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
Safeguarding business Secrets :
As Foreign company have operational control on subsidiary company this offers protection and security to companies trade secrets.
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.
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.
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
Capital
A minimum share capital requirement Rs. 100,000/- ( USD $ 1540 ).
Shareholder
Minimum Two shareholders are required to incorporate a Private Limited Company in India.
Nationality
Minimum of two directors are required out of whom one should be a resident in India.
Documents Required for Wholly Owned Indian Subsidiary
Photo
- 2 Passport Size photograph.
Address Proof (Any two)
- Aadhar Card
- Driving License
- Voter ID
- Passport
ID Proof
- PAN CARD(Not mandatory in case of Foreign Director)
ID Proof
- Passport(Mandatory for Foreign Director, Must be in English Language and duly apostle)
Other Documents (Any One)
- Credit Card Statement
- Bank Passbook
- Telephone Bill
- Electricity Bill
Note: If the proposed director is in foreign country then all the documents must be duly apostl
Indian Subsidiary Registration Process
Digital Signature
DSC for Directors is mandatory
DIN Application
Making online Application to opt for DIN i.e Directors Identification Number
Name Approval
Making Application for proposed name of the Company from Options given by directors
Incorporation through SPICE (Simplified Proforma for Incorporating Companies Electronically)
Making an application to MCA through newly launced online process i.e SPICE (Simplified Proforma for Incorporating Companies Electronically) whereby documents like Memorandum & Articles of Association of the Company is submitted online through forms INC-33 & INC-34 promoting paperless through go green concept simultaneously submitting all required documents and keeping follow up for Certificate of Incorporation and applying for PAN & TAN of the Company.
Start up a Company
Once Certificate of Incorporation is opted, the directors can commence its business
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FAQ
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