Ask 4 Compliance | Indian Subsidiary
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INDIAN SUBSIDIARY

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Mandatory Requirements for the Establishment of an Indian Subsidiary/Wholly Owned Subsidiary in India

In order to start a company in India, a minimum of two individuals and an address is required in India. If we are talking about a private limited company, it should have at least two directors (individuals) and a minimum of two shareholders (can be individuals or even corporate entities).

Furthermore, one of the Directors of the Company must be an Indian Citizen and also an Indian Resident (any individual who has continuously stayed in the country of India for over 186 days).

As per the rules, the preferred legal entity structure for the foreign companies is to preferably establish a company which consists of three Directors, out of which two directors can be foreign nationals belonging to the parent company and one of the directors have to be an Indian citizen.

There are no such rules of minimum shareholding of the Indian Director. So, the foreign nationals or entities can hold 100% of the shares.

It is mandatory to have an address in India which can be served as the registered office address of the company.

Our team of highly qualified professionals at Ask4compliance.com can help you to establish an Indian Subsidiary to start your business on Indian soil without any hassle.

Process & Timeline

12-15 days

Professional Fees

Rs. 22500

(GST, Government Fees and other Out of Pocket Expenses Extra)

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ADVANTAGES OF INDIAN SUBSIDIARY

  • Separate Legal Entity: A company is a legal entity and a juristic person established under the Act. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
  • Easy Transferability: Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
  • Uninterrupted Existence: A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
  • Owning Property: A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
  • Foreign Direct Investment: 100% Foreign Direct Investment (FDI) is allowed in many of the sectors through Company type business entity without any prior Government approval. FDI is not allowed in Proprietorship or Partnership, LLP requires prior Government approval.

DOCUMENTS REQUIRED FOR REGISTRATION OF INDIAN SUBSIDIARY

  • Passport size photographs of Director and Shareholders: Two passport size photographs of Director and Shareholders (JPEG format)
  • Proof of identity for Directors: Self attested copy of Pan Card is mandatory for Indian national and passport is mandatory for foreign national.
  • Proof of identity for Shareholders: Self attested copy of Voters Identity Card/Aadhaar Card/Passport/Driving license.
  • Proof of residence both for Directors and Shareholders: Self attested copy of Bank Statement/Electricity Bill/Mobile Bill/Telephone Bill.
  • Power of attorney or board resolution in favor of the authorized representative(s).
  • Registered Office Address Proof
    • If Rented: Rent Agreement and utility bill likely electricity bill, telephone bill, etc. and No Objection Certificate from owner.
    • If Owned: Ownership proof, Receipt of Municipality tax paid etc. and No Objection Certificate from owner.
  • For Foreign Nationals:
  • Foreign national is residing in native country
  • If native country is a signatory of Hague Convention: For attestation, proof of identity, address proof and photo should be duly notarized and be apostillised in the Country of their origin in accordance with Hague Convention by the competent authority of that foreign country.
  • If native country is not a signatory of Hague Convention: For attestation, proof of identity, address proof and photo should be notarized by the Public Notary of that foreign country and consularised by the competent authority of that foreign country.

NOTE: All the documents required to be filed with the Registrar by the foreign companies shall be in English language and where any such document is not in English language, there shall be attached a translation thereof in English language duly certified to be correct.

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