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Registration of a Wholly Owned Subsidiary Company in India

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  • Registration of a Wholly Owned Subsidiary Company in India

    Company Registration in India

    The procedure for registering a subsidiary company in India is very simple and will take around a maximum of 30 days to complete. The followings are the detailed requirements, procedure and system for subsidiary formation in India:
    Requirements of a company in India

    1. Your minimum Authorized capital should be at least Rs. 500000/ (USD 10000 approx). Paid-up Capital can be Rs. 100000/ (USD 2000 approx). It is not required to have these amounts in banks.

    2. There should be minimum two Directors. It is advisable to have an Indian Director also for your representation in India, but not mandatory.

    3. There should be two minimum members (subscribers/ shareholders). In your case one will be company and another may be some other person appointed by you.

    Information Required

    1. Authorized Capital and paid up capital of the proposed Subsidiary Company.
    2. Name of the nominee or representative of the company who will be signing the documents on behalf of the company.
    3. Company Name (Note: The company name will be added with the word India after its name. e.g. ABC India Private Limited)
    4. Address of the Registered office of the company (no address proof is required)
    5. Complete Address of your Parent Company

    Procedure to Followed

    First Step: The first step towards your company formation in India is to get the Directors Identification Number (DIN) and Digital Signature Certificate (DSC)

    Second Step: The second step that we follow is to get the name approval of your company from the registrar of companies.

    Third Step: After getting the name approval, third and most important step is to Draft the Memorandum and Articles of the company and file the same with Registrar.

    Fourth Step: The fourth and last step is to get the Certificate of Incorporation from Registrar and apply for PAN, Income Tax Registration.

    Documents required

    We require the following documents from your end:

    1. Proof of Identity:
    For this 2 copy of PAN, and Passport or Driving License is required.
    (Please note that the proof of identity discloses the Father’s name, Date of birth and Place of Birth)

    2. Proof of Address:
    For this 2 copy of Passport or Driving License or Bank Statement is required.

    3. Photographs:
    2 copies of recent colored photographs of each of the proposed Director,

    4. Copy of valid Indian VISA, if any, of proposed Foreign Directors.

    Note: In case any person who is foreigner, copy of passport must be furnished in addition to above and also the copy of all documents must be notarized and consularised in their country.

    5. Copy of incorporation Certificate (Duly Notarized and Consularized) of the Parent Company

    6. Copy of MOA & AOA (Duly Notarized and Consularized) of the Parent Company.

    7. Board Resolution Duly Notarized and Consularized of the Parent company

    8. Power of Attorney (Authorization Letter) Duly Notarized and Consularized of the Parent company.
    Devesh Pandey

    E-mail: [email protected]

    Mobile: +91 9811237186

    Blog: www.cacscorporatelaw.blogspot.com

    Candidlex Advisors LLP
    (Legal and Management Consultants)
    A-12,
    Lower Ground Floor
    Lajpat Nagar-III,
    New Delhi - 110024

  • #2
    Re: Registration of a Wholly Owned Subsidiary Company in India

    Thanks for sharing this..
    I also want to add some information in this topic.
    Foreign company subsidiary

    There can be two types of it based upon ownership namely

    100% ownership
    Fully owned subsidiaries (only in FDI permitted sectors as Per latest FDI policy)
    Less than 100% ownership
    Joint Ventures
    Indian subsidiaries enjoy same rights as basically Indian Companies. There are certain norms to the activities of proposed companies as per FDI policy of the Government. Many activities are permitted to bring 100% foreign investments whereas on some activities Government has put restrictions where Government gives permission of 100% FDI and in a few activities 100% FDI is not permitted and even Government route can not be availed. In those cases, Joint Ventures are good channel of investment, where a certain percentage is held by Indian entities. In the Joint Venture Form of working, foreign company can get a good financial resource with some ready contacts and experienced partners, however a complete privacy has to be a bit parted with.
    Assistance in getting FIPB Approvals

    There are two entry routes of direct investment in India (FDI):

    Automatic Route
    Government Route (Approval Route)
    Depending upon the sector where proposed investment is to be brought in, the above segregation is done. In many a sectors, Government restricts 100% FDI like defense, telecom etc. For such sectors, one has to get the approval of Foreign Investment Promotion Board (FIPB)- a division of Finance Ministry. We assist you in getting the FIPB approvals, taking care of all the formalities so you can rest assured of our services.

    Channels other than FDI:

    A foreign company can also come and do business in India without investing directly. RBI has permitted such companies to have establishments in India for some limited purposes. Such forms are:

    Liaison office
    Project Office
    Branch Office
    Different permissions and freedoms are attached with each such office. So one has to be careful while making choice of these forms of work. RBI permissions have to be sought for each such organization subject to renewals as specified from time to time. Also, the foreign companies have to register with Registrar of Companies (ROC) within 30 days of setting up a place of business in India, besides the said RBI Approval.

    Read Check List for Setting up a Foreign Company Subsidiary
    Payroll services: www.payrollservicesindia.com | Chartered accountant in Delhi: www.raaas.com

    Comment


    • #3
      Re: Registration of a Wholly Owned Subsidiary Company in India

      Great post-Devesh!

      Comment


      • #4
        Re: Registration of a Wholly Owned Subsidiary Company in India

        It does seem that finally the corporate law in India
        is becoming a little bit more user-friendly.

        Comment

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