July 21, 2016

Starting Foreign Company Subsidiary in India

Indian Subsidiary Registration

Start Operations in India!

GET STARTED AT
Rs. 58,500  (All Inclusive)

  • DSC & DIN
  • Company Name Reservation
  • MoA&AoA
  • Corporate Identification No (CIN)
  • RBI Approval
  • PAN Registration

About Indian Subsidiary Company Registration

Incorporation of Indian Subsidiary, India is now most preferred country by the world startup community. Foreign companies have shown interest to start operations in India and ready to enter into the world fastest growing economy and with access of the best human resource in the world. A foreign nation or entity (other than citizen/Entity of Pakistan and Bangladesh) can invest and start a business in India subject to FDI Policy. The minimum one director should be the Indian citizen and Indian resident. For investment in India in form equity shares monitored by the Reserve bank of India, there are two categories of investment. Automatic route means no prior regulatory approval required for investment in the Indian company. Investment in activities/industries where an automatic route is not permissible can be made with the approval of Reserve Bank of India.

Package Includes: No Hidden Fees Guaranteed

  • Trade Mark search for your company name
  • Two DSC & DINs
  • Name Reservation
  • MoA & AoA
  • Filling of Incorporation forms to MCA
  • Company PAN

 

Advantage of Indian Subsidiary

Limited Liability

Liability of Members and Directors of the private limited company is limited to their shares. It means that if the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders / Members / Directors will not be at risk of being seized by banks, creditors, and government.

Continuity of Existence

The life of a business is not affected by the status of shareholders and even after the death of the shareholder the private limited company continues to exist.

Brand Value

Company’s brand value will get increased because employees feel secure in joining the private limited company, vendor feel secure in offering credit, investor feels secure in investing, the customer feels trust and confidence in brand in buying company product / services because of a sound corporate structure. This all makes big shape of the company and ensure an easy way for Startup Company to become a multinational company. Startup Company starts with zero revenue and rapidly reaches to multibillion dollar company in just few years just because of high brand value of the company. Always take care of brand value.

The scope of expansion

is higher because easy to raise capital from a venture capitalist, angel investor, financial institutions and the advantage of limited liability. The private limited offer more transparency in the company.

Foreign Direct Investment

100% Foreign Direct Investment (FDI) is allowed in several business activities / industries without any prior approval. Foreign direct investment is not allowed in Proprietorship or Partnership; LLP requires prior Government approval.

Company Registration Process:

1

DSC (Digital Signature Certificate)

All Propose directors / promoters of the company should have a digital signature and digital signature will use to file the Incorporation, ROC compliance forms, and Tax returns. There is no need of a physical signature to register a company. To get DSC, we will ask you to provide a copy of ID & Address proof of all directors. It takes 3 to 5 working days to issue a digital signature certificate.

2

Director Identification No (DIN)

As soon as Digital signature is approved, We will attest DIN form in the capacity of Chartered Accountants, and you will get an approval email from the Registrar of companies that you are now eligible to be a director of a company. It takes one working day to approve DIN.

3

Company Name approval

After a Trademark search, we will proceed to file a Name Approval form to ROC on your behalf. It takes 2 to 3 working days to get approval from the Registrar of Companies

4

Final Incorporation form

After Name approval from the Registrar of Companies, we will file a final incorporation form with all supporting documents like registering address proof, Declaration from directors. We will attest all documents of the proposed company in the capacity of practicing Chartered Accountants. Registrar of Companies will conduct proper due diligence before approving a company. Registrar of companies takes 3-6 working days to complete the approval process of a company.

5

PAN Application

Then we will file PAN. Time one working day.

6

Open your Bank Account aand Start business

We will recommend to our channel partner to open a bank account for your company.

Documents required

From All Directors and Shareholder.

  • A copy Passport of foreign directors (duly notarized by the Indian embassy).
  • Scanned copy of Incorporation certificate issued by the respective foreign government (LLC/ INC) (duly notarized by the Indian embassy).
  • A Resolution from LLC / INC for opening a subsidiary company in India. (duly notarized by the Indian embassy).
  • Scanned copy of Voter’s ID/Passport/Driver’s License & PAN of Indian director.
  • Passport-sized photograph of all directors and shareholder.
  • copy of Signature (signature should same as on PAN Card / Passport).

For Proposed Registered office (Residential or commercial)

  • Any Utility bills
  • Scan copy of Rent agreement with NOC from owner

FAQs on Indian Subsidiary Company

1. Do I need to be present during this registration process?

Company registration is a 100% online process. No need to be present physically to our office or ministry of corporate affairs. We will send our person to your home or office for document signature.

2. What are AOA and MOA?

AOA refers to articles of association which defines the internal constitution of the company, and MOA defines mission, vision, business objectives of the company in the log run.

3. Do I need to hire a full-time CA/ CS?

No. you need not hire a full-time CA or CS. We will offer your annual compliance package thru you will get the right advice from our team.

4. How much time is required for registering a Indian Subsidiary Company in India?

Usually, we register a company in 15 business days.

5. What are the rules for picking a name for a Indian Subsidiary Company?

As Per companies act 2013, company Name should be unique, and business objectives should be added to the name. Also, do care that business name and legal should be different.

6. What documents are required for registration of a Indian Subsidiary Company?

All proposed directors should provide identity proof (like Aadhar/ Passport / DL/ any other government issued ID, Utility bills as address proof, a copy, PAN Card (for Indian Nationals) and Passport (for foreign nationals). No-objection Certificate must be submitted by the owner of the registered office premises.

7. What is a DSC & DIN?

The DSC is an electronic device issued by CA by which you can sign electronic documents. DIN is a director identification number, for registering a company at least two proposed directors should have a valid DIN.

8. What is the validity of the registration of a Indian Subsidiary Company?

A registration certificate issued by the registrar of the business is valid until infinite until you are meeting applicable compliance.

Starting Foreign Company Subsidiary in India

Investing in a Business in India by way of Equity

A foreign national (other than a citizen of Pakistan or Bangladesh) or Starting Foreign Company Subsidiary in India an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest in India by acquiring shares of an Indian company, subject to the FDI Policy of India. Investment in equity shares of existing business 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. Investment in activities  / industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method. Such approvals are granted by the Foreign Investment Promotion Board (FIPB).

Foreign Direct Investment that are allowed in India

Foreign Direct Investment of upto 100% is allowed under the automatic route in many activities/sectors in India. However, foreign investment in any form is prohibited in a company or a partnership firm or a proprietary concern or any entity, whether incorporated or not which is engaged or proposes to engage in the following business: i) Business of chit fund; or, ii) Nidhi Company or, iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, pisiculture, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to agro & allied sector and tea plantations); or, iv) Real Estate business, or construction of farm houses (Does not include development of townships, construction of residential / commercial premises, roads or bridges); or, v) Trading in Transferable Development Rights (TDRs).

Reporting to Government under Automatic Route

A two stage reporting procedure has been introduced for the purpose of reporting Foreign Direct Investment in India. First, on receipt of money for investment from foreign investor, the Company should report to the Regional Office of RBI under whose jurisdiction its Registered Office is located, a report containing information about the investment must be filed. Next on issue of shares to the foreign investor, within 30 days a report in the prescribed format has to be filed with the Regional Offie of RBI. Further, a Certificate from the Company Secretary of the Company accepting investment  and a Certificate from Statutory Auditors or Chartered Accountant in the required format is to be submitted.

Procedure for starting a Foreign Company’s Subsidiary in India

For the Incorporation of a Private Limited Company in India, the following are required from the client:
i) supporting documents, minimum of two directors (One Indian Director who is also an Indian Resident) and an acceptable name for the company.
Once, the above are available, Digital Signature Certificate and Director Identification No. (DIN) is obtained by & on behalf of the client from the Ministry of Corporate Affairs.
On obtaining the DIN and the Digital Signature, request for Company Name is made to the Ministry of Corporate Affairs.
Once, the name approval is obtained, the Memorandum & Article of Association is drafted and filed within 60 days to complete the incorporation process.
A minimum of two shareholders are required for a private limited company. Hence, the holding company in foreign country must pass a Board Resolution for incorporation of Company in India and for the subscription of shares of the proposed Private Limited Company. The foreign holding company can hold 99.99% of the shares of the Indian Company while 0.01% of the issued shares of the Private Limited Company can be held by an Indian, in trust with the foreign Company. Once the Company is incorporated and the Incorporation Certificate is obtained, bank accounts can be opened and the necessary licenses can be obtained. Simultaneously, filings with RBI can be made to indicate FDI in India through the automatic route.

Unique documents required for incorporation of foreign company’s subsidiary in India

The following are some of the unique requirements for incorporating a Private Limited Company with Foreign Directors. Identity and address proof is required for the Director, passport or any other Government issued license or registration containing a photo, name in full and date of birth is acceptable. Passport, Driving License, Bank Account Statement or Utility bill containing name and address can be used as an address proof. The above documents need to be clearly photocopied and the documents should be certified as true copy by the Indian Consulate in country of the holding company or must be appostiled. If the documents are not in English, then a certified translation is also necessary. The above documents must be couriered to India.  Also, a Board Resolution must be passed by the holding company in foreign country for incorporation of subsidiary in India.

Members

A Private Limited Company required minimum of two directors (One Indian Director who is also an Indian Resident) and an acceptable name for the company.. A Private Limited Company can have upto 200 person as members as per the Companies Act, 2013.

Directors

In a Private Limited Company there should be minimum two(2) Directors required minimum of two directors (One Indian Director who is also an Indian Resident) and an acceptable name for the company.. To become a Director, DIN (Director Identification Number) has to be obtained. Any one of the Directors must be a Resident of India, who has stayed at least 182 days in the previous calendar year.

Registered Office Proof

When registering a company, should have a valid address to proof. If you are in Bangalore and you have proper address proof in Pune, then you can register your company in Pune and start your Business operations from Bangalore. This Private Limited Company registration is valid all over India and also valid for your lifetime. No need of renewal of registration is required.

Name of your Company

Naming your company is the crucial part, a company name has two parts Prefix and a Suffix. Prefix must be unique and different, while Suffix should reflect the business nature of your company. To find your name availability, kindly check with Ministry of Corporate Affairs

Package Includes

Registration done within 15 to 20 days

Everything below is included:

  • Free DSC for 1 Director
  • DIN for 2 Directors
  • Name Reservation
  • MOA, AOA & All Incorporation Documents
  • Certificate of Incorporation
  • Company PAN & TAN [After Incorporation]
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