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Subsidiary company registration in Bangalore | |
Pre-requisites to register a company in Bangalore | · Minimum 1 Indian Resident Director (i.e., 1 director should be resident in India) · Minimum 2 shareholders · Virtual office or actual office space to be rented in the city where you want to register the company in |
Process to setup a subsidiary in Bangalore | 1. Step 1 – Name approval 2. Step 2 – Applying for digital signatures for the directors 3. Step 3 – Preparing the charter documents of company like MOA and AOA 4. Step 4- Uploading forms SPICE on the www.mca.gov.in 5. Step 5 – Opening bank account It usually takes 2 weeks to get the company registration process completed |
Documents required | · Passport of directors · Address proof of directors and shareholders · Board resolution from the parent company authorising setup of company in India · Registered address proof |
Cost to setup a Subsidiary company in Bangalore | The total cost to incorporate a subsidiary company in India with Rs 1 Lakhs share capital is USD 1100 |
Opening a bank account for subsidiary company in Bangalore | Bank account in any international banks like HSBC, CITI or Standard Chartered can be opened remotely. |
Hiring employees in the company | You can start hiring employees as soon as the bank account in opened. Hiring employees process is similar to that in any other country. You can check about the Labor laws here. |
Subsidiary company registration or a company with foreign shareholders can be registered in India completely online and in 8-10 business days. A bank account can also be opened online. You do not have to visit India to register a company here.
Type of companies that can be registered by foreign nationals in Bengaluru:
- Private Limited Company – Most suited for IT, Trading and back offices
- LLP – Not preferred by foreign entities as employees prefer working for a Pvt Ltd Company
- Branch office – Only preferred by Banks
- Liason Office – Only preferred by Airline ad shipping companies.
Private Limited Company is the most suited structure if you want to have a IT back office, hire employees or trade in India.
Basic details about starting a subsidiary company or a company with foreign shareholders:
- Directors – Minimum 2 directors and required and 1 should be an Indian resident
- Shareholders – Minimum 2 shareholders are required and both can be foreign nationals of foreign companies or combination of both.
- Office Address – A office address in India is mandatory to register a company. You can even subscribe for a virtual office address. The virtual office address in Bangalore can be obtained in as low as USD 50/month
Procedure / Steps to register a subsidiary company in Bangalore
Subsidiary company can be registered in 8 days after we receive your notarized and apostilled documents
- Step 1 – Apply for the name of the MCA portal. It takes around 2 days for name approval
- Step 2 – Get the documents like passport, address proof etc notarised and appostiled in your home country.
- Step 3 – Send us the scanned copies of notarised and appostiled copies and we will upload the forms.
- Step 4 – Get the registration certificate in 8-10 business days
Bank account in India
After the company is registered we connect to you with a Banker of your choice. We generally prefer Global banks like HSBC or DBS. You do not need to visit India to setup the bank account and it can be opened online. You get access to the online banking.
Hiring employees and setting up the payroll system in India:
You can start hiring employees once the bank account is active. We assist you with the following:
- Drafting employment agreement
- Setting up a online payroll system
- Creating tax efficient salary structures
Basic details about labor law in India:
Medical insurance for employees – Medical insurance is not mandatory. But its a good practice to offer medical insurance to the employees.
Leaves – As per the Indian laws its mandatory to give 18 days paid leaves to the employees in a year
Maternity Leave – 26 weeks of paid leave is mandatory for female employees.
Cab services – Its mandatory o provide can services for Female employees if they work after 8.30 PM.
Rest of the clauses are similar to labor laws in other countries.
Taxes in India:
The corporate income tax is around 25% on Profits. This has to be paid quarterly.
Transfer pricing rules in case services provided to the parent company: In case you setup a back office in India and only provide services to the parent company then the markup of 10% will be applied on the cost. So basically you end up paying income tax of 2.5% – 3% on total expenses incurred in India.
Book keeping, tax filing and other compliances in India after the company is registered :
Statutory Audit – Its mandatory for every company to get the annual statutory audit conducted every year.
GST Filing – Monthly GST filing is mandatory
Income Tax return – Annual income tax return is mandatory
Secretarial compliances – Annual secretarial compliances is mandatory for every company
How can we assist you :
We can assist you with subsidiary company registration in Bangalore in the most efficient way. Right from company registration to taking care of all your compliances including incorporation, tax filing, book keeping, statutory audit and secretarial compliances.
Our experienced team of lawyers, CA and CS will answer all your questions before you start the process.
We have our offices in Mumbai, Bangalore and Pune. The office location in Bangalore is as below.
Frequently Asked Questions
No its not mandatory to come to bangalore. Its a completely online process.
Yes a Indian resident director is mandatory to setup a company in India. Its not necessary that you allot any shares to the Indian director.
A address is required to register a company. You can avail virtual office service incase you do not want to have a physical office in Bangalore.
Yes any individual or a company can be a shareholder in the company.
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy