Indian Subsidiary

India is one of the fastest-growing economies in the world and a preferred destination for foreign investors, NRIs, foreign nationals, and overseas companies looking to establish and expand their business operations.

Foreign entities can establish their presence in India by incorporating an Indian Subsidiary Company under the Companies Act, 2013. Most foreign businesses prefer setting up a Private Limited Company due to its flexibility and compliance benefits.

A subsidiary company in India can operate as a joint venture or wholly owned subsidiary depending on the investment structure and applicable Foreign Direct Investment (FDI) rules.

Business Structures Available

Features of Indian Subsidiary

• Regulated under the Companies Act, 2013.
• Eligible for manufacturing, trading, and service activities.
• 100% FDI permitted in many sectors under automatic route.
• Treated as a domestic company under Indian tax laws.
• Funding possible through share capital and loans.
• Separate legal identity with perpetual succession.

Minimum Requirements

• Minimum two Directors.
• At least one Director must be an Indian Resident.
• Minimum two Shareholders.
• Minimum paid-up capital of ₹1 lakh.
• Digital Signature Certificate (DSC) and DIN required.

Documents Required

• Passport copy of foreign directors/shareholders.
• PAN Card for Indian directors.
• Address proof and bank statements.
• Passport size photographs.
• Board Resolution from parent company.
• Power of Attorney documents.
• Certificate of Incorporation of parent company.
• MOA & AOA of proposed Indian company.
• Registered office proof and NOC.

Incorporation Procedure

• Obtain Digital Signature Certificate (DSC).
• Apply for Director Identification Number (DIN).
• Reserve company name through ROC.
• Prepare MOA and AOA.
• File incorporation forms with Registrar of Companies.
• Submit foreign company approvals and resolutions.
• Verification and approval by ROC.
• Receive Certificate of Incorporation.
• Apply for PAN, TAN, and open bank account.

Benefits of Indian Subsidiary

• Access to the rapidly growing Indian market.
• Limited liability protection for shareholders.
• Separate legal entity status.
• Eligible for government incentives and tax benefits.
• Enhanced credibility among Indian customers and partners.
• Ability to raise investments and business funding.