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Online & Hassle-Free! End-to-end guidance for Foreign Subsidiary Company. Government fees extra.
Comprehensive support including all government fees. Guaranteed fast processing time within 7-10 days.
A Foreign Subsidiary in India is an Indian company created and controlled by a parent company from another country. The parent company usually owns more than 50% of the shares, giving it control over major decisions. Under Indian law, this subsidiary is treated as a regular Indian company and must follow all local rules and regulations.
India is one of the fastest-growing economies with 5.9% projected GDP growth in 2025. Setting up a subsidiary here opens access to:
Choose WOS if you want full control. Choose JV if you need local expertise or operate in restricted sectors.
Full authority over operations and decisions. Protect your technology and business strategies.
Parent company's assets are safe. Liability limited to investment in Indian subsidiary.
Tap into India's 1.4+ billion consumer market and skilled talent pool at competitive costs.
Build strong brand presence. Customers trust registered Indian companies more.
Double Tax Avoidance Agreements with 90+ countries. Profits taxed only once.
Take loans from Indian banks. Raise money from local investors.
Minimum 2 directors required for private limited company
At least 1 resident director (lived in India 182+ days in last year)
Minimum 2 shareholders required
Foreign parent company can be main shareholder
Second shareholder can be nominee from parent company
No minimum capital required by law
Can start with any amount suitable for business
Common to start with ₹1,00,000 authorized capital
Physical address in India required
Can be rented or owned property
Must have within 30 days of company formation
Digital Signature Certificate (DSC) for all directors
Director Identification Number (DIN) - unique ID for directors
Use RUN service to check name availability
Name should include parent company name (e.g., "ABC India Private Limited")
Name reserved for 20 days
MOA (Memorandum of Association): Company objectives
AOA (Articles of Association): Internal rules
Must be signed by foreign parent representatives
Single online form for everything:
Official "birth certificate" of your company
Includes PAN and TAN details
Legal proof of registration
Name Reservation (RUN): ₹1,000
Stamp Duty: Varies by state
PAN & TAN: ₹143
DSC per director: ₹1,000 - ₹2,500
For legal/document help:
₹25,000 - ₹1,00,000+
Depends on complexity and firm experience
Annual compliance filings
Auditor fees (mandatory yearly audit)
Registered office rent (if applicable)
Professional services (accounting/tax)
Missing compliance deadlines can lead to heavy fines and penalties. Stay organized with deadlines.
| Feature | Foreign Subsidiary | Branch Office | Liaison Office |
|---|---|---|---|
| Legal Status | Separate Indian company | Extension of parent company | Extension of parent company |
| Liability | Limited (parent assets protected) | Unlimited (parent fully responsible) | Unlimited (parent fully responsible) |
| Allowed Activities | Any business like local company | Only parent company's business | No business, only marketing |
| Credibility | High (long-term commitment) | Moderate (limited presence) | Low (just representative) |
| Best For | Full business operations & growth | Project execution in India | Market research & contacts |
For serious business operations in India, a Foreign Subsidiary offers the best combination of control, protection, and flexibility.
Connect with Compliance 360 and let our experts handle the legal hassle while you grow your business.
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| Factor | Branch Office | Subsidiary Company |
|---|---|---|
| Legal Status | Extension of foreign company | Separate legal entity |
| Liability | Parent company has unlimited liability | Limited liability for parent |
| Activities Allowed | Limited activities (import/export, consultancy, research) | Any lawful business activity |
| Taxation | 40% + surcharge + cess | 25-30% (based on turnover) |
| Ownership | 100% owned by parent | Can have Indian partners |
| Compliance | Less compliance | More compliance requirements |
| Property Ownership | Cannot own property | Can own property |
| Profit Repatriation | Allowed after taxes | Allowed as dividends |
Our specialists ensure your foreign investment complies with RBI and FEMA regulations right from incorporation.
We follow a structured process to prepare and file documents correctly, reducing delays and rejections.
From incorporation forms to regulatory filings, we handle all paperwork with precision and care.
You get clear pricing with a full cost breakup, ensuring there are no hidden or unexpected charges.
We support you with bank account opening, INC-20A filing, and initial compliance requirements.
Even after registration, we help you stay compliant with annual filings and regulatory updates.
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