Indian Subsidiary Registration – Foreign Company Subsidiary in India
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Overview of Indian Subsidiary Registration
An Indian subsidiary is a separate legal entity incorporated under the Companies Act, 2013, which is owned and controlled by a foreign parent company. This corporate structure allows international companies to operate in India with full legal and operational status, enjoy tax benefits, limited liability protection, and access to one of the fastest-growing markets in the world.
Foreign companies often choose a subsidiary structure to gain credibility, control operations locally, and fully leverage India’s business ecosystem with flexibility and compliance.
What Is an Indian Subsidiary?
A subsidiary company, as defined under Section 2(87) of the Companies Act, 2013, is one where the parent (holding) company:
Controls the composition of the Board of Directors, or
Owns more than 50% of the total share capital (equity and convertible preference shares).
Even if the subsidiary is wholly owned (100% shareholding) or partly owned, it remains a distinct legal entity separate from the foreign parent—responsible for its own contracts, liabilities, and statutory filings.
Types of Subsidiaries in India
1. Wholly Owned Subsidiary (WOS)
The foreign parent company holds 100% ownership of the Indian entity.
It provides complete control and independence in management under Indian law.
2. Partially Owned Subsidiary / Joint Venture (JV)
Foreign company holds more than 50% shares, while Indian partners hold the remainder.
Useful when strategic local partnerships are desirable.
What all you get
- DIN for 2 Directors
- MOA + AOA
- Customized Incorporation Master File
- Bank Account Opening Support
- Digital Signature Token for 2 Promoters & 1 witness
- Incorporation Certificate
- Company PAN Card
- checked icon Company Name
- PF + ESIC + Professional Tax
- Company TAN/TDS
Why Choose Taxhit Consultancy?
Complete end-to-end Indian subsidiary registration services
MCA filings, document drafting & compliance handling
Foreign document legalization guidance
Post-incorporation statutory and tax support
Why Register an Indian Subsidiary?
Direct Access to Indian Market
Gain local recognition and presence to engage in commercial activities, distribution, hiring, and operations seamlessly within India.
Separate Legal Entity & Limited Liability
A subsidiary shields the foreign parent’s assets from risks arising in India, as liabilities are limited to the investment in the Indian company.
100% Foreign Direct Investment (FDI)
India permits 100% FDI via the automatic route in most sectors, making it easy to incorporate without extensive governmental approvals.
Tax & Repatriation Benefits
Subsidiaries are taxed like domestic companies and may leverage DTAA (Double Taxation Avoidance Agreements) to reduce withholding taxes on dividends and repatriated income.
Operational Independence
A subsidiary can enter into contracts, open bank accounts, hire staff, own assets and undertake business operations independently under Indian law.
Eligibility Criteria
To register an Indian subsidiary for a foreign company:
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Foreign parent company must be legally incorporated in its home jurisdiction.
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Must appoint minimum two directors (in case of Private Limited subsidiary) and at least one Indian resident director.
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Must have a registered office address in India.
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The proposed company name must be unique and approved by the Registrar of Companies (ROC).
Documents Required
For Foreign Parent Company
Certified copy of Certificate of Incorporation
Board resolution approving Indian subsidiary formation
Power of attorney appointing authorized representatives
Foreign parent company’s constitutional documents.
For Directors
Passport (for foreign directors)
Address proof (notarised & apostilled if foreign)
Indian resident director’s PAN, Aadhaar or utility bill
Digital Signature Certificates (DSC) for filing. RPMG Associates
Registered Office Proof
Electricity/Gas/Telephone bill (not older than 60 days)
Rent/lease agreement + NOC from landlord.
Step-by-Step Registration Process
Step 1: Choose Entity Structure
Decide whether the subsidiary will be a Private Limited Company or Public Limited Company based on your business needs.
Step 2: Apply for Digital Signature Certificates (DSC)
Required for all directors to sign incorporation documents online.
Step 3: Director Identification Number (DIN)
Every director must have a DIN, obtained through MCA filings.
Step 4: Company Name Reservation
File SPICe+ Part A to reserve a unique company name—potentially including the parent company’s name plus “India” or relevant suffix.
Step 5: File SPICe+ Part B for Incorporation
Submit application for incorporation along with:
MoA & AoA
Director consent & declarations
Registered office proof
Foreign parent resolution & POA.
Step 6: Certificate of Incorporation
Upon verification by the MCA, the ROC issues the Certificate of Incorporation with the Corporate Identity Number (CIN).
Step 7: Post-Incorporation Formalities
Apply for PAN & TAN
Open corporate bank account
Register for GST if applicable
Statutory audit appointments and compliances.
Frequently Asked Questions (FAQ)
What is an Indian subsidiary?
An Indian subsidiary is a separate legal entity incorporated in India and controlled by a foreign parent company that owns over 50% of shares.
Can it be wholly owned by the foreign parent?
Yes, subsidiaries can be 100% owned by the foreign company, especially under the automatic FDI route.
Is an Indian resident director mandatory?
Yes, every Indian company must have at least one Indian resident director.
Is there a minimum capital requirement?
No minimum capital requirement applies, but share capital should be appropriate for business.
What taxes does a subsidiary pay?
Subsidiaries follow Indian corporate tax laws, typically around 25–30% plus cess and surcharge.