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 registering a subsidiary company.
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 registering a subsidiary company 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 subsidiary company registration, compliance with Indian laws and regulations, and guidance on setting up a local office and bank account opening.
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In this article, we shall take you through all the mandatory Wholly Owned Subsidiary (WoS) 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. Foreign Subsidiary Companies, being registered in India, are governed by Indian laws, like any other Indian company.
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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”
Any public limited or private company needs to have a board of directors constituted for the purpose of managing the day-to-day affairs of the Company. The reason for the existence of the board of directors is that there needs to be a body that is above the management and which can be accountable to the regulators and shareholders for the decisions taken by the management of the company. Continue reading “Foreign Directors in Indian Company”