Indian Subsidary
Legal Darbar provides complete services for registering Indian subsidiary, including name reservation, creating legal documentation, filing with the MCA, and securing relevant clearances. They guarantee compliance with the Companies Act of 2013, FEMA rules, and other regulatory requirements. Legal Darbar also offers help with tax registration, GST, and ongoing compliance. Their knowledge makes the process easier for foreign enterprises wishing to expand in India, ensuring smooth and legal operations. Indian subsidiary registration refers to the process of forming a corporation in India that is controlled by a foreign parent company. legaldarbar.com
Process on which legal darbar is working for registering an Indian subsidiary:
- Company Name Approval: Apply for a name reservation with the Ministry of Corporate Affairs (MCA).
- Obtain the DSC and DIN for the subsidiary’s directors: Requires the indian subsidary.
- Draft and file incorporation documents: Including the Memorandum of Association (MoA) and Articles of Association (AoA). File the spices+ form with the MCA.
- PAN and TAN Applications: Request the subsidiary’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
- Bank Accounts and GST Registration:
Open a company bank account and, if needed, register for GST. - Ensure compliance and documentation: with the Federal Emergency Management Agency FDI, and the Reserve Bank of India rules. legaldarbar.com
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Advantages of an Indian Subsidiary:
- Limited responsibility: The parent company’s responsibility is restricted to its shareholding.
- Access to the Indian Market: Provides easy entry into the Indian market.
- Tax Benefits: Eligible for tax breaks and exemptions under Indian legislation.
- Separate Legal Entity: Functions independently of its parent firm.
- Ease of operation: Enables local hiring and management flexibility.
- Reputation: Increases trust and credibility among local customers and partners. legaldarbar.com
Legal Darbar provides Indian subsidiary registration services to help foreign corporations establish a presence in India.
The primary purposes include:
- Market Growth: Allows foreign enterprises to operate in the Indian market. Limited liability protects the governing firm from financial concerns.
- Tax Advantages: Provides tax benefits and ensures compliance with Indian tax legislation.
- Ease of Operations: Makes it easier to hire local staff and do business legally.
- Brand Establishment: Improves the company’s exposure and reputation in India.
- Compliance Assistance: Handles legal documents, filings, and regulatory needs.
Key Criteria for registering an Indian subsidiary:
- Directors: At least two directors are required, one of whom must be an Indian resident.
- Shareholders: A minimum of two shareholders are required; the parent business can own all of the shares, or any combination of two foreign nationals can be stockholders.
- Registered Office: The subsidiary must have a registered office in India, which can be either leased or owned.
- Compliance: Compliance with the Companies Compliance Act of 2013 and the Foreign Exchange Management Act (FEMA) requirements is required. legaldarbar.com
FAQs for Indian Subsidary Registration?
To ensure transparency and defend shareholders’ interests, material subsidiaries must follow higher compliance laws, such as having independent directors on their boards and meeting increased disclosure requirements.
To register a subsidiary in India, appoint two directors, one of whom must be an Indian resident, obtain a DSC and DIN, submit with the MCA, and follow FEMA and Companies Act restrictions.
Examples of subsidiaries include Instagram (Meta), YouTube (Google), Whole Foods (Amazon), Jio Platforms (Reliance), and Tata Consultancy Services (Tata Sons), operating under their parent companies.
Yes, according to the Companies Act of 2013, at least one director of an Indian business must be a resident Indian who spends 182 days or more in India each year.
Companies establish subsidiaries in India to expand operations, gain access to local markets, enjoy tax benefits, comply with rules, and keep control over their corporate interests.
Yes, a foreign business can own a subsidiary in India by owning up to 100% shares while adhering to FEMA laws and the Companies Act of 2013.
Yes, a company formed outside of India can have subsidiaries in India, provided it complies with FEMA regulations, the Companies Act of 2013, and other legal conditions.
Legal Darbar assists in Indian subsidiary registration by managing documentation, filing with MCA, ensuring legal compliance, and providing expert guidance throughout the incorporation process.