Indian Subsidiary Company Registration for Foreigners

Indian Subsidiary Company Registration is governed and administered by the Companies Act, 2013. Whenever a foreign company owns not less than 50% of the share capital of a company, then the said company is known as a Subsidiary Company.

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Overview on Indian Subsidiary Company Registration

Benefits of Indian Subsidiary Company Registration in India

Process for Indian Subsidiary Company Registration in India

Documents Required for Indian Subsidiary Company Registration

Requirements for Indian Subsidiary Company Registration

Annual Compliances of Indian Subsidiary Company

Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

  • A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
  • Help owners from personal liability and protects from other risks and losses.
  • Draws more customers
  • Ease in obtaining bank credits
  • Offers limited liability to preserve your company’s assets
  • Greater funds supplement and more attractive stability
  • Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability
The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
Separate Legal entity
A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
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Yes as the Indian Company requires a minimum of 2 shareholders and therefore can be 100% subsidiary of the Parent Company.
In One Person Company a single person is the shareholder and the same will the director, who can be an Indian resident according to Companies Act, whereas in Indian Subsidiary Company one foreign director is required. Therefore, Indian Subsidiary Company cannot be a One Person Company.
AOA refers to articles of association which defines the internal constitution of the company, and MOA defines mission, vision, business objective of the company in the long run.
As Per companies act 2013, company name should be unique, and business objectives should be added to the name.
The process to incorporate an Indian Subsidiary requires obtaining DIN and DSC, and also, there is a requirement of name approval. Thereafter, the MOA is drafted and filed within 60 days to complete the incorporation process for an Indian Subsidiary.

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