How can I incorporate a subsidiary of a foreign company in India?

How can I incorporate foreign subsidiary in India?

Procedure for incorporation of wholly owned subsidiary

  1. Step 1: To apply for Digital Signature Certificate (DSC) …
  2. Step 2: Apply for name reservation of proposed company. …
  3. Step 3: Incorporation of wholly owned subsidiary. …
  4. Step 4: Post incorporation compliance.

Can foreign company have subsidiary in India?

For a company to be a foreign subsidiary company in India, the company itself must be incorporated in India. It does not matter which country the parent company is incorporated in. Compliances are based on many aspects of the company. … FEMA (Foreign Exchange Management Act), 1999 – RBI compliances etc.

Can a foreign company be incorporated in India?

Any foreign company can establish its place of business in India by filing eForm FC-1 (Information to be filed by foreign company). Note: The eForm needs to be digitally signed by authorized representative of the foreign company. There is no need to apply and obtain DIN for Directors of a foreign company.

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How do I register a subsidiary company in India?

How to Set Up an India Subsidiary

  1. Get a Director Identification Number (DIN) online.
  2. Get a Digital Signature Certificate (DSC) online.
  3. Reserve a business name through the Registrar of Companies.
  4. Prepare the Memorandum and Articles of Association.
  5. File an incorporation application online.

How do I incorporate a subsidiary company?

Procedure to incorporate Subsidiary Company

To start with incorporation os subsidiary company, two directors apply for DSC (Digital Signature Certificate), and all the directors must apply for DIN (Director’s Identification No.). The applicant is required to apply for the name of the company in Form INC-1.

What is subsidiary company with examples?

Subsidiaries are either set up or acquired by the controlling company. In cases, where the parent company holds 100% of the voting stock, the subsidiary company structure is referred to as a wholly owned subsidiary. For example, Walt Disney Entertainment owns 100% of Marvel Entertainment which produces movies.

How do I incorporate a foreign subsidiary?

Incorporation of Foreign Subsidiary in India

  1. Step 1: Name Reservation with Ministry of Corporate Affairs:
  2. Step 2: Obtaining Digital Signature certificate for the subscribers and Directors:
  3. Step 3: Documents required along with Incorporation Application (Spice Part B):
  4. Step 4: fill the information in the Online form.

How can a foreign subsidiary Close in India?

The Indian Party have to pass the board resolution and file form ODI part III along with the supporting documents related to closure of overseas JV/WOS with the Authorised Dealer. The authorized dealer in turn reports the same in the online OID application through their nodal office.

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Do foreign subsidiaries have to pay taxes in India?

Interest from foreign subsidiaries is fully taxable in the hands of the Indian company, with credit allowed for foreign tax withheld or paid, up to the Indian tax on the interest.

Can a foreign company hold 100% shares in Indian company?

The 100% shares of the Indian Company can be held by a combination of Foreign Companies and/or Foreign Nationals. Indian private limited companies require a minimum of two shareholders mandatorily. Hence, one corporate entity or person cannot hold all the shares of an Indian Private Limited Company.

Do foreign subsidiaries have to pay taxes?

The profits of a foreign subsidiary corporation are ordinarily not subject to tax in the United States because the general Internal Revenue Service rule is that foreign subsidiaries are not considered U.S. corporations even if they are wholly owned.

Can a foreign company operate in India without registration?


Business entities registered outside India (“Foreign Company”) can establish business operations in India without creating and registering a limited company or limited liability partnership. Subject to the RBI guidelines, a foreign company can open a Branch Office or Liaison Office or Project Office in India.

Do subsidiaries need to be registered?

If the company makes the business line a subsidiary, the company may also decide to incorporate it as a legally separate entity. The decision rests with the business owner or parent company, as subsidiaries aren’t legally required to be incorporated.

How do you create a legal subsidiary?

How to Create a New Company, or Subsidiary, of an Existing…

  1. Step 1: Authorize the formation of a subsidiary. …
  2. Step 2: Choose a business entity type for the new company. …
  3. Step 3: Draft the company’s formation document under state law. …
  4. Step 4: File the formation document and fee with the state.
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Can a private limited company have subsidiaries?

What is subsidiary private limited company or 100% subsidiary of a private limited company? … Aforesaid relation between companies is called a holding-subsidiary company. For example:- if A private limited has 100% shares of B Private limited, then B private limited is called subsidiary of A private limited.