Subsidiary company registration in India- Steps involved in brief
SUBSIDIARY COMPANY
INCORPORATION IN INDIA
There are many options available for foreign
company registration in India like
branch office, liaison office, subsidiary companies etc.
However, one of the most popular and tax efficient
manner of business set up in
India by foreign companies is in the manner of
Subsidiary
Company Registration in India.
Here, parent company holds more than 50% shares of the
Indian company to make it its subsidiary. In case 100% shares of the Indian
company are held by parent company, it is called as wholly owned subsidiary of
its parent company. Here, the status of Indian subsidiary company would be that
of an Indian entity unlike branch office or liaison office, which remains a
foreign entity in India.
Subsidiary company can be in the form of private
limited companies as well as public limited companies.
Steps Involved
in Subsidiary Company Registration in India
Following are the basic requirements and steps
involved in subsidiary company registration in India:
1)
Minimum
2 Directors and 2 Shareholders are required for subsidiary company registration
2)
Out
of same, at least 1 Director must be an Indian Director. There may be any
number of foreign directors
3)
Although
shareholders can be companies also but directors need to be an Individual only.
4)
Local
office address in India is required as registered office
5)
Although
there is no minimum share capital prescribed, however, there must be sufficient
share capital with which an Indian subsidiary is registered.
Normally, the capital should be sufficient to meet day
to day expense of the company for initial 4-6 months till company starts
generating revenue.
6)
First
step is to apply for Digital Signature certificate of all the Directors.
7)
Second
step is to apply for name approval of the proposed company. Here, 2-3 names
along with objects ( nature of business of the company) is applied and any one
Name at the discretion of the ROC/MCA is approved.
8)
Third
step is to apply for final incorporation of the company by drafting the charter
documents like MOA, AOA, filling of ROC forms, applying for Director
Identification numbers,
Applying for PAN and TAN, ESI and PF number of the
company
9)
Finally,
Certificate of Incorporation (COI) is generated and company is incorporated.
10) Once company is
incorporated, it has to apply for opening current account in the bank
11) Then , it may
apply for GST registration, Import Export License and other licenses/approvals
required for running a particular business/profession
12) Within 30 days
of subsidiary company incorporation, the company has to hold board meetings and
appoint first auditors of the company
13) Both the
shareholders have to bring share subscription money into the Indian bank
account and apply for certificate of commencement of business with 60 days of
the incorporation.
14) Post receipt of
share subscription money from the
foreign shareholders, Indian company has to intimate RBI about such receipt by
creating entity master on RBI portal and filing of
15) FIRC, KYC and FCGPR forms ( RBI compliance) and also
file necessary forms with ROC for share allotment and issue share certificates
(ROC compliance)
With all the aforesaid steps, process of subsidiary
company registration in India is
completed.
In case you need any
clarification or need any assistance, please call @ +919899217778 or visit our
website www.ezybizindia.in
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