Setting up Subsidiary Company in India

Setting up Subsidiary Company in India

Any foreign company can incorporate a wholly owned subsidiary company in India. In India, private limited companies are a most popular form of business structure and therefore the most obvious choice of foreign companies. In an Indian private limited company, there can two shareholders and two directors and at least one Director should be resident in India.

100% shareholding of an Indian private limited company can be owned by its foreign holding company and the requirement of having at least two shareholders can be fulfilled by giving one share to the nominee of a foreign company. Wholly owned subsidiary company incorporation process is fast and hassle-free and can be completed online. That means the promoters or their nominee doesn’t have to necessarily fly to India to incorporate a wholly owned subsidiary company.

Foreign Subsidiary will be formed as Private Limited/Public Limited Company and the holding foreign holding company will fund the shareholding. It may be noted that holding company can have 100% to have wholly owned subsidiary including shareholding of nominee shareholders who will be the beneficial shareholder of the company.

The investment limit will be in accordance with the FDI Policy of Government of India, where most of the sectors are under the automatic route.

Requirements for Appointment of Resident Director: As per the requirements of the Companies Act, 2013 every Indian Company should have a Resident Director.

Documents Requirements: Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors. For companies it will be :

Board Resolution duly passed for entering and forming Company in India and in case of Individuals

Passport Copy, Driving Licence and

Current Address proof in the form of Bank Statement is required.

Obtaining Digital Signature of Directors

Obtaining Director Identification Number of Director

Application for Approval of Name of Company, this must be unique Preparation of Incorporation Documents

The signing of Incorporation Documents, this too should be notarized and apostilled Application for Incorporation of Company to Registrar of Companies.

Once this application is approved by registrar we get Certificate of Incorporation along with PAN and TAN (Tax Number in India )

GST Registration: GST Registration is required to be obtained afterward.