When an Operational Company starts another company under its brand name at different locations to expand its business is considered as a Parent Company, while the newly established company is known as its Subsidiary. Registering a Subsidiary company in a Foreign country is known as Foreign Subsidiary Registration. The registration process for each foreign subsidiary company varies depending on the country where it's going to be registered. Let’s understand the requirements in detail to start a Foreign Subsidiary Company in India.
To Start a Foreign Subsidiary Company in India, the following is the list of basic requirements mandatory by the Government of India:
To start a foreign subsidiary in India, there is no minimum capital required. Parent Companies can start their subsidiary company with any minimum investment.
A foreign subsidiary in India must have a minimum 2 shareholders if establishing as a Private Limited Company.
No restriction on holding shares, a Parent Company can hold 100% or partially shares in its subsidiary company.
A Foreign subsidiary must have a minimum of 2 Directors and out of these, one must be an Indian Resident.
In order to start a foreign subsidiary company in India, a Physical registered office must be in India
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| Concerned Person | Documents Required |
|---|---|
| Indian Director/Shareholder |
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| Foreign/Parent Company |
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| Authorized Representative of the Foreign Company |
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| Registered Office Address (India) |
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| Tech Integration |
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Here is the list of what you will get from Startup Movers:
1. Pre-Incorporation Deliverables:
2. Post-Incorporation Deliverables:
Check out hassle-free steps to register your Foreign Subsidiary in India:
To register your Foreign Subsidiary in India, fill up the enquiry form and wait for one of our advisor’s calls who will understand your requirements.
After the detailed call/meet discussion, you need to submit the documents as the checklist for foreign subsidiary registration.
Next, our team will proceed with the Company's Name Reservation process. A company’s name is its identity, so it should be unique and not already registered with the MCA.
After reserving your name, you need to pay the professional fee, and our team will proceed with the Foreign Subsidiary Registration Filing Work.
At last, MCA will look over the application and provide the Certificate of Incorporation on the final approval.
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Answering your most common OPC questions
No, Subsidiary companies are not allowed to hold shares in their Parent Company under the Companies Act, 2013.
Yes, a Parent Company can hold partially or even 100% shares in its subsidiary company.