How to Open an Indian Subsidiary Business: A Complete Guide for Foreign Companies

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Indian subsidiary is a company incorporated in India but owned (either wholly or partially) by a foreign parent company. It is registered as a Private Limited Company under the Companies Act, 2013 and has to comply with Indian laws, including foreign direct investment (FDI) norms and tax r

India is one of the fastest-growing economies in the world, and its large consumer market, skilled workforce, and improving ease of doing business have attracted many international companies. If you’re a foreign business owner or investor looking to establish a presence in India, setting up a subsidiary is a highly effective and strategic option.

To open Indian subsidiary business, you need to understand the legal structure, compliance requirements, and registration process. A subsidiary is treated as a separate legal entity from its parent company, giving you the flexibility to conduct operations in India while protecting your foreign assets. With the right guidance, especially from experts like ebizfilling, the setup can be seamless and stress-free.

What Is an Indian Subsidiary?

An Indian subsidiary is a company incorporated in India but owned (either wholly or partially) by a foreign parent company. It is registered as a Private Limited Company under the Companies Act, 2013 and has to comply with Indian laws, including foreign direct investment (FDI) norms and tax regulations.

There are two main types of subsidiaries:

  • Wholly-Owned Subsidiary (WOS): 100% shares are held by the foreign parent company.

  • Joint Venture: Shares are split between the foreign company and Indian partners.

Benefits of Opening an Indian Subsidiary

  • 100% Foreign Ownership Allowed in most sectors.

  • Limited Liability Protection for parent company and shareholders.

  • Separate Legal Entity status for independent operations.

  • Access to Local Market and business-friendly policies.

  • Eligible for Government Schemes and incentives.

Documents Required

To open an Indian subsidiary, the following documents are typically required:

  • Identity and address proof of foreign directors.

  • Board resolution from the parent company authorizing the setup.

  • Memorandum and Articles of Association (MOA & AOA).

  • Proof of registered business address in India.

  • Director Identification Number (DIN) and Digital Signature Certificate (DSC).

  • PAN and TAN for tax registration.

At ebizfilling, our experts ensure all documents are prepared, reviewed, and submitted in compliance with the Ministry of Corporate Affairs (MCA) and Reserve Bank of India (RBI) guidelines.

Step-by-Step Process to Open Indian Subsidiary Business

Here’s how ebizfilling simplifies the process:

Step 1: Name Approval

We help you choose a unique company name and apply for approval through the RUN (Reserve Unique Name) service.

Step 2: Obtain DIN & DSC

Directors must obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC) to sign electronic forms.

Step 3: Incorporation Filing (SPICe+ Form)

Our team prepares and files the incorporation documents including MOA, AOA, and SPICe+ form with the MCA.

Step 4: PAN, TAN & Bank Account

Once the incorporation certificate is issued, we assist in applying for the company's PAN, TAN, and opening a business bank account.

Step 5: RBI & FDI Compliance

We handle compliance reporting to the RBI, especially if you're bringing in foreign funds as FDI, and guide you through necessary filings like Form FC-GPR.

Timeline & Cost

The incorporation process usually takes 10–15 working days, depending on document readiness and government approvals. With ebizfilling, you receive end-to-end support at a cost-effective price, with no hidden charges.

Why Choose ebizfilling?

  • Expertise in FDI & Compliance: We specialize in helping foreign companies navigate Indian regulations.

  • Transparent Pricing: No surprises, only clear packages.

  • Dedicated Manager: One point of contact for all queries.

  • Quick Turnaround: We value your time and ensure prompt processing.

Final Thoughts

To open Indian subsidiary business, you need strategic planning, legal clarity, and regulatory know-how. Partnering with a reliable service provider like ebizfilling ensures you don’t miss any critical step or deadline.

We’re here to help you launch confidently, grow quickly, and operate compliantly in one of the world’s most dynamic markets. Let ebizfilling be your guide in India’s vibrant business landscape.

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