As a foreign company, expanding your business to India can be a smart move. With its large and growing economy, India offers a wealth of opportunities for businesses of all sizes. One way to establish a presence in India is by incorporation of foreign subsidiary in India.
Understand the Process of Incorporation of Foreign Subsidiary in India
A subsidiary company is a separate legal entity that is owned by a parent company. It operates independently, but is still controlled by the parent company. This allows the parent company to have a presence in India without having to set up a new company from scratch.
The process of subsidiary company registration in India can be complex, but with the right guidance, it can be a smooth and successful endeavor.
At VenturEasy, we have a team of experts who specialize in helping foreign companies navigate the Indian business landscape. Our services include assistance with Incorporation of foreign subsidiary in india, compliance with Indian laws and regulations, and guidance on setting up a local office and bank account opening.
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Due to India’s booming industries, its huge consumer market made it an ideal destination for foreign investors hoping to extend their commercial ventures elsewhere. Subsidiary registration in India is a complex process, involving compliance with government regulations, tax laws, and corporate governance norms. Starting a subsidiary company in India is a strategic decision that comes with multiple legal hurdles and regulatory requirements. This article will help to reveal the specifics of the Indian Subsidiary Company Registration – so just catch up with us to see how it works!
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In this article, we shall take you through all the Mandatory Compliances that are applicable on a Subsidiary Company, at different points of time, during the year.
A subsidiary company is any company, where 50% or more of its share capital is owned by a company that is incorporated in another foreign nation. The said foreign company is called the holding company or the parent company. Subsidiary Companies, being registered in India, are governed by Indian laws, like any other Indian company.
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Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated.
Managing the day to day operations of your business along with complying the corporate laws can be little taxing for any entrepreneur. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.
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Private Limited Company Registration is considered to be the most ideal for NRIs, foreign nationals and for foreign entities who want to set up business in India.
According to FEMA guidelines, Foreign Direct Investment (FDI) is restricted in other types of businesses like Proprietorship, Partnership Firm and One Person Company. Though FDI is permitted under the automatic route in LLPs operating in sectors where 100% FDI is allowed through the automatic route and there are no FDI linked performance conditions. Continue reading “Company Registration for NRIs and Foreign Nationals in India”