Comprehensive Solutions for Your Indian Subsidary
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COMPANY FORMATION
Indian Subsidary
An Indian Subsidiary is a type of business structure where a foreign company establishes a subsidiary in India. The parent company holds a majority share in the Indian entity, allowing it to maintain control while taking advantage of local resources, talent, and markets. Establishing an Indian Subsidiary enables foreign companies to enter the growing Indian market while complying with local laws and regulations. This structure is ideal for foreign businesses looking to expand their operations, enhance market presence, and leverage the benefits of India’s economy.
Benefits of an Indian Subsidiary
1. Access to Indian Markets: Allows foreign companies to tap into India’s growing consumer base and market opportunities.
2. Limited Liability Protection: The parent company’s liability is limited to the amount of capital invested in the subsidiary.
3. Tax Benefits: Indian subsidiaries may qualify for various tax incentives and government schemes aimed at promoting foreign investment.
4. Operational Flexibility: The subsidiary has the flexibility to manage its operations while benefiting from local resources and talent.
5. Brand Expansion: Establishing a subsidiary allows foreign companies to expand their brand presence and grow in the Indian market.
Who Should Opt for Indian Subsidiary Registration?
1. Foreign Companies Expanding to India Establish a Strong Presence in India’s Growing Economy
Foreign companies looking to enter the Indian market can establish an Indian subsidiary to gain access to local markets, benefit from favorable investment policies, and manage their operations while complying with Indian regulations.
2. Multinational Corporations Seeking Local Talent Leverage India’s Skilled Workforce for Business Growth
Companies looking to hire local talent, outsource operations, or set up manufacturing facilities can register an Indian subsidiary to streamline operations, reduce costs, and access the skilled workforce available in India.
3. Startups and Innovative Enterprises Expand Globally by Entering the Indian Market
Startups and tech companies can benefit from establishing an Indian subsidiary to explore new markets, take advantage of local talent, and create a foundation for global expansion while maintaining control over their operations.
4. Businesses Seeking Investment and Partnerships Attract Local Investors and Collaborate with Indian Companies
Establishing an Indian subsidiary allows foreign companies to attract local investors, enter joint ventures, and collaborate with Indian businesses. This structure makes it easier to build long-term partnerships in the Indian market.
Our Process
1. Consultation and Strategy Development: We analyze your business goals and provide a tailored strategy for establishing an Indian subsidiary.
2. Documentation and Compliance: Handle all legal documentation, approvals, and filings with Indian regulatory authorities, including ROC (Registrar of Companies), RBI (Reserve Bank of India), and SEBI (Securities and Exchange Board of India).
3. Tax Planning and Financial Compliance: Assist with tax registrations, compliance with Indian tax laws, and ongoing advisory services to ensure your subsidiary operates efficiently.
4. Ongoing Advisory and Operational Support: Provide continuous support for managing the subsidiary, ensuring compliance with local laws, and offering guidance on scaling operations.
Comprehensive Services for You
Startup
Registrations
Compliance
Financial Services
Secretarial Services
ESOP (Employee Stock Ownership Plan)
Expand Your Business
Marketing Services
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Have questions? Ask us or find your answer here
To register an Indian subsidiary, the foreign parent company must hold at least 50% of the shares. The subsidiary must have at least two directors, one of whom must be an Indian resident, and a registered office in India.
The registration process typically takes 15-20 working days, depending on document submission and approval from regulatory authorities such as the Registrar of Companies (ROC).
Indian subsidiaries must file annual returns, financial statements, and tax returns with Indian authorities. Additionally, they must comply with the regulations of the Reserve Bank of India (RBI), including Foreign Direct Investment (FDI) rules.
Yes, foreign nationals can be directors of an Indian subsidiary. However, at least one director must be an Indian resident as per the Companies Act, 2013.
Indian subsidiaries are taxed under the Indian corporate tax structure. Depending on the nature of the business, subsidiaries may qualify for tax benefits under the Foreign Direct Investment (FDI) policy and other government schemes promoting foreign investment.
An Indian subsidiary is a separate legal entity from its parent company, providing limited liability protection and more operational flexibility compared to a branch office. Subsidiaries also enjoy easier access to local markets and are treated as domestic companies for tax purposes.
Yes, Indian subsidiaries can repatriate profits to their parent company, subject to compliance with Foreign Exchange Management Act (FEMA) regulations and Reserve Bank of India (RBI) guidelines.
The required documents include the identity and address proof of directors, proof of the registered office in India, Memorandum of Association (MOA), Articles of Association (AOA), and shareholding structure details. Additionally, the parent company’s incorporation certificate is required for verification.