Advantages of Indian Subsidiary Company Registration

• Limited Liability

  Directors and members of an Indian Subsidiary company enjoy limited liability, which means their financial liability is restricted to the extent of their company shares. This safeguard shields their personal assets from potential financial distress within the company.

• Encourages Foreign Direct Investment

  The Indian Government permits 100% Foreign Direct Investment (FDI), fostering rapid growth in various business sectors. Unlike other business structures, FDI in an Indian Subsidiary Company requires no prior approval, encouraging foreign investment.

• Perpetual Succession

  The concept of perpetual succession ensures the seamless continuation of the company's operations, regardless of changes in its directors or members. Factors like insolvency, death, or transitions won't disrupt the company's existence.

• Scope of Expansion

  Indian Subsidiary Companies reap the benefits of a Private Limited Company. These structures are well-equipped for streamlined growth, development, and expansion, facilitated by capital infusion from venture capitalists, financial institutions, and investors.

• Property Acquisition in India

  A foreign subsidiary company operates independently and possesses the right to acquire properties within India, which supports its operational needs.

• Borrowing Funds

  Registered Indian subsidiary companies are eligible to secure funds through loans from authorized financial institutions, providing them access to necessary capital for business operations and growth.

• Legal Standing - Sue and Sued

  Indian subsidiary companies possess legal personhood, enabling them to both file legal suits and be subject to legal action, contributing to their standing as credible entities.

Registration procedure of Indian Subsidiary Company

• The Ministry of Corporate Affairs has introduced the SPICe+ form to simplify the process of registering an Indian Subsidiary Company. The form is divided into two parts:

Steps For Company Registration Process in India

• Part A - Name Reservation Process:

  This initial part involves reserving a name for the company. Once the name reservation process is completed, the incorporation process proceeds to Part B.

• Part B - Incorporation Steps:

  After successfully reserving the company name, the incorporation steps are undertaken. These include:

• 1. DIN Application:

  Applying for Directors Identification Number (DIN) for the directors involved in the company.

• 2. Issuance of PAN and TAN:

  The process involves obtaining Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.

• 3. Opening a Bank Account:

  Initiating the process of opening a bank account dedicated to the company's operations.

• 4. Allotment of GSTIN:

  Acquiring the Goods and Services Tax Identification Number (GSTIN) for the company, facilitating compliance with GST regulations.

This new registration process streamlines the steps required for Indian Subsidiary Company registration, making it more efficient and user-friendly. Always ensure to stay updated with the latest information and guidelines from the Ministry of Corporate Affairs and consult experts for accurate guidance during the registration process.

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Documents needed for Indian Subsidiary Company Registration

• For Indian National

• PAN Card

• Address Proof

• identity Proof such as Driving License, Aadhaar Card, Voter Id

• For Foreign National

• Passport

• Address Proof which must be certified by Indian Consulate

• Identity Proof which must be certified by Indian Consulate

• And Other Important Basic Documents

• DIN or Directors Identification Number

• DSC or Digital Signature Certificate

• Residential Proof

• Article of Association (AOA) for the company

• Memorandum of Association (MOA) for the company

• No Objection Certificate from the owner of the registered business place

• Certificate of Incorporation issued by the foreign government

• Check out the characteristics of Indian Subsidiary Companies

• Approval in advance is not required for the return or repatriation dividend

• As per Union budget 2020 the dividend distribution tax is nil

• Capital:

  There is no specific minimum capital requirement for the registration process of an Indian Subsidiary Company.

• Directors:

  To register an Indian Subsidiary Company, a minimum of two directors is required. Crucially, one of these directors must be a resident of India.

• Shareholders:

  The registration process mandates a minimum of two shareholders for the formation of the Indian Subsidiary Company.

• Equity Shares:

  Approximately 50% of the equity share capital must be owned by the parent company.

• DIN (Director Identification Number):

  Obtaining DIN is a mandatory requirement for all directors involved in the Indian Subsidiary Company registration process.