India 
CanadaIndian Subsidiary Company Registration
Many foreign investors are eager to enter the Indian market due to its abundant opportunities in the rapidly growing business landscape. Any foreign national, except citizens of Pakistan and Bangladesh or entities established and operating outside India, can invest in the Indian market and establish their own subsidiary company in India by acquiring shares in accordance with India’s Foreign Direct Investment (FDI) policy. Before embarking on the Indian Subsidiary Company Registration process, it’s essential for a business entity to have at least one Indian Director, who must be a resident of India, and one Foreign Director, which is a prerequisite for forming an Indian Subsidiary Company.
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A subsidiary company is often referred to as a sister company, with the parent company or holding company having control over it, either partially or completely.
The Indian Subsidiary Company Registration process is governed by the Companies Act of 2013. According to this act, a subsidiary company can be defined as a company in which a foreign corporate body or parent body holds a minimum of 50% of the entire share capital. The parent company wields significant influence over the subsidiary company. It is imperative for a subsidiary company to comply with the laws of the nation in which it is established or intends to establish itself. Therefore, if a subsidiary company is established in India, it must adhere to Indian laws and regulations.
It is important to note that a subsidiary company of a foreign parent company is considered a distinct legal entity, and the subsidiary company is obligated to operate in accordance with the regulations of the country in which it is situated. Business entities can register an Indian subsidiary company as either a private limited company or a public limited company.
- A private limited organization is not open to the general public and enjoys certain advantages provided by the Companies Act of 2013.
- A public limited company is one in which the public holds an interest, and it is subject to various rules and regulations stipulated by the Companies Act of 2013.
This choice between private and public limited companies offers businesses flexibility in determining their operational and regulatory framework within the Indian market.
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Documents Required for Indian Subsidiary Company Registration
Indian National
Foreign National
Other Crucial Documents
Annual Compliances of Indian Subsidiary Company
FAQ
The main objective should be for charitable purpose.
Minimum 2 members should subscribe to capital on incorporations.
There should be minimum 2 directors in the company, one of which must be Indian citizen and resident.
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