Registering an India Subsidiary is one of the most common types of entry in India by Foreign Entities. Registering an Indian Subsidiary can be done by incorporating a private limited company (Private Limited) or by incorporating a Limited Liability Partnership (LLP).
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Registration of Indian subsidiary of Foreign Company
For registering Indian Subsidiary of Foreign Company as a private limited or LLP there is a need of one Indian resident individual, we at ReturnFilings.Com will assist you in providing Indian resident individual for compliance purpose. We at ReturnFilings.Com also provide registered office service in India.
A subsidiary company is defined in Companies Act 2013 as Any Company whose holding company controls the composition of Board of Directors or exercise or control more than half of total share capital.
Foreign Direct Investment is 100% allowed in most sectors except for few eleven industries which require prior approval from Government, these eleven industries are Mining, Defence, Broadcasting, Print Media, Civil Aviation, Satellites, Telecom, Private Security Agencies, Trading of food products, Financial Services, and Pharmaceuticals. Thus, incorporating a Private Limited Company or Limited Liability Partnership (LLP) as part of Indian Subsidiary complies with the FDI rules under automatic route in most of the cases.
There are two types of Subsidiary company registration, one is wholly owned subsidiary of Foreign Company and another is Joint Venture. Difference between both of them is ownership structure. A Joint Venture is formed by entering an agreement between two parties and the Subsidiary company registration is separate legal entity. Most of the Foreign companies preferred for registration with 2 foreign Directors and 1 Indian Director, as it is mandatory to have one Indian resident individual in the Company, this Indian Director need not be a shareholder and entire shareholding vest in the hands of Foreign Director. The Ownership, Control, and operation management decision are vested in the hands of the Parent Company.
For exercising the control of Indian subsidiary company, most of the holding companies execute Shareholders Agreement. Through the Shareholders Agreement, the holding company exercise the composition of Directors and management structure of Subsidiary company.
For registering an Indian subsidiary, first and foremost part is applying for the name of the proposed company / LLP, a foreign company can apply the same name as in the foreign country using the document for the certificate of incorporation in a foreign country, the same name can be applied with the condition of using the word ‘India’ in its name. Registered trademark of foreign company can be used as a trademark for incorporation in India. After approval of the name by the Ministry of Corporate Affairs, the proposed company/LLP can proceed further for incorporation of the subsidiary entity in India, the incorporation process is online and the applicant use to attach necessary documents for incorporation of entity. Online application are filed on the portal of ‘Ministry of Corporate Affairs’ and it can be accessed online on www.mca.gov.in.
With the ever-changing Law and regulatory requirements for Indian Subsidiary of Foreign Companies, we keep on track and advise the same on a timely manner to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your subsidiary company registration in India and thereafter will provide you detailed analysis featuring the industry scenario in India, Various incentives/subsidy schemes available according to industry type. Detail analysis for Set-up of industry or company to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.