Foreign Subsidiary Company registration
Meaning – Subsidiary company:
A subsidiary is a company with voting stock (that is more than 50%) controlled by another company, usually referred to as the parent company or the holding company. In cases where a parent company owns a foreign subsidiary, the subsidiary must follow the laws of the country where it is incorporated and operates. Hence, if a foreign company is incorporated in India, then it has to follow the applicable laws in India.
How to Register a Subsidiary Company in India?
According to FEMA guidelines, Foreign Direct Investment (FDI) is not allowed in case of Proprietorship, Partnership Firm and One Person Company. Though investment in LLP’s is allowed, but it requires prior approval of the RBI.
- Foreign Subsidiary Company registration
Documents for Subsidiary Company Registration
The first step towards Company Registration is reserving the Company name. In case of a foreign subsidiary, it is permissible to use the same name as that of the parent company with the addition of the word “India” to it.
Procurement of DSC
In parallel, the Digital Signature Certificate (DSC) will be procured for the proposed directors of the Company. This DSC is required to file the Incorporation application digitally and will also be used for future compliance reporting.
This is the final step in the Company Registration process. It requires filing of the Memorandum and Articles of Association of the Company along with various other documents duly executed by the proposed directors and shareholders.