Foreign Subsidiary Registration

Foreign Subsidiary Meaning

A foreign subsidiary company is a company in which at least 50% of equity is held by a corporation situated in a foreign country. The foreign company involved in this instance is known as the holding company or the parent company. To be a foreign subsidiary company within India, the company must be registered in India. It doesn't matter what location the parent business is registered in. Many aspects of the business determine compliances. One should know what requirements have to be based on the kind of business, the field of operation, the annual turnover, and the number of employees.

Documents Required

The documents required for the foreign subsidiary registration process are listed below:

1. PAN card information of all shareholders and directors
2. Address Proof of Directors and shareholders that should not be more than two months older. It could be a Bank Statement Copy, Telephone Bill Copy, Electricity Bill Copy, or any Utility Bill Copy.
3. Documents from directors of foreign countries should be notarized and apostilled in their home country.
4. Passports and photos of shareholders and directors
5. Identity Proofs such as Aadhaar Card, Driving License, Voter Id of all the directors, partners and shareholders.
6. MOA and AOA of the Company
7. DIN, or Director Identification Number for authorized directors and partners
8. DSC of designated directors or partners
9. The parent entity or the foreign entity must supply the necessary documents if the Indian company becomes a subsidiary of the Foreign entity.
10. The No Objection Certificate (NOC) by the owner of the property who is the owner of the place of business
11. Certificate of incorporation given by the government of the country.
12. Resolution from a foreign firm is necessary for opening the subsidiary business in India with the mention of the name of the representative authorized by the company.
13. For residence proof, such utility bills like gas, water, telephone or electricity bill in the name at the Registered Office.
14. A certified translation document is also required if the documents are not in English.

How to Incorporate a Foreign Subsidiary in India?

Step-1

Two directors need to apply for a Digital Signature Certificate (DSC) to begin the incorporation process. It is a tool by which they sign digital documents. It is a safe and authentic method to sign government documents electronically. All other directors need to apply for a Director Identification Number (DIN). DIN is a short form as Director Identification Number. It is an identification number assigned to an individual designated as the director for the company. Directors of every company will have a different DIN number. If someone is a director of a different company and already has authentic DSC and DIN and need not apply again. The process can take up to a day.

Step-2

The foreign entity has to adopt a board resolution stating that the company's board of directors has endorsed and ratified the opening of an Indian branch of that foreign company. It is important to note that this board resolution and other documents must be notarized and apostilled by the Indian Embassy.

Step-3

The business should obtain approval for its name from the government. The company can have the same name that the parent firm does, but by adding "India" in its name. It is important to note that the name should be unique, not yet trademarked, and must not contain phrases or words that have been prohibited in the RBI. If the parent company or foreign corporation has an approved trademark, you can use it for the subsidiary company, which is then incorporated in India. A Private Limited Company must be required to include Suffix Private Limited (Pvt. Ltd.) in the middle of their name.

After submitting the name reservation for the company, it will take two days for it to get approved. If the name is not approved for any reason, it is necessary to apply for the same name using an alternative name.

Step-4

Frame Memorandum of Association and Article of Association of the subsidiary company and deliver the director's papers to the Ministry of corporate affairs.

Log in to the Ministry of Corporate Affairs (MCA) portal and hit "RUN" under MCA services. An online application form is created for applicants to fill in. Information to be included on the form are:

• Type of entity
• Corporate Identification Number (CIN)
• Names proposed for the name.
• A document such as the NOC trademark documents an apostille copy of a resolution of the foreign company.
• The applicants can reserve their chosen name in the coming 60 days. However, applicants must pay an additional cost of the same amount for making a reservation.

Step 5

Apply for PAN and TAN. To facilitate business, the government offers registration for ESI, EPFO, PF, PT and selection of the desired Banker on the incorporation form in itself. It is possible to use this option to expedite the post-incorporation process.

Step 6

The incorporation certificate is issued after it is confirmed that the ROC for the applicant has been verified.

Our Assistance

Registering the subsidiary business for a subsidiary company in India is a simple procedure. You can easily establish a subsidiary in India in just 30 days. The entire process can be completed in 15 days if all documents are properly filed. We at Regalguru make the procedure for incorporation of foreign subsidiaries in India seamless and interactive in conjunction with government officials by handling all documentation. We can provide precise information regarding the process of incorporation to establish reasonable expectations.