Foreign Subsidiary Registration Services in India

Foreign Subsidiary Registration Services in India – The government initiatives and favorable market conditions have made India a center of foreign investments. Setting up a foreign subsidiary company could be an exhausting process, especially for foreign investors. Prakasha & Co. offers the best Foreign Subsidiary Registration services in India for all foreign companies interested in establishing a business. These services are highly beneficial in dealing with the unique legal, tax, and employment regulations. Therefore it is important to connect with reliable consultants offering comprehensive assistance for foreign subsidiary registration services. 

The blog will deeply cover the different aspects of Foreign Subsidiary Registration Services to help foreign investors. These services are even more important for businesses looking to expand globally while ensuring a seamless business setup.  Read the blog further to learn more about how the experts at Prakasha & Co. will simplify the complex process of entering new markets and ensure that businesses operate efficiently and compliantly in foreign territories. 

What are Foreign Subsidiary Companies in India?

A foreign subsidiary is a separate branch of any business or organization in a foreign land. The subsidiary can be set up for Multinational Corporations (MNCs), Multinational Corporations (MNCs), Startups, and Nonprofits and NGOs. These subsidiaries need to comply with local laws, tax regulations, and reporting requirements for successfully running their operations.

The foreign subsidiary company should meet the compliances set up by the Indian legal system for the industry of operations, annual turnover, and number of employees. These companies are required to meet the requirements mandated in the laws mentioned below: 

• Companies Act, 2013 – Income Tax Act, 1961
• GST, 2017 – SEBI rules and regulations
• FEMA (Foreign Exchange Management Act), 1999 – RBI compliances etc.

Following these compliances ensures that a foreign company does not violate any law prevalent in India. The foreign subsidiary registration services ensure proper handling of legal and compliance issues. 

Differences Between Types of Foreign Subsidiaries in India

Most of the foreign subsidiaries are either Wholly Owned Subsidiaries or joint ventures. The table below highlights the key differences between both for various aspects. Many foreign company subsidiaries can use the table to make a more informed decision. 

Requirements for Setting Up a Foreign Subsidiary Company in India 

The foreign companies usually set up two types of subsidiaries based on their size and status. The companies can choose between private and public limited entities for setting up a subsidiary in India. These requirements could be legal or financial. The experts at Prakasha & Co. take care of all requirements and ensure a smooth registration process in India. Here is a list of basic requirements needed for foreign subsidiary company registration in India. 

• Choose a suitable business structure Private Limited Company or Limited Liability Partnership (LLP). 
• A minimum of two directors is required, with at least one director being a resident of India
• A wide range of documents varies for Indian resident directors, foreign shareholders, or foreign holding companies. 
• Reservation of the proposed company name with the Ministry of Corporate Affairs (MCA).

How do you register a foreign subsidiary company in India?

Applying for the registration of a foreign subsidiary in India is crucial to obtaining the required rights to start a subsidiary. Here we have listed the steps for registering the foreign subsidiary to minimize the risk of errors or last-minute rush. The steps are given in the right sequence to ensure a seamless registration process. 

Step 1: Gather all the required documents needed to register the foreign subsidiary in India. 

Step 2: Carefully draft a resolution for board approval to establish the subsidiary in India. 

Step 3: The next step is to obtain Consulate attestation, Apostille certification for Hague Convention signatories, or public notary attestation for Commonwealth Group countries.

Step 4: Choose a suitable name for the subsidiary or the foreign subsidiary can also India at the end to the parent company’s name for approval. 

Step 5: After the approval of the name, draft the names of the Memorandum of Association, Articles of Association, and Consent of Directors as per the Indian Companies Act. 

Step 6: The application is submitted online for incorporation after the approval of the name and legalizing all the documents. 

Step 7: The registrar verifies all the documents and ensures compliance with the Companies Act. After reviewing the application a unique Corporate Identification Number (CIN) is issued. 

Best Foreign Subsidiary Registration Services in India With Prakasha & Co. 

Prakasha & Co. is a reputable name for offering reliable foreign subsidiary registration services in India. Our team of consultants has in-depth knowledge of local laws and compliance requirements, ensuring smooth proceedings. We have a team of highly professional and qualified professionals who strive to avoid any penalties and make the subsidiary setup even more cost-effective. The subsidiaries can also benefit by having time to focus on the primary business operations. Therefore, choosing Prakasha & Co. is a reliable way to manage compliance challenges in foreign subsidiary registration in India. 

Contact Prakasha & Co. At 

Address: 188/1, Sahakarnagar, Bangalore-92

Phone: +91 7019 827 351

Email: Prakashaandco@gmail.com