Starting a subsidiary company in India can be a great way to expand your business and tap into new markets. The process of registering a subsidiary company in India is very simple and can be done online . In this post, we will provide a step-by-step guide to help you navigate the process and successfully register your subsidiary company.

Basics of Subsidiary Registration in India:

Shareholders: Minimum 2 shareholders are required. Bot the shareholders can be foreign companies or foreign person.

Directors: Minimum 2 directors required. Of them one should be resident Indian director that is residing in India (not OCI or NRI). Its not necessary to give any shares to the Indian Director.

Capital: There is no requirement of minimum capital. 

Cost and Time: It takes 12-15 business days to get the company registered after we receive the documents. The cost for the same including government fees is USD 1400. The above fees includes the following:

• Professional fees and Government fees for upto capital of USD 5000.
• Name Approval
• Digital Signature and DIN of directors
• Certificate of registration
• MOA, AOA of the company
• FDI compliances and FCGPR compliances

Income Tax rate for subsidiary companies in India : The subsidiary companies are taxes @ 25% on the profits.

Bank Account Opening for subsidiary company : After the company is registered in India the Bank account should be opened. The bank account can be opened remotely and you do not need to visit India. The bank provides you with Internet banking credentials

The monthly and annual cost of filing for a subsidiary  company: This fee includes the government fees and the professional fees to run a company in India

Documents: All the documents from foreign company and foreign persons should be notarised and appostiled. Documents like a certificate of registration, board resolution, etc are required:

• Passport & Driving license fo the directors
• Certificate of Incorporation and Bard resolution from the parent company

Steps to register a subsidiary company:

The incorporation process involves the following steps

• Apply for the name of the company on MCA portal
• Obtain digital signatures and director identification numbers for directors
• Prepare documents like MOA and AOA
• Get the documents like MOA and AOA notarized and apostilled
• File incorporation form on the MCA portal
• Open the bank account
• Start your business

Step 1: Choose a company name

The first step in registering a subsidiary company in India is to choose a unique and distinctive company name. The name should not be similar to any existing company names and should comply with the guidelines set by the Ministry of Corporate Affairs. You can check the availability of your chosen company name on the Ministry’s website. 

Step 2: Obtain DIN and DSC

The next step is to obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC) for each of the proposed directors of the company. The DIN is a unique identification number assigned to directors of Indian companies, and the DSC is an electronic signature that is used to file documents online with the Ministry of Corporate Affairs.

Step 3: File the incorporation documents

Once you have obtained the necessary DIN and DSC, you will need to file the incorporation documents with the Ministry of Corporate Affairs. This includes the Memorandum of Association (MOA) and the Articles of Association (AOA), which set out the rules and regulations of the company, as well as the form for appointment of directors.

Step 4: Obtain certificate of incorporation

After filing the incorporation documents, you will need to wait for the Ministry of Corporate Affairs to review and approve them. Once the documents are approved, you will receive a certificate of incorporation, which serves as proof that your subsidiary company is legally registered in India.

Step 5: Bank Account opening

Bank account for the company can be opened only after the company is registered. It takes 2 weeks for bank account to be opened. It can be opened remotely.

Step 6: Register for tax and other compliance

Finally, you will need to register your subsidiary company for tax and other compliance purposes. This includes obtaining a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN), as well as registering for various taxes such as the Goods and Services Tax (GST) and corporate income tax.

By following these steps, you can successfully register your subsidiary company in India and begin operations. However, it’s important to note that the specific requirements and procedures may vary depending on the type of business you are starting and the location of your subsidiary.