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Forming Foreign Company Subsidiary In India

With Make In India Popularity Lots Of Foreign Companies Showing There Interest In Opening Subsidiary Company In India Reason Behind Is India Is  Fastest Growing Market And It Have One Of Best Human Resources. A Foreign National Other Than Pakistan And Bangladesh Can Invest In India By Acquiring Shared Of Company However Same Need To Follow FDI Policy Procedure And Conditions

What Is Wholly Owned Subsidiary Comapany In India By Foreign Company ?

Where a foreign company makes hundred percent ( 100 % ) ( takes all shares ) FDI in India through automatic route , the Indian company become the wholly owned subsidiary company in India.

For Example – XYZ Inc. of America owns 100 per cent shares in  Shree Pvt. Ltd. Then  Shree Pvt. Ltd. becomes the Subsidiary Company.

Types of Business Entities in India.

  • Private Limited Company
  • Public Limited Company
  • Unlimited Company
  • Limited Liability Partnership (LLP)
  • Partnership
  • Sole Proprietorship

 

As a Investor ( foreign ) who is making investment in India , it is very important to make a right kind of suitable business which full fill its purpose and take care of liabilities and tax planning. Companies who Planning do enter in India market need to pay a special attention to what entry strategy to be taken. We help foreign invertor to take prepare right entry level strategy for minimizing taxes and further compliances and registration of Foreign Company Subsidiary In India.

Benefits of Incorporating Wholly owned Subsidy in India

  1. Safeguarding business Secrets :

As Foreign company have operational control on subsidiary company this offers protection and security to companies trade secrets.

  1. Limited Liability of Foreign Company :

In case of worth scenario where a subsidiary company suffers any liability, in that case the incurred liabilities and credit claims won’t be passed on to the parent company. Hence Foreign company have limited liability towards subsidiary company.

  1. Control on Operation and Strategies :

As Foreign company have direct operational and strategies control that foreign company can exercise in subsidiary company. As all control is in hand of holding company hence there is less chances of losing intellectual property.

  1. Owning Brand Name :

The overall benefit for both companies that in forming a wholly owned subsidiary that is subsidiary can retain its name brand while the parent company is afforded the opportunity to branch out into new markets.

Prerequisite for Forming Foreign Company Subsidiary In India

  1. Capital –        A minimum share capital requirement Rs. 100,000/- ( USD $ 1540 ).
  2. Shareholder – Minimum Two shareholders are required to incorporate a Private Limited Company in India.
  3. Nationality – Minimum of two directors are required out of whom one should be a resident in India.

Documents Required for Wholly Owned Indian Subsidiary

  • 2 Passport Size photograph.
  • Address proof Like – Aadhar Card Driving License, Voter ID, Passport) any two
  • PAN CARD (Not mandatory in case of Foreign Director).
  • Passport (Mandatory for Foreign Director, Must be in English Language and duly apostle).
  • If the proposed director is in foreign country then all the documents must be duly apostle
  • Any one of following : Credit Card Statement Bank Passbook, , Telephone Bill, Electricity Bill).