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Step-by-Step Guide to Registering a Subsidiary Company in India (2025)

India has emerged as one of the fastest-growing economies in the world, attracting foreign investors and multinational corporations (MNCs) eager to establish a footprint here. One of the most popular structures for global companies entering the Indian market is the subsidiary company.

Whether you are a foreign parent company or an Indian enterprise expanding operations, registering a subsidiary company in India in 2025 requires careful planning, compliance with the Companies Act, 2013, and approvals under the Ministry of Corporate Affairs (MCA).

This article provides a comprehensive, step-by-step guide to subsidiary company registration in India, covering eligibility, process, documents, costs, timelines, compliance, and benefits.

 

What is a Subsidiary Company?

A subsidiary company is a company in which another company, known as the holding company or parent company, controls at least 50% of the share capital or has significant management control.


For foreign investors, this structure is the most preferred mode of establishing a business presence in India because it allows full control while enjoying the benefits of a locally incorporated company.

 

Why Register a Subsidiary Company in India?

Here are the top reasons foreign companies prefer subsidiary registration in India:

  1. Full Ownership Flexibility – Foreign parent companies can own up to 100% equity in most sectors (except restricted ones under FDI rules).
  2. Separate Legal Entity – The subsidiary is distinct from the parent company, limiting liability.
  3. Access to Indian Market – Gain direct access to India’s vast consumer base and B2B ecosystem.
  4. Tax Benefits – Subsidiaries are eligible for deductions and benefits available to Indian companies.
  5. Credibility – Indian subsidiaries are recognized as domestic companies, boosting trust with customers and vendors.
  6. Ease of Compliance – MCA’s digital systems (SPICe+, RUN, DSC/DIN integration) make the process faster in 2025.

 

Types of Subsidiary Companies in India

When registering, the parent company can choose from the following structures:

  1. Wholly-Owned Subsidiary (WOS): Parent owns 100% of shares.
  2. Joint Venture Subsidiary: Shares are partly owned by the parent and partly by Indian partners.
  3. Private Limited Subsidiary: Commonly preferred for startups and MNCs due to limited liability and flexibility.
  4. Public Limited Subsidiary: Suitable for larger investments with multiple shareholders.

 

Step-by-Step Guide to Registering a Subsidiary Company in India (2025)

Let’s go through the process in detail:

Step 1: Decide Business Structure & Shareholding

  • Determine whether you want a private limited subsidiary or a public limited subsidiary.
  • For foreign parent companies, decide the percentage of shareholding (51%+, 100%).
  • Ensure compliance with FDI (Foreign Direct Investment) guidelines for your sector.


Step 2: Obtain Digital Signature Certificates (DSC)

  • At least one director must be an Indian resident.
  • All directors/shareholders must obtain DSC for signing incorporation forms online.


Step 3: Apply for Director Identification Number (DIN)

  • Directors must apply for DIN via SPICe+ form.
  • In 2025, DIN issuance is linked to e-KYC using PAN and Aadhaar for stronger verification.


Step 4: Reserve Company Name via RUN or SPICe+

  • Apply for a unique name using the Reserve Unique Name (RUN) service on the MCA portal.
  • The name must include the word “Private Limited” or “Limited” and comply with MCA guidelines.
  • Approval is usually granted within 24–48 hours in 2025 due to upgraded MCA systems.


Step 5: Draft MOA & AOA (Charter Documents)

  • Memorandum of Association (MOA): Defines objectives of the company.
  • Articles of Association (AOA): Defines internal rules, rights, and responsibilities.
  • For a subsidiary, mention foreign parent company details in MOA.


Step 6: File SPICe+ Form with MCA

  • The SPICe+ (INC-32) form integrates multiple registrations:
    • Company incorporation
    • PAN, TAN
    • GSTIN, EPFO, ESIC
    • Mandatory bank account opening
  • Upload required documents along with SPICe+.


Step 7: Submit Required Documents

Typical documents required include:

  • Identity & address proof of directors/shareholders.
  • Proof of registered office address in India (rent agreement/ownership proof + utility bill).
  • NOC from property owner (if rented).
  • Charter documents (MOA & AOA).
  • Parent company resolution approving subsidiary incorporation.


Step 8: Pay Fees & Stamp Duty

  • Fees depend on authorized capital.
  • In 2025, MCA has revised incorporation fees, offering reduced charges for capital up to ₹20 lakh.


Step 9: Certificate of Incorporation (COI)

  • Once approved, MCA issues a Certificate of Incorporation.
  • It includes the company’s CIN (Corporate Identification Number), PAN, and TAN.
  • The subsidiary is now a legally registered company in India.

 

Compliance Requirements After Incorporation

Even after registration, subsidiaries must follow ongoing compliance under MCA and GST:

  1. Commencement of Business (INC-20A): File within 180 days of incorporation (relaxed timelines for startups in 2025).
  2. Appointment of Auditor: Must be done within 30 days.
  3. Board Meetings: Minimum 4 per year (for private companies, exemptions may apply).
  4. Statutory Registers & Records: Maintain registers of members, directors, charges, etc.
  5. Annual Filings:
    • AOC-4 (financial statements)
    • MGT-7 (annual return)
  6. GST Compliance: Registration, filing returns, ITC reconciliation.
  7. Other Registrations: Shops & Establishment, Professional Tax, etc. depending on state.

 

Costs & Timelines for Subsidiary Registration in India (2025)

  • Timeline: 10–15 working days (faster with digital MCA processes).
  • Government Fees: Reduced for authorized capital up to ₹20 lakh.
  • Professional Fees: Varies depending on advisory partner.

 

Benefits of Registering a Subsidiary in India

  • 100% foreign ownership permitted in most sectors.
  • Full access to Indian tax benefits, subsidies, and startup schemes.
  • Independent legal identity, limiting parent company liability.
  • Easy repatriation of profits (subject to FEMA rules).
  • Greater credibility in Indian market compared to liaison or branch office.

 

Common Mistakes to Avoid

  1. Choosing a company name that violates MCA naming rules.
  2. Not appointing at least one resident Indian director.
  3. Ignoring sectoral FDI caps or approval requirements.
  4. Filing incomplete or incorrect charter documents.
  5. Missing post-incorporation compliances such as INC-20A filing.

 

FAQs on Subsidiary Company Registration in India

Q1. Can a foreign company hold 100% shares in an Indian subsidiary?
Yes, except in restricted sectors under FDI rules.

Q2. How long does subsidiary registration take in India in 2025?
With upgraded MCA systems, the process usually takes 10–15 working days.

Q3. Is one Indian director mandatory for subsidiaries?
Yes. At least one director must be an Indian resident as per the Companies Act, 2013.

Q4. Can a subsidiary company raise funds in India?
Yes. A subsidiary can raise funds from Indian investors, banks, or through FDI as per RBI/FEMA guidelines.

Q5. What is the difference between a subsidiary and a branch office?
A subsidiary is an Indian company with its own legal identity, while a branch office is just an extension of the foreign parent company.

 

Conclusion: Register Your Subsidiary in India with Ease

Registering a subsidiary company in India in 2025 is one of the best ways for foreign businesses to enter the Indian market. With MCA’s updated digital processes, incorporation is faster and cost-effective, but the documentation and compliance requirements can be complex without professional guidance.

At India Company Setup, we provide end-to-end assistance for:

  • Subsidiary company registration in India.
  • Drafting charter documents (MOA & AOA).
  • FDI and FEMA compliance advisory.
  • Post-incorporation compliances and GST support.


Ensure a smooth entry into India’s booming market. Contact us Now! Call 9915731447 today and let our experts handle your subsidiary registration and compliance while you focus on business growth.

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