Indian Subsidiary of Foreign Company
Starting from INR 44,999/700 USDIndian Subsidiary of foreign company is a private limited company in which shareholding and investment is from any individual/entity which is Non-resident (Other than Pakistan and Bangladesh).
After Indian government has launched “Make In India” campaign and incentives provided and red tapism has been removed; foreign companies are looking for Indian market as it is growing at a rapid speed, also resources are readily available in INDIA. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the Indian company which is subject to the FDI Policy of India. Also other main criteria is a minimum of one Indian Director who is a Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.
Foreign Companies can invest in India through 2 ways- automatic route and investment under Government approval route.
“Automatic Route- In terms of Regulation 6 of the Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time, an Indian Party has been permitted to make investment / undertake financial commitment in overseas Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS), as per the ceiling prescribed by the Reserve Bank from time to time.
With effect from July 03, 2014, it has been decided that any financial commitment (FC) exceeding USD 1 (one) billion (or its equivalent) in a financial year would require prior approval of the Reserve Bank even when the total FC of the Indian Party is within the eligible limit under the automatic route (i.e., within 400% of the net worth as per the last audited balance sheet). There is a detailed list of business and investment along with rules and regulations which need to kept in mind while investing through Automatic Route, Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India.”
Investment in activities / industries where automatic route is not available can be made with the approval of the Government under the Government Approved FDI method.
Features
Perpetual Succession- Private Limited Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.
Compliances- It is necessary for a company to audit its books of accounts irrespective of its turnover and also need to file annual statement within stipulated time given by government, if not done penalties and prosecution is attracted.
LIMITED LIABILITY- The greatest benefit of Indian subsidiary is limited liability. Members are only liable for unpaid shares held by them and not more than that, there is no personal liability of shareholders to the creditors of a company for company's debts.
Property Ownership - Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name, property may be tangible or intangible such as machinery, land & building, factory, trademark, patent etc., shareholders can't exercise their rights on property of company.
Foreign Direct Investment- 100% of FDI is allowed in many sectors without any approval from government in many cases, LLP require prior government approval & FDI is not allowed in proprietorship and partnership.
Investment Ways-- Investment and acquisition of equity shares of a Company can be done through two ways: (a) investment under automatic route (b) investment under Government approval route.
Silver
- ₹44,999
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- TAN
- PAN
- Name Approval
- Incorporation of company having share capital of 1 Lakh
- Share Certificate
- 2 DSC
- DIN
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- –
- –
- –
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Gold
- ₹54,999
-
- TAN
- PAN
- Name Approval
- Incorporation of company having share capital of 1 Lakh
- Share Certificate
- 2 DSC
- DIN
- Assisting in searching Indian Director and Registered Office in India
- –
- –
- –
Platinum
- ₹89,999
-
- TAN
- PAN
- Name Approval
- Incorporation of company having share capital of 1 Lakh
- Share Certificate
- 2 DSC
- DIN
- Assisting in searching Indian Director and Registered Office in India
- Annual Filings
- TDS Returns
- Auditor Appointment
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Documents Required for Indian Subsidary Of Foreign Company Registration
Passport
Address Proof
Driving License
Residance Card
Bank Statement(Not older than 2 months)
Government issued form of identity containing address.
Click here to get list of complete documents required for registration of Indian Subsidiary of foreign company