Indian Subsidiary

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Indian Subsidiary

  • Company Registration
  • Share Certificates
  • Current Account Opening
  • GST Registration
  • 3 Digital Signatures
  • RUN Name Approval

Market Price – Rs: 41,899 

OnlineTaxSeva Price- Rs: 29,599 (All Inslusive)

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“Note: Please talk to an advisor first and get all doubts resolved before proceeding with payment. Once we receive the payment, our team will reach out to you and work on the service.”

 

Documents required For Indian Subsidiary

Address proof
Registered Office
Aadhaar Card

ID Proof of all the Directors

Indian Company Registration 

An overview of foreign businesses’ and foreign individuals’ entry strategies in India

Foreign companies and foreign nationals can enter the Indian market by adopting various entry strategies, which are as follows:

  1. Setting up a wholly-owned subsidiary: A wholly-owned subsidiary is a separate legal entity that is owned 100% by the foreign company. This allows the foreign company to have complete control over the operations of the subsidiary.

  2. Joint venture: A joint venture involves partnering with an Indian company to start a new business venture. This allows the foreign company to leverage the local knowledge and expertise of the Indian partner.

  3. Acquisition of an existing company: Foreign companies can acquire an existing Indian company to enter the Indian market. This allows the foreign company to enter the market quickly and leverage the existing customer base and infrastructure of the acquired company.

  4. Franchising: Franchising allows foreign companies to enter the Indian market by partnering with a local franchisee who has local market knowledge and expertise.

  5. Licensing: Licensing involves granting permission to a local Indian company to use the foreign company’s intellectual property rights such as trademarks, patents, and copyrights.

Foreign nationals can enter the Indian market by setting up a liaison office, a branch office, or a project office.

  1. Liaison office: A liaison office is set up for the purpose of promoting the business of the foreign company and acting as a communication channel between the parent company and its Indian clients.

  2. Branch office: A branch office is set up to carry out the same business as the parent company. However, it is not allowed to carry out any manufacturing activities in India.

  3. Project office: A project office is set up for a specific project or contract. It is allowed to carry out only activities related to the specific project.

Before entering the Indian market, foreign companies and foreign nationals need to comply with the Indian laws and regulations related to foreign investment and business operations in India. It is advisable to seek the assistance of a professional to ensure compliance with the regulatory requirements.

FDI in Private Limited Company

Foreign Direct Investment (FDI) is permitted in private limited companies in India subject to certain conditions and restrictions. The following are the key points to be aware of:

  1. Sectoral Caps: FDI is allowed in most sectors under the automatic route, where prior approval from the government is not required. However, in certain sectors such as defense, media, and aviation, prior approval from the government is required and FDI is subject to a sectoral cap.

  2. Limits on FDI: The maximum FDI that can be brought into a private limited company in India is subject to the sectoral caps and the company’s ownership structure. For example, if the company is owned by Indian residents, the maximum FDI that can be brought in is determined based on the sectoral caps.

  3. Eligibility of the Company: Only those private limited companies that comply with the rules and regulations of the Companies Act, 2013 are eligible to receive FDI. The company must have a minimum of two shareholders and two directors, and it must comply with the requirements for share capital, registered office, and annual compliance filings.

  4. Prohibited Activities: FDI is not allowed in certain prohibited activities such as lottery business, gambling, real estate, and chit funds.

  5. Reporting Requirements: The company receiving FDI is required to report the details of the investment to the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA) within a specified time.

  6. Compliance Requirements: The company receiving FDI is required to comply with the regulations related to foreign investment, such as the pricing guidelines for issuance of shares to foreign investors and the restrictions on transfer of shares held by foreign investors.

In summary, FDI is allowed in private limited companies in India subject to the sectoral caps and compliance with the rules and regulations. It is advisable to seek the assistance of a professional to ensure compliance with the regulatory requirements related to FDI in India.

Incorporation of Private Limited Company for Foreign Companies and Foreign Nationals: 

  1. Obtain a Digital Signature Certificate (DSC): The first step is to obtain a DSC for all the directors and shareholders of the company. This is necessary for filing the documents with the Ministry of Corporate Affairs (MCA) electronically.

  2. Apply for a Director Identification Number (DIN): The next step is to apply for a DIN for all the directors of the company. This is a unique identification number that is required to become a director in a company.

  3. Reserve a name for the company: The next step is to reserve a unique name for the company. The name should comply with the naming guidelines provided by the MCA.

  4. Prepare and file the incorporation documents: The next step is to prepare the incorporation documents such as Memorandum of Association (MOA) and Articles of Association (AOA), and file them with the MCA.

  5. Obtain a Certificate of Incorporation (COI): Once the incorporation documents are filed and approved by the MCA, a COI is issued. This marks the completion of the incorporation process, and the private limited company is legally recognized as a separate entity.

Foreign companies and foreign nationals may also need to obtain certain additional approvals and permissions from the Foreign Investment Promotion Board (FIPB) or other relevant authorities, depending on the sector and the extent of foreign investment.

signing the MOA and the Articles of Association (AOA)

Subscribing to the Memorandum of Association (MOA) and Articles of Association (AOA) is an important step in the incorporation process of a private limited company in India. The subscribers to the MOA and AOA are the initial shareholders of the company, and their names and signatures appear on these documents.

Draft the MOA and AOA: The MOA and AOA are the founding documents of the company, and they set out the objectives, rules, and regulations of the company. These documents must be drafted carefully, with the help of a professional or a qualified corporate service provider.

Sign the MOA and AOA: Once the MOA and AOA are drafted, the subscribers must sign these documents. The subscribers must sign in the presence of at least one witness, who must also sign the documents.

File the MOA and AOA with the Registrar of Companies (ROC): The signed MOA and AOA, along with other incorporation documents, must be filed with the ROC. The ROC will review the documents and issue a Certificate of Incorporation (COI) if everything is in order.

It is important to note that the MOA and AOA cannot be altered or amended without the approval of the shareholders, and in some cases, the approval of the ROC or other regulatory authorities may also be required. Therefore, it is important to draft the MOA and AOA carefully, with a long-term perspective.

Indian Subsidiary FAQ’s

1. How many individuals are need to form a Private Limited Company?
A private limited corporation must be incorporated by a minimum of two persons. A private limited corporation can have up to fifteen directors, with a minimum of two required. A private limited corporation may have a minimum of two shareholders and a maximum of 200 stockholders.

2. What qualifications are needed to become a Director?
The Director must be a natural person who is at least 18 years old. Regarding citizenship or residence, there are no restrictions. As a result, Directors of an Indian Private Limited Corporation might even be foreign nationals.

3. How much capital is required to launch a Private Limited Company?
A Private Limited Corporation can be launched with any amount of funding. Nevertheless, the Authorized Capital Charge (a cost for issuing a minimum number of shares worth Rs. 1 lakh) must be paid to the Government in order for the Company to be incorporated. No documentation of funds contributed during the incorporation procedure is necessary.

4. Does establishing a Private Limited Corporation require an office?
A location in India where the company’s registered office will be located is necessary. The location where communications from the MCA will be received may be commercial, industrial, or residential.

5. Do I need to be physically present when forming a Private Limited Company?
No, you won’t need to show up at our office or any other office to incorporate a private limited company. It is possible to scan and send our office all of the papers. It will also be necessary to courier some documents to our office.

6. What documents are necessary for incorporation?
All candidates for the Company’s Board of Directors must provide valid identification and evidence of residence. Indian citizens are required to have a PAN Card. In addition, the owner of the registered office space must produce his or her identification and address proofs as well as a No Objection Certificate authorising the use of the space for the registered office.

7. How long does the incorporation process take?
A Private Limited Corporation may be incorporated through IndiaFilings.com in 7–15 days. The length of time needed for incorporation will depend on how quickly the customer submits the necessary paperwork and how quickly government approvals are granted. Please pick a distinctive name for your company and make sure you have all the necessary paperwork before beginning the incorporation procedure to guarantee quick incorporation.

8. What do I require to form a company quickly?
Make sure the suggested name of the Private Limited Company is really distinctive if you want to create a company swiftly. Names that are confusingly similar to those of an existing trademark, limited liability partnership, or private limited corporation may be denied, and further time will be needed for name resubmission.

9. How long is the company’s incorporation valid?
A company that has been incorporated will continue to operate and exist so long as the yearly compliances are timely satisfied. If yearly compliance requirements are not met, the company will become dormant and may eventually be removed from the register. A company that has been struck off may be reinstated for up to 20 years.

10. What is a certificate for digital signatures?
When submitting papers over the Internet, a digital signature helps to electronically verify the sender’s or signee’s identity. The Directors are required by the Ministry of Corporate Affairs (MCA) to digitally sign certain of the application forms. Hence, a digital signature is necessary for all Directors of a proposed Company.

11.What does a director identification number (DIN) mean?
All current and potential directors of a company are given a Director Identification Number, which is a special identifying number. All Directors, whether now serving or hereafter nominated, should possess a Director Identification Number. A person is only allowed one Director Identification Number, which has no expiration date.

12. What is the authorized capital fee?
The authorized capital of a Company is the number of shares a company can issue to its shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay an authorized capital fee of a minimum of Rs.1 lakh.

13. What legal requirements must a private limited company meet?
A board meeting must be held by a private limited corporation at least once every three months. The Private Limited Corporation should hold an Annual General Meeting at least once a year in addition to the Board Meetings.

14. Are foreigners and NRIs permitted to serve as directors of private limited companies?
After receiving a Director Identification Number, an NRI or foreign national may serve as a director in a private limited company. In the Board of Directors, however, at least one Director must be an Indian resident.

15. Can NRIs or foreigners own stock in a private limited company?
Yes, according to Foreign Direct Investment (FDI) Rules, NRIs, Foreign Nationals, and Foreign Businesses may own shares of Private Limited Companies.

16. What are the FDI guidelines for Foreigners in a Private Limited Company?

In several of the sectors covered by the Automated Route, 100% FDE is permitted in India. Just a post-investment filing with the RBI identifying the type of investment made is required under the Automatic Way. A few sectors need the RBI’s prior clearance; in these circumstances, authorisation must be acquired from the RBI before investment.