Indian Subsidary Registration

There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast-growing markets and have access to some of the best human resources in the world. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the company, subject to the FDI Policy of India. In addition, a minimum of one Indian Director who is an Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India. Investment and acquisition of equity shares of a Company can be broadly divided into two categories: investment under automatic route and investment under Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India. Investment in activities/industries where the automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. Capital Flow can be your legal and professional partner in India to get your New Company / Subsidiary in India started quickly and cost-effectively.

Documents required for registration of Subsidiary Company:- (All copies of documents should be self-attested by the customer)

1. Indian National

  • PAN Card (mandatory)
  • Address proof
  • Photo ID Proof

2. Foreign National

  • Passport (mandatory)
  • Address Proof (Document must be certified by the Indian Consulate)
  • Photo ID Proof (Document must be certified by Indian Consulate)

The minimum requirement to incorporate an Indian Subsidiary

  • Two directors
  • Two shareholders

Procedure to incorporate Subsidiary Company

  • Once the minimum requirements are fulfilled the owners can begin the incorporation procedure.
  • To start with incorporation as subsidiary company, two directors apply for DSC (Digital Signature Certificate), and all the directors must apply for DIN (Director’s Identification No.).
  • The applicant is required to apply for the name of the company in Form INC-1.

After obtaining name approval from ROC (Registrar of Companies), an applicant is required to file –

  • INC-7 (Application for Incorporation of Company (Other than One Person Company)
  • Form DIR-12 (Particulars of appointment of directors and key managerial staff; and
  • Form INC-22 (Notice of the situation) along with Memorandum and Articles of Association of the Company.
  • After filing of the incorporation documents, payment of online ROC fees and Stamp duty is done by the applicant. (This is based on the authorized capital of the company).
  • After the fees are paid, ROC verifies the filed documents. Form INC-22 and DIR-12 are approved via the Straight-Through-Process (STP) and the ROC verifies Form INC-7 in detail. The ROC may suggest some changes in the form or attachment.
  • Once the changes have been affected and the ROC is satisfied, Certificate of Incorporation is sent to the applicant via email.

If the aforementioned documents are available and the right procedure is followed, then there will not be any unnecessary delays and the company can be incorporated at the earliest. However, We at Capital Flow can help you to incorporate a subsidiary company easily.