The time required for a foreign company to establish a subsidiary in India depends on a variety of factors, including the kind of subsidiary, the nature of the business, and the efficiency of the registration procedure. In most cases, the incorporation process requires approximately 2-3 months.
Subsidiary of Foreign Company
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A foreign subsidiary company is any company, where 50% or more of its equity shares are owned by a company that is incorporated in another foreign nation. The said foreign company in such a case is called the holding company or the parent company.
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Introduction
Subsidiary of Foreign Company
India is an attractive destination for global investors, bursting with numerous opportunities of foreign investment. Its vibrant economy ever-expanding consumer base, and dynamic markets have transformed major cities like Chennai, Delhi, Noida, Bangalore, and Mumbai into thriving hubs of foreign subsidiary companies. These companies not only receive support from beyond the borders but also within Indian territories through an easy and streamlined registration process.
So, whether you’re registering a subsidiary in India or a brand new foreign company, rest assured of a smooth incorporation process! Initial steps to start a subsidiary in India involve assessing the limits and routes of foreign investment in your sector. Next, you need to understand the legal requirements for setting up a wholly-owned subsidiary in India. Our expert and skilled team of CA, CS, and attorneys will take it from here and provide a smooth, hassle-free journey of incorporation.
Benefits
Benefits of Establishing a Manufacturing Subsidiary in India
Income Tax
Income Tax is Only 15%. World's Best Tax Rate
Easy Availability
Easy Availability of Skilled Labour
Fastest Economy
One of the World's Fastest Economy
Great Urban
Great Urban & Industrial Infrastructure
Process
Process to Subsidiary of Foreign Company
Document Checklist
Documents Required for Reserve Company Name
Passport size photos of directors
Address proof of directors
Specimen signature
Self declaration about your directorship in other companies
Rent agreement of your registered office
No objection certificate from the owner of the property of the property
Faq
Frequently Asked Questions (FAQ)
Yes, a foreign company can establish a subsidiary in India without having a physical presence there by appointing an authorised representative.
Some of the benefits of establishing a subsidiary in India include access to a huge and booming market, lower operating costs, and a favourable regulatory environment for foreign investments.
Foreign companies establishing subsidiaries in India may attract corporate income tax, withholding tax, and other taxes. To avoid double taxation, India has signed double taxation avoidance treaties with a number of countries.
A wholly-owned subsidiary in India is a company where the foreign company holds the entire share capital.
The timeline for setting up subsidiary in India may vary based on the accuracy of the application filed and documents submitted. However, usually it takes approximately 15 to 25 days.
Indeed, a subsidiary company in India is required to comply with Indian Accounting Standards. Additionally, these subsidiaries are subject to audit in accordance with the regulations set out by the Indian authorities. By complying with these standards and undergoing audits, subsidiaries can ensure transparency, accountability, and compliance with Indian regulatory requirements.
Did you know that a subsidiary company in India has its own legal identity, completely distinct from its parent? It’s fascinating how it’s treated as an Indian resident for tax purposes and gets taxed on its global income. On the contrary, a branch office is an extension of the foreign parent company. It is only taxed on the income it earns within India.
Yes, according to the regulations, at least one director of the subsidiary company is required to be a resident of India. The director needs to have lived in the country for more than 120 days in the last financial year.
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