Indian Subsidiary Company Registration
India's large consumer base, fast-growing digital infrastructure, and investor-friendly foreign investment policies make it one of the most attractive markets for global businesses to enter. Registering an Indian subsidiary company is one of the most common ways for foreign businesses to establish that presence.
Written & reviewed by Nikita Bhatia, FCA - Chartered Accountant (14+ years) & Company Secretary, Co-founder of VenturEasy
Last updated 25 August 2026
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Overview
Incorporating a subsidiary company in India enables the foreign parent company to set up an independent legal business entity but retain control over its operations.
If you want to register a company in India as a foreign investor, understanding the registration process, compliance requirements, and benefits is important. This guide explains everything you need to know about Foreign Subsidiary Registration in India, including eligibility, documents, steps, and advantages.
What is a Subsidiary Company?
A subsidiary company is a separate business entity that is more than 50% owned or controlled by a larger company known as a parent or holding company. As per the Companies Act, a company becomes a subsidiary if the holding company satisfies at least one of these conditions:
- Board Control: The holding company controls the composition of the subsidiary's Board of Directors.
- Voting Power or Share Capital: The holding company exercises or controls more than 50% (more than one-half) of the total voting power or total share capital.
The subsidiary company is an independent legal entity registered under the Companies Act, 2013. International businesses are able to perform commercial activities in India through this structure, which helps in ease of business, reduces risk, and retains operational independence.
This structure is common in industries like Information Technology (IT), manufacturing, consulting, e-commerce, and Fintech.
Structure of a Subsidiary Company
A subsidiary company is usually established as a Private Limited Company in India. The following are some of the essential features:
Minimum Two Shareholders
Shareholders can be either individuals or entities, or a combination of both. There is no restriction on the residential status of shareholders.
Minimum Two Directors
Both should be individuals, and at least one should be a resident of India.
Local Indian Registered Office
The registered office can be a commercial office space or any premises owned by the director or their friends/relatives.
Share Capital
There is no minimum capital required to form a Private Limited Company in India. However, the general practice is to incorporate the company with a minimum of INR 1 Lakh, based on the monetary requirements of the business.
Such requirements guarantee that the company will legally conduct its business and be in accordance with Indian company law.
Advantages of Registering an Indian Subsidiary Company
Foreign companies may choose to establish an Indian subsidiary for several strategic and operational reasons. Key advantages include:
Market Expansion
Enables the foreign company to establish a formal presence and expand its operations in the Indian market.
Legal Protection
The subsidiary is a separate legal entity, providing a degree of legal and financial separation from the foreign parent company.
Operational Flexibility
Allows the foreign company to structure and manage its Indian operations in a manner suited to its business requirements, subject to applicable Indian laws and regulations.
Taxation
A subsidiary company is registered as a separate legal entity and is taxed at the same rate as any other domestic company in India - not at the higher rate applicable to foreign companies and foreign branch offices in India.
FDI Compliance
Foreign investment is permitted in a Private Limited Company, subject to applicable sectoral conditions, making it easier for foreign companies to infuse capital into the Indian business as and when needed.
Governing Regulatory Body for Company Registration in India
Company registration in India is primarily carried out electronically through the Ministry of Corporate Affairs (MCA). The incorporation application, along with the prescribed documents and declarations, is submitted to the Registrar of Companies (RoC) for examination.
The RoC reviews the application and supporting documents for compliance with the applicable legal and regulatory requirements. Once the requirements are satisfactorily met, the RoC approves the incorporation and issues the Certificate of Incorporation.
The Certificate of Incorporation serves as evidence that the company has been legally incorporated and is recognised as a separate legal entity under Indian law.
Procedure for Registering a Subsidiary Company in India
The registration of a subsidiary company in India involves the following steps:
Name Approval
The first step towards company registration is reserving the company name. In the case of a foreign subsidiary, it is permissible to use the same name as that of the parent company with the addition of the word "India" to it. The name is approved, provided it is not identical to existing entities or considered undesirable by law.
Procurement of DSC
Parallel to the name approval, the Digital Signature Certificate (DSC) is procured for the proposed directors of the company. This DSC is required to file the incorporation application digitally and will also be used for future compliance reporting.
Incorporation Application
This is the final step in the company registration process. The approved name is reserved for a period of 20 days, and the incorporation application has to be filed within this period. It requires filing the Memorandum and Articles of Association of the company, along with various other documents duly executed by the proposed directors and shareholders.
Certificate of Incorporation
Once the company is incorporated, you will receive the Certificate of Incorporation, PAN and TAN for the company. All documents are issued digitally by the Ministry, based on which you can proceed to open a bank account in India. Important registrations under labour laws (ESIC, PF) and tax identification numbers (PAN, TAN) are also issued along with the incorporation.
Documents Required for Subsidiary Company Registration in India
Proper documentation is essential for the smooth registration of a Foreign Subsidiary in India.
I. For Directors and Shareholders
- Passport size photograph
- Copy of PAN card (mandatory for Indian residents)
- Copy of passport (mandatory for foreign residents)
- Copy of passport, voter ID, or driving license
- Bank statement or utility bill showing their address - not older than 2 months
II. For Foreign or Parent Company
- Certificate of Incorporation
- Bank statement or utility bill as proof of address - not older than 2 months
III. For Indian Company
- Address proof of registered office (Sale Deed or Rental Agreement)
- Utility bill (electricity, telephone, gas, etc.) for the premises - not older than 2 months
- NOC for use of the premises as registered office
Note: All documents of the foreign company and foreign residents must be notarized by a public notary and apostilled/consularized by the concerned authority in the foreign country.
Cost of Indian Subsidiary Company Registration
The fee for registering an Indian subsidiary company may differ from state to state, based on several factors, such as:
- Professional Fees (generally fixed)
- Registration fees by MCA
- Stamp duty on Share Capital
- Digital signature and DIN charges
How Can VenturEasy Help You?
VenturEasy, through its team of expert professionals, can help you with the end-to-end process of subsidiary company registration in India and its post-incorporation support and compliance.
For the registration, all documents will be collected digitally through our portal as soon as the process is initiated. We collect and review the documents in advance so that there is no glitch at the time of final submission.
All documents will be required in soft copy only. There is no requirement for any physical presence in the entire process.
Beyond Registration: Ongoing Compliance, Tax and Audit Support
Once your subsidiary company is registered, VenturEasy can support you in running the company so that it remains compliant with Indian laws and regulations. Post-incorporation and ongoing services which VenturEasy provides to foreign-owned Indian subsidiaries include:
Ongoing Support Beyond Registration
- RBI/FEMA filings such as the FC-GPR return after share allotment, and other FEMA/RBI compliances
- Annual ROC filings and secretarial compliance
- Income tax advisory and return filing
- GST registration and filing
- TDS compliance and filing
- Bookkeeping and accounting
- Statutory, tax, and internal audits
Frequently Asked Questions (FAQs)
An Indian subsidiary is a company incorporated and registered in India that is controlled by a foreign or Indian parent company. Typically, the parent company holds more than 50% of the subsidiary's share capital or otherwise exercises control over it. The subsidiary is a separate legal entity governed by Indian laws.
Yes. A foreign company can establish a subsidiary in India, subject to the applicable foreign direct investment (FDI) regulations. In many sectors, 100% foreign ownership is permitted under the automatic route, without prior government approval, subject to applicable conditions.
The incorporation process generally takes around 25-30 working days, subject to timely submission and verification of documents, name approval, availability of required information, and the processing timelines of the relevant government authorities.
The key requirements for incorporating a private limited subsidiary company in India include:
- Minimum 2 directors
- Minimum 2 shareholders
- At least 1 director who is resident in India
- A registered office in India
- No mandatory minimum share capital
The key documents generally include:
- Identity and address proof of the Indian and foreign directors and shareholders
- Certificate of Incorporation and address proof of the foreign parent company
- Board resolution authorizing the investment and incorporation of the Indian subsidiary
- Registered office address proof for the Indian company
Foreign documents may require notarization and/or apostillation/consularization, as applicable.
A subsidiary is a separate legal entity incorporated in India, with its own assets, liabilities, and legal identity. A branch office, on the other hand, is an extension of the foreign company and does not have a separate legal identity from its parent company. A subsidiary generally provides greater flexibility for carrying out business activities in India, subject to the applicable laws and FDI regulations.
Not necessarily. Foreign investment in many sectors is permitted under the automatic route, meaning prior approval from the Reserve Bank of India (RBI) or the Government is generally not required, subject to applicable conditions. However, in certain sectors, ownership structures or investment arrangements may be subject to additional restrictions or require prior Government approval.
The cost depends on several factors, including government and statutory fees, authorised share capital, professional fees, documentation requirements, and the scope of services required. The overall cost may therefore vary depending on the proposed business, ownership structure, and services involved.
After incorporation, an Indian subsidiary is required to complete various statutory and regulatory compliances. These may include:
- Opening an Indian corporate bank account
- GST registration, where applicable
- Reporting foreign investment and allotment of shares to the foreign parent with the RBI, including Form FC-GPR, where applicable
- Maintenance of books of account
- Annual statutory audit
- ROC/MCA annual filings
- Income tax return filing
- GST and TDS returns, where applicable
- Transfer pricing compliance, where transactions are undertaken with associated foreign enterprises
The exact compliance requirements depend on the nature and scale of the subsidiary's operations.
VenturEasy supports businesses throughout the lifecycle of their Indian subsidiary - not just at the incorporation stage. Once the subsidiary is incorporated, we also assist with accounting, annual ROC/MCA compliance, income tax and GST/TDS filings, transfer pricing compliance, and statutory audit, as applicable.