{"id":8183,"date":"2023-11-20T17:14:37","date_gmt":"2023-11-20T11:44:37","guid":{"rendered":"https:\/\/www.startupfino.com\/blogs\/?p=8183"},"modified":"2024-03-30T20:57:15","modified_gmt":"2024-03-30T15:27:15","slug":"procedure-of-indian-subsidiary-company-registration","status":"publish","type":"post","link":"https:\/\/www.startupfino.com\/blogs\/procedure-of-indian-subsidiary-company-registration\/","title":{"rendered":"Procedure of Indian Subsidiary Company registration"},"content":{"rendered":"\n

A company in India that operates as a subsidiary is essentially a sister company or a subsidiary of its parent company. The entity exercising control over it is referred to as the parent or holding company. The parent company oversees the subsidiary, whether in part or in full control.<\/p>\n\n\n\n

In this blog, we shall see the details of the procedure of Indian subsidiary company registration<\/strong>. This includes information on the necessary documentation, the various types of subsidiaries, and the procedures involved in its establishment.<\/p>\n\n\n\n

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Meaning of Subsidiary Company<\/h2>\n\n\n\n

In the business sector, a subsidiary company is its own legal entity, under the ownership of a parent company.<\/p>\n\n\n\n

It’s important to be noted that a subsidiary company, particularly one linked to a foreign parent company, functions independently as a distinct legal entity. As such, it is obligated to adhere to the regulations and compliances of the country in which it is situated or registered.<\/p>\n\n\n\n

Advantages of Indian Subsidiary Company Registration<\/h2>\n\n\n\n

Before going into the procedure of Indian subsidiary company registration, let us look at its advantages. When considering the establishment of an Indian subsidiary company and subsidiary company registration, there are several advantages in terms of business compliances. The following key benefits apply in the context of an Indian subsidiary:<\/p>\n\n\n\n

1. Independent Legal Structure:<\/strong> The Indian subsidiary operates as an independent and separate legal entity regulated under Indian commercial legislation.<\/p>\n\n\n\n

2. Transfer of Shares:<\/strong> Shareholders have the flexibility to transfer or exchange shares to another party or individual by completing a share transfer form and a share certificate.<\/p>\n\n\n\n

3. Acquire Property in India:<\/strong> As an independent structure, the subsidiary is permitted to acquire properties in India.<\/p>\n\n\n\n

4. Incorporation with Foreign Direct Investment: I<\/strong>ndian subsidiary companies can seamlessly incorporate with foreign direct investment, which is widely permitted across various economic activities in the country.<\/p>\n\n\n\n

Types of Subsidiaries in India<\/h2>\n\n\n\n

Under the revised Companies Act of 2013<\/a><\/strong>, an Indian subsidiary is characterised by a foreign legal entity owning a minimum of 50%<\/strong> of the total share capital. This definition extends to clarify that the foreign company possesses legal rights and authorities concerning the structure of the board of directors of the subsidiary company.<\/p>\n\n\n\n

Documents Required for Indian Subsidiary Company Registration<\/h2>\n\n\n\n

The important list of documents needed to undergo the procedure of Indian subsidiary company registration are as follows:<\/p>\n\n\n\n

1. For Office Address:<\/strong><\/p>\n\n\n\n