Introduction
India is one of the fastest-growing economies in the world, making it an attractive destination for foreign investors. One of the most popular routes for foreign companies to enter the Indian market is by setting up an Indian subsidiary company Registration. An Indian subsidiary offers the benefit of limited liability, separate legal entity status, and access to the vast Indian market.
What is an Indian Subsidiary Company?
An Indian subsidiary company is a company incorporated in India, either as a Private Limited Company or a Public Limited Company, in which a foreign entity owns more than 50% of the total share capital.
There are two types:
- Wholly Owned Subsidiary – 100% shares held by a foreign company.
- Partially Owned Subsidiary – Majority shares (more than 50%) held by a foreign company.
Benefits of Setting Up a Subsidiary in India
- 100% foreign ownership (in most sectors under the automatic route)
- Separate legal identity
- Access to the Indian market
- Limited liability for foreign shareholders
- Ability to repatriate profits after taxes
- Easier compliance compared to a branch office or liaison office
Step-by-Step Process to Register a Subsidiary in India
1. Obtain Digital Signature Certificate (DSC)
All proposed directors must have a valid DSC to sign electronic documents.
2. Apply for Director Identification Number (DIN)
DIN is required for all directors. Apply via the SPICe+ form or DIR-3.
3. Reserve Company Name
Use the RUN (Reserve Unique Name) service or SPICe+ form to reserve a unique company name that reflects foreign ownership.
4. Draft MOA & AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), tailored for the subsidiary's operations in India.
5. File for Incorporation using SPICe+
Submit the SPICe+ form with required documents to the Ministry of Corporate Affairs (MCA).
6. PAN, TAN & Bank Account
After incorporation, apply for a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and open a company bank account.
Required Documents
From Foreign Company:
- Certificate of Incorporation (apostilled/notarised)
- Memorandum & Articles of Association
- Board resolution authorising investment
- Address proof of the foreign company
From Indian Directors:
- Identity proof (PAN/Aadhar)
- Address proof (Utility bill/copyright)
- copyright-size photographs
- Digital Signature Certificate
Compliances After Registration
- GST Registration (if applicable)
- RBI Reporting (FC-GPR through FIRMS portal)
- Annual Filing with MCA
- Income Tax Returns
- Maintenance of statutory registers
Time & Cost Estimate
- Timeline: 10–20 business days (subject to document availability)
- Cost: Varies based on professional fees, government charges, number of directors, and authorised capital
Sectors Where 100% FDI is Allowed (Automatic Route)
- E-commerce (B2B)
- Manufacturing
- Software Development
- Renewable Energy
- Infrastructure
Note: Some sectors, such as defence, telecom, and print media, require government approval.
Why Choose Kanakkupillai for Subsidiary Company Registration?
- Expert handling of foreign company documentation
- End-to-end compliance support
- Affordable pricing and transparent process
- Quick turnaround time
Conclusion
Setting up a subsidiary company in India is a strategic move for foreign businesses looking to establish a solid presence in the Indian market. With proper legal support and compliance guidance, the process is straightforward and highly rewarding.