Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
Incorporate your Indian Subsidiary Company at just 14,999/-*
*Govt. fees on actuals and GST included
You Get -
- Expert Assistance
- Total Process takes 20-25 days
- DSC
- Incorporation Certificate
- DIN
- PAN/TAN
No Hidden Charges and Full Transparency
Indian Subsidiary Company Registration
Establishing a subsidiary in India is a strategic move that can significantly accelerate your company’s global growth. With one of the fastest-growing economies and a diverse consumer base, India offers vast potential for foreign businesses. At India Company Setup, we provide end-to-end assistance for incorporating a foreign subsidiary company in India. Our experienced team ensures a smooth process — from understanding Indian legal structures and securing regulatory permissions to handling compliance and documentation. Partner with us to set up your subsidiary in India and unlock substantial growth opportunities.
Understanding Subsidiary Companies
A subsidiary company is one that is either partially or wholly controlled by another company, known as the parent or holding company. The parent company holds at least 50% of the total share capital, which grants it significant influence over the subsidiary’s operations and decisions.
Under the Companies Act, 2013, an Indian subsidiary is defined as a company in which a foreign parent company owns at least 50% of the shares.
Types of Subsidiaries in India
Establishing a subsidiary in India is a strategic move that can significantly accelerate your company’s global growth. With one of the fastest-growing economies and a diverse consumer base, India offers vast potential for foreign businesses. At India Company Setup, we provide end-to-end assistance for incorporating a foreign subsidiary company in India. Our experienced team ensures a smooth process — from understanding Indian legal structures and securing regulatory permissions to handling compliance and documentation. Partner with us to set up your subsidiary in India and unlock substantial growth opportunities.
There are two main types of subsidiary structures in India:
Wholly-Owned Subsidiary (WOS): In this setup, the foreign parent company holds 100% of the shares. However, WOS can only be established in sectors where 100% Foreign Direct Investment (FDI) is permitted under Indian law.
Partially-Owned Subsidiary: Here, the foreign parent owns at least 50% but less than 100% of the shareholding.
Before incorporating a foreign subsidiary in India, approval from the Reserve Bank of India (RBI) may be required to ensure compliance with foreign investment regulations.
Benefits of Setting Up a Subsidiary Company in India
Establishing a subsidiary in India offers several notable advantages:
Access to the Indian Market: India’s vast and growing market presents significant business and investment opportunities for international firms.
FDI Opportunities: Foreign entities can invest directly through share purchases in private Indian companies. In 2020, the Indian government mandated prior approval for investments from countries bordering India.
Perpetual Succession: Indian companies enjoy continuity, irrespective of changes in directors, shareholders, or ownership.
Limited Liability: Shareholders’ personal assets are protected; liabilities are confined to their shareholding.
Diversification: A foreign subsidiary enables diversification and expansion, introducing new products and services to the Indian market.
Separate Legal Identity: A subsidiary operates independently of its shareholders and can initiate legal proceedings in its own name.
Property Ownership: Subsidiaries can own or rent real estate for their operations, strengthening business stability.
This paper is important since it defines clearly their roles and obligations, thereby avoiding misunderstandings and conflicts among couples. Moreover, it proves the existence of the cooperation and can be utilized in court to settle conflicts. To so obtain these advantages, one must file a partnership deed.
Regulatory Bodies Involved
Several regulatory authorities oversee Indian subsidiary company registration:
Ministry of Corporate Affairs (MCA): Sets and enforces company registration laws.
Registrar of Companies (ROC): Handles company incorporation and compliance documentation.
Reserve Bank of India (RBI): Manages foreign exchange regulations related to foreign investments.
Key Requirements for Registering a Subsidiary in India
Here are the essential components needed for incorporation:
Company Name: Must be unique and not infringe on existing trademarks.
Shareholders: The parent company may hold 100% of shares; no Indian shareholder is required.
Share Capital: No minimum capital requirement in India.
Directors: At least two directors, with one being a resident of India. Nominee director services are available.
Registered Office: A local address is required; virtual office solutions are available.
Annual Meetings: At least one Annual General Meeting and two Board Meetings are required each year.
Company Secretary: Responsible for secretarial filings; three returns are mandatory each year. A statutory auditor must also be appointed.
Taxation Overview
– Post-registration, Indian subsidiaries are subject to a corporate tax rate of approximately 25.36%.
– Goods and Services Tax (GST) is applicable to domestic transactions, requiring monthly and annual filings.
– Professional fees and government registration charges apply.
Annual Compliance Obligations
– Statutory audit is mandatory, regardless of company size.
– Annual financial statements and returns must be filed with MCA and ROC.
– Appointment of a statutory auditor is compulsory.
Step-by-Step Process for Indian Subsidiary Registration
1. Choose the Type of Company: Decide between a Private Limited or Public Limited structure.
2. Obtain DSC: Digital Signature Certificates are required for all proposed directors.
3. Apply for DIN: Directors must secure a Director Identification Number from the MCA.
4. Name Approval: Reserve a company name through the MCA’s online portal.
5. Draft MoA and AoA: These documents define your company’s mission, structure, and operating rules.
6. File Incorporation Forms: Submit all required documents using the SPICe+ form via the MCA portal.
7. Pay Fees: Pay government fees based on the company’s authorized capital.
8. Get the Certificate of Incorporation (COI): Issued by the ROC upon successful verification.
9. Apply for PAN & TAN: Mandatory for taxation and compliance purposes.
10. Open a Bank Account: A corporate bank account in the company’s name is required.
11. GST Registration: Essential for companies conducting taxable transactions in India.
12. Commence Operations: Once all regulatory steps are complete, your business is ready to operate.
Compliance Requirements for Foreign Subsidiaries
To legally operate in India, a foreign subsidiary must comply with the following regulations:
1. FEMA (Foreign Exchange Management Act): Governs foreign investment and currency exchange.
2. Companies Act, 2013: Lays down all structural, operational, and compliance mandates.
3. RBI Regulations: Ensures proper reporting of foreign investment and currency transactions.
4. Income Tax Act, 1961: Mandates annual tax filings; current corporate tax rate is 25%.
5. SEBI Regulations: If listed on stock exchanges, compliance with SEBI’s disclosure rules is necessary.
Taxation Guidelines for Foreign Subsidiaries
– Income earned globally is subject to Indian taxation.
– Tax rate for royalties/technical services from Indian entities: 50%.
– Other foreign income: taxed at 40%.
– Surcharge: 2% for income between ₹1 crore and ₹10 crores; 5% above ₹10 crores.
– Health & education cess: 4% on total tax.
– Concessional rates apply for specific industries such as oil & gas, aviation, and shipping.
Minimum Requirements for Company Types
Private Limited Company: Minimum two directors (one Indian resident) and two shareholders.
Public Limited Company: Minimum three directors and seven shareholders.
How India Company Setup Supports
At India Company Setup, we simplify the process of Indian subsidiary company registration. From company name selection and obtaining DINs/DSCs to PAN applications and opening business bank accounts — we manage it all. Our team ensures compliance with FEMA, the Companies Act, RBI, SEBI, and tax laws.
We also handle your annual filings, secretarial obligations, and audit requirements. With our expert guidance, you can confidently launch and grow your foreign subsidiary in India.
What We Offer
At India Company Setup, we deliver a complete suite of business services to help you start, grow, and manage your company with ease. From registration to regulatory compliance, our expert support ensures your business stays legally sound and financially organized.
Daily & Monthly Bookkeeping
- Record all financial transactions.
- Maintain audit-ready books in sync with GST and Income Tax laws
- Stay prepared for MCA and statutory filings
Financial Reporting
- Preparation of Profit & Loss Statements and Balance Sheets
- Generate detailed balance sheets.
- Deliver cash flow statements.
Reconciliation Services
- Bank and credit card reconciliations.
- Ensure accuracy of all financial data.
- Maintain accuracy for timely Income Tax and MCA submissions
Secure Digital Bookkeeping
- Utilize encrypted software for data security.
- Anytime, anywhere access to your business data
- Aligned with India's data protection and compliance standards
Benefits of Our Bookkeeping Services
1. Accurate Financial Records
Our expert bookkeeping ensures every transaction is correctly recorded, reducing compliance errors and giving you a clear picture of your company’s financial health — crucial for GST, Income Tax, and MCA filings.
2. Time-Saving
Focus on growing your business while we manage your books. By outsourcing to us, you eliminate the burden of paperwork, reconciliations, and regulatory upkeep — saving you both time and effort.
3. Better Cash Flow Management
We help you monitor income and expenses in real time, so you maintain a healthy cash position, make informed decisions, and avoid last-minute cash crunches or missed tax deadlines.
A Subsidiary Company is a company controlled by another company called the Parent or Holding Company. The Parent holds more than 50% of the shares or voting rights in the Subsidiary.
The main steps include:
Obtaining Digital Signature Certificates (DSC)
Applying for Director Identification Number (DIN)
Name approval with the Registrar of Companies (RoC)
Filing the incorporation forms with Memorandum and Articles of Association (MoA & AoA)
Getting the Certificate of Incorporation
Yes, foreign companies can register a subsidiary in India by complying with the Foreign Direct Investment (FDI) policies and Companies Act, 2013.
Advantages include limited liability protection, separate legal entity status, easier compliance with local laws, and better market presence in India.
Typically, the registration process takes around 7 to 15 working days, subject to document verification and approval from the Registrar of Companies.
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