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Indian Subsidiary Company Registration – N D Savla & Associates
Establishing a subsidiary company in India can be a game-changing decision for foreign businesses looking to expand into one of the world’s fastest-growing economies. At N D Savla & Associates, we specialize in Indian Subsidiary Company Registration, offering end-to-end support to seamlessly incorporate and operate your foreign subsidiary in India.
Our expert team provides tailored guidance throughout the registration process—from obtaining necessary approvals to ensuring full compliance with the Companies Act, 2013, FEMA, and RBI regulations. Let us help you unlock India’s business potential with precision, compliance, and confidence.
What is a Subsidiary Company?
A subsidiary company is controlled by a foreign parent company, which owns at least 50% of its share capital. The parent company can hold either a partial or full stake and influence the subsidiary’s business operations and strategic decisions.
As per the Companies Act, 2013, a foreign subsidiary in India can be classified as:
Wholly-Owned Subsidiary (WOS): 100% shares owned by the foreign company. Permissible only in sectors allowing 100% Foreign Direct Investment (FDI).
Subsidiary Company: The foreign entity holds more than 50% but less than 100% of the shares.
Why Register a Subsidiary Company in India?
Access India’s Thriving Market
India offers enormous opportunities for foreign businesses with a large consumer base and a competitive economic landscape.
- 100% FDI Allowed
In many sectors, foreign companies can fully own their Indian subsidiary without requiring government approval.
- Perpetual Succession
The company continues to operate regardless of ownership or management changes, ensuring long-term stability.
- Limited Liability
Directors’ and shareholders’ personal assets are protected; only the company is liable for business debts.
- Diversification Opportunities
Expand product or service offerings and explore new revenue streams across Indian regions and industries.
- Separate Legal Entity
A subsidiary in India operates as an independent legal entity, capable of owning property, signing contracts, and initiating legal proceedings.
Requirements for Indian Subsidiary Company Registration
| Requirement | Details |
|---|---|
| Company Name | Unique and compliant with MCA naming guidelines |
| Shareholders | Minimum 2; parent company can hold 100% of shares |
| Directors | Minimum 2 directors; at least 1 must be a resident of India |
| Registered Office | Mandatory physical or virtual address in India |
| Capital Requirement | No minimum capital requirement under Indian law |
| Statutory Compliance | AGM, Board Meetings, Annual Filings, and Tax Returns |
| Company Secretary | Required for secretarial filings and maintaining compliance |
Step-by-Step Process to Register a Subsidiary in India
Choose Company Structure – Private Limited Company is the most preferred.
Obtain DSC & DIN – Digital Signature Certificates and Director Identification Numbers.
Reserve Company Name – Via MCA portal using the RUN or SPICe+ form.
Draft MOA & AOA – Define business objectives, scope, and internal governance rules.
File Incorporation Documents – Submit through MCA portal (SPICe+ form).
Receive Certificate of Incorporation – Issued by the ROC on approval.
Apply for PAN & TAN – Required for tax compliance and transactions.
Open Company Bank Account – In the name of the Indian subsidiary.
GST Registration – Mandatory if the company engages in taxable goods/services.
Start Operations – Once all legal and regulatory steps are completed.
Compliance Requirements for Foreign Subsidiaries in India
FEMA Compliance – Adherence to foreign investment rules and RBI reporting.
ROC Compliance – Filing of annual returns, financials, and board resolutions.
Statutory Audit – Mandatory for all Indian companies, irrespective of turnover.
Income Tax Return Filing – Annual ITRs and TDS compliance.
GST Filing – Monthly/quarterly and annual GST returns.
Transfer Pricing – If transactions occur between the subsidiary and parent company.
Taxation of Indian Subsidiary Companies
Corporate Tax Rate: ~25.17% (including surcharge and cess)
Withholding Tax: 40% on other income; 50% on royalty or technical service fees
GST: Applicable to goods/services; varies by category
Transfer Pricing: Arm’s length pricing must be maintained for inter-company transactions
FDI Policy for Subsidiary Companies in India
100% FDI Allowed: In most sectors such as IT, manufacturing, and consultancy.
Approval Required: In sectors like defense, telecom, media, and mining.
Automatic Route: No prior government approval required in permitted sectors.
Private Limited vs Public Limited Subsidiary
| Criteria | Private Ltd. Subsidiary | Public Ltd. Subsidiary |
|---|---|---|
| Minimum Directors | 2 (1 must be Indian resident) | 3 |
| Minimum Shareholders | 2 | 7 |
| Minimum Capital | No minimum capital required | No minimum capital required |
| Ownership Flexibility | Can be 100% foreign-owned | Can be listed or privately held |
Why Choose N D Savla & Associates for Indian Subsidiary Registration?
At N D Savla & Associates, we provide end-to-end legal, tax, and regulatory services to foreign companies establishing operations in India. Here’s how we help:
Company Name Reservation & Legal Structuring
Director DIN & DSC Procurement
ROC & RBI Filing Compliance
PAN, TAN, GST Registration
Statutory Audit & Annual Filing Support
FEMA, RBI, and Income Tax Compliance
Nominee Director & Virtual Office Solutions
Whether you’re a startup or a global enterprise, we offer customized subsidiary registration packages to suit your business needs and timelines.
Get Started Today!
Ready to set up your foreign subsidiary company in India? Let N D Savla & Associates be your trusted partner. Contact us today for a free consultation and begin your journey into India’s vibrant business ecosystem.
