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.
Subsidiary Registration in India enables a foreign parent company to establish a wholly owned subsidiary as an autonomous legal entity in India. Through subsidiary registration, the Indian subsidiary operates as a separate legal entity from its overseas parent, with independent management and operational control, in compliance with Indian company laws.
As per FEMA Guidelines NO FDI is allowed for proprietorship, partnership firm & one person company. Investment in LLP’s can be made but restricted with prior government approval in various sectors.
As such, the most convenient and simple form of business enterprise in India for foreign subsidiaries is establishment of a Private Limited Company.
Minimum requirements for Indian Subsidiary Company Registration:
- Capital: There is no minimum capital required to form a Private Limited Company in India.
- Directors: To establish a Private Company in India, at least two directors are required. Both should be individuals with one such person being an Indian resident’. (The residential status that is required for a person to be identified as an Indian resident include being present in India for not less than 182 days within the said financial year)
- Shareholders: Private limited companies should have no less than two shareholders in accordance with the Companies Act, 2013. Shareholders have no residency condition. There may be one or more shareholder i.e. individual, organization/s, or a combination of both.
Check list of documents for subsidiary registration in India:
- For Indian Resident Director: Photograph, Photocopy of PAN card, Aadhar card, copy of passport/voters ID/driving license and Bank Statement / Electricity/ Telephone bill as address proof – not older than two months.
- For Foreign Directors/Shareholders and Authorized Representative of Foreign Company: Photograph, Copy of Passport, Copy of Driving License, Bank Statement/Electricity/Telephone bill in the country of residence – not older than two months.
- For Indian Company: Address Proof of Proposed Place of Business (Rental Agreement, Utility bill (electricity bill for the premises) – Not more than two months old; NOC to use the premises as a registered office.
When engaging in Indian subsidiary company registration, it’s important to fulfil all the necessary legal requirements and documentation.
Procedure of Subsidiary Registration in India:
Step 1. Name Approval:
The very first step on your road map, is making a company’s name reservation prior to Subsidiary Registration in India . For a subsidiary company, it may be allowed to use the same title as of the parent company but adding the word ‘India’ at the end of it. A name is approved, unless identical with existing ones or being inadmissible under law.
Step 2. Procurement of DSC:
Simultaneously, the Company’s proposed directors will be issued with their Digital Signature Certificates. Such DSC shall be utilized in filing the registration application digitally and will also form part of future compliance reporting process.
Step 3. Subsidiary Registration in India – Application:
This is the last stage of the Subsidiary Registration procedure. The same entails filing of the Memorandum and Articles of Association of the Company along with other undertakings with the Ministry of Corporate Affairs
List of Subsidiary Registration documents to be executed:
- Articles of Association
- Memorandum of Association
- Form DIR 2 declaration from directors.
- Form INC-9 – Declaration of Directors/Shareholders and Authorized Representative.
- Foreign Company/Directors – PAN Undertaking.
In case of Foreign Nationals, the process of execution of incorporation documents is as under:
- The documents that are signed outside India should be notarized by a Public notary of the resident country and consularised or apostilled by the concerned authorities, in the home country of the subscribers.
- For the documents signed in India, the directors/shareholders should provide a copy of Visa and stamped Passport confirming his or her physical presence in India at the time of signing.
- If the subscriber is a foreign entity, then the registration documents should be signed by the representative of the foreign entity.An Authorization Letter duly stating the name of the Authorized Person and the number of shares subscribed should be notarized, consularized or apostilled, as the case may be in the home country of the subscriber company.
Following approval of the application for subsidiary registration in India, the Registrar would issue a Certificate bearing a Corporate Identification Number(CIN). The Company’s PAN and TAN would also be issued simultaneously.
Should you want to know more on Subsidiary Registration in India, kindly email us. Let us make your success story in India. Please drop us an email at [email protected] with your queries/ requirements.
BONUS: Why Should One Register a Subsidiary in India?
Market Access
The establishment of an Indian subsidiary opens a gateway into what is considered as one of the largest and fastest growing market in the word. This allows foreign companies entering Indian market through operations in India.
Limited Liability
Limited liability is one of the main advantages of a subsidiary company. Only the parent’s assets are exposed; these include assets owned by the subsidiary that operates, as a shell company, outside of the jurisdiction of bankruptcy law, thereby shielding the parent from litigation.
Taxation
Their Indian subsidiaries may take advantage of numerous tax exemptions and treaty provisions that may reduce their cumulative tax burden. Nevertheless, understanding the intricate India’s tax system is important when it comes to leveraging all these benefits.
Compliance and Governance
Operating a business through registered subsidiaries means compliance with local Indian laws. However, such compliance is imperative to ensuring that the company operates within local regulatory frameworks and also builds confidence, trust, among Indian partners, customer’s and stakeholders.
We also assist our clients regularly with Compliances for a Private Limited Company in India and Compliances for Subsidiary Companies In India
For any questions/ requirements, please email at [email protected]
- Company Registration in India - March 16, 2026
- Incorporation of a Foreign Subsidiary Company in India - March 11, 2026
- Subsidiary Registration in India: Navigating the Legal Landscape - March 8, 2026