

No, according to the Act, a director must be of at least 18 years of age.