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Compliance360 Services

Secure & Fast Indian Subsidiary
with Compliance360 Starting from 9,499 + government fees

Stay compliant and run your business smoothly. Our end-to-end assistance, smart solutions tailored to your business, and 100% online paperless process ensure zero hassle and quick turnaround for your Indian Subsidiary.

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Price Plans

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Transparent pricing and full support for Indian Subsidiary Registration

Indian Subsidiary Company Incorporation

₹9,499

/One Time

Expand your global business presence in India with ease. We provide complete support for setting up an Indian Subsidiary Company, ensuring a smooth and compliant incorporation process.

Company Name Approval (RUN / SPICe+)
Digital Signature Certificate (DSC) for Directors
Director Identification Number (DIN)
Drafting of MOA & AOA
Incorporation of Indian Subsidiary Company
PAN & TAN of Company
FEMA & RBI basic compliance guidance
Professional Support throughout the process
Indian Subsidiary Company Incorporation + Compliance

₹14,499

/One Time

Set up your Indian Subsidiary Company along with complete compliance and regulatory support. We ensure your business remains compliant with Indian laws while you focus on growth and operations.

Everything in Indian Subsidiary Company Incorporation Plan
GST Registration
Accounting & Bookkeeping Setup Guidance
ROC Compliance & Filings
Annual Compliance (AOC-4, MGT-7)
FEMA & RBI Compliance Support (as applicable)
Basic Taxation & Advisory Support
Due Date Alerts & Compliance Calendar
Dedicated Support for 1 Year

What is an Indian Subsidiary Company?

An Indian Subsidiary Company is a business entity registered under Indian law where a foreign parent company holds a majority stake (more than 50% of shares) or controls the Board of Directors. It operates as an independent legal entity governed by Indian regulations while remaining under the foreign parent's control.

Key Legal Status:
  • Separate Legal Identity: Distinct entity that can own property, enter contracts, and be sued independently
  • Limited Liability: Parent company's risk limited to its investment amount
  • Governed by Indian Laws: Must comply with Companies Act, 2013, FEMA, RBI regulations
  • Perpetual Succession: Company continues regardless of ownership changes

Types of Subsidiary Companies

Wholly-Owned Subsidiary
  • 100% ownership by parent company
  • Allowed only in sectors permitting 100% FDI
  • Complete control and decision-making
  • Simpler internal setup
Partially-Owned Subsidiary
  • Parent owns 50-99% shares
  • Other shareholders may influence decisions
  • Shared risks and responsibilities
  • More complex due to multiple parties
Other Subsidiary Categories:
Operational Subsidiary

Handles specific day-to-day business operations

Strategic Subsidiary

Created for market expansion and new business ideas

Joint Venture Subsidiary

Owned by multiple companies sharing resources

Advantages of Registering an Indian Subsidiary

Market Access & Growth

Access to India's vast, fast-growing market with 1.4+ billion consumers and regional expansion opportunities

Limited Liability Protection

Parent company's liability limited to investment amount, safeguarding global assets

Financial Benefits

Tax incentives, lower operational costs, access to cost-effective skilled workforce

Separate Legal Identity

Independent entity that can own property, enter contracts, and build local credibility

Business Diversification

Spread business risk and enhance global presence across new sectors

Property Ownership Rights

Can purchase or rent properties in India for business operations

Eligibility & Minimum Requirements

Shareholders

Minimum 2 shareholders - Can be individuals, foreign companies, or mix

Parent company must hold minimum 50% equity share capital

Directors

Minimum 2 directors - At least one must be resident in India

Can appoint through nominee directorship services if needed

Registered Office

Valid physical address in India with NOC from landlord if rented

Virtual office address services available

Capital Requirements

No minimum capital requirement to start the subsidiary

Capital investment must match incorporation documents

Digital Signatures

DSC for all directors - Required for online registration

Director Identification Number (DIN) mandatory

FDI Compliance

RBI approval required for countries sharing border with India

100% FDI allowed in most sectors automatically

Documents Required for Registration

Company-Related Documents
  • Memorandum of Association (MOA) & Articles of Association (AOA)
  • Registered Office Proof: Rental agreement or ownership documents + utility bills
  • No Objection Certificate (NOC) from property owner if rented
  • Parent Company Certificate of Incorporation (foreign entity)
  • Board Resolution approving Indian subsidiary formation
Director & Shareholder Documents
  • Digital Signature Certificate (DSC) for all directors
  • Identity Proof: PAN/Aadhaar (Indian) or Passport (foreign) with embassy verification
  • Address Proof: Voter ID, utility bills, or equivalent
  • Passport-size photographs of directors and shareholders
Important Notes:
  • Foreign documents must be notarized/apostilled as per Indian requirements
  • Declaration of consent required from all directors and shareholders
  • Capital structure details must be provided

Step-by-Step Registration Process

1
Obtain Digital Signatures (DSC)

Get DSC for all proposed directors for online document signing

2
Apply for Director Identification Number (DIN)

Submit DIN application through MCA portal for all directors

3
Name Approval (RUN Form)

Submit unique name application through MCA portal (₹1,000 fee)

4
Draft MOA & AOA

Prepare legal documents outlining company objectives and rules

5
File SPICe+ Form

Submit incorporation documents through MCA portal with AGILE-PRO for GST, EPFO, etc.

6
Receive Certificate of Incorporation

ROC issues COI upon approval (includes PAN & TAN automatically)

7
Open Bank Account

Open current account in company name with incorporation documents

8
Deposit Capital & File FC-GPR

Receive investment from parent company and file RBI form within 30 days

About AGILE-PRO Form

The AGILE-PRO form (Application for Goods and Services Identification Number, Employees State Insurance, Professional tax, Opening of bank account, and Shops & Establishment registration) is submitted with SPICe+ Part B to get multiple registrations simultaneously:

  • GST Registration
  • EPFO Registration
  • ESIC Registration
  • Professional Tax Registration
  • Bank Account Opening
  • Shops & Establishment Registration

Post-Incorporation Compliance Requirements

Within 30 Days
  • File Form FC-GPR with RBI for foreign investment
  • Appoint statutory auditor (Form ADT-1)
  • Hold first Board Meeting
  • Issue share certificates to shareholders
Within 180 Days
  • File Form INC-20A (Commencement of Business)
  • Deposit share capital into bank account
State-Specific Registrations
  • Shop & Establishment Act registration (within 30 days)
  • Professional Tax registration (if applicable)
Annual Compliances
  • Annual General Meeting (AGM)
  • File Annual Return (Form MGT-7)
  • File Financial Statements (Form AOC-4)
  • Income Tax Return filing
Ongoing Requirements
  • Maintain proper books of accounts
  • File 3 secretarial returns annually
  • Monthly/Quarterly GST returns if registered
  • Board meetings (minimum 2 per year)
Regulatory Authorities
  • Ministry of Corporate Affairs (MCA)
  • Reserve Bank of India (RBI)
  • Registrar of Companies (ROC)
  • Income Tax Department
  • GST Department

Fees & Cost Structure

Component Estimated Cost (INR) Notes
Government Fees
Name Reservation (RUN) ₹1,000 One-time fee
SPICe+ Filing ₹0–₹7,000+ Free up to ₹15L authorized capital
Stamp Duty ₹1,000–₹5,000+ Varies by state
Professional Fees
CA/CS Services ₹9,099–₹25,000+ Documentation and filing
Notarization/Apostille ₹5,000–₹15,000+ For foreign documents
Post-Incorporation
Form FC-GPR Filing ₹5,000–₹10,000 Professional assistance for RBI
Auditor Appointment ₹2,000–₹5,000 Form ADT-1 filing
First Year Compliance ₹15,000–₹30,000+ Annual returns, filings, meetings
Additional Registrations Included in AGILE-PRO
PAN & TAN Free Through SPICe+
ESIC/EPFO/PT Free Through AGILE-PRO
Important Notes:
  • Costs vary based on authorized capital, number of directors, and professional service provider
  • Annual compliance costs ongoing: ~₹15,000–₹30,000 per year
  • Tax audit fees extra if turnover exceeds ₹1 crore (₹10L for professionals)

Taxation for Indian Subsidiary Companies

Corporate Tax Rates:
Standard Corporate Tax

25.17% (including surcharge & cess)

Applicable to most domestic companies

Foreign Company Royalties

50% for technical services to government/Indian entities

40% for other income

Surcharge & Cess:
  • Surcharge: 2% for income ₹1-10 Crore, 5% above ₹10 Crore
  • Health & Education Cess: 4% on total tax + surcharge
Concessional Rates for Specific Sectors:
Oil Exploration

Special concessional rates

Air Transportation

Special concessional rates

Shipping Businesses

Special concessional rates

GST Requirements:
  • Mandatory registration if turnover exceeds ₹20L (₹10L for special states)
  • Monthly/quarterly GST return filings
  • Annual GST return required
Tax Treaties:

India has Double Taxation Avoidance Agreements (DTAAs) with many countries that may provide relief from dual taxation.

FDI Policy & Sectoral Regulations

Automatic Route (100% FDI)

Most sectors allow 100% Foreign Direct Investment through automatic route without government approval.

Government Approval Required

Sectors requiring prior government approval for FDI:

  • Private Security Agencies
  • Civil Aviation
  • Print Media & Broadcasting
  • Satellite Establishment & Operation
  • Mining Activities
  • Pharmaceuticals
  • Trading of Food Products
Special Requirements for Border Countries

Investments from countries sharing land border with India require prior government approval regardless of sector.

Business Structure Options:
Private Limited Company
  • Most preferred for foreign subsidiaries
  • No minimum capital requirement
  • Min 2 directors (1 Indian resident)
  • Min 2 shareholders
  • 100% FDI allowed in most sectors
Public Limited Company
  • Can raise funds from public
  • Min 3 directors
  • Min 7 shareholders
  • More regulatory requirements
Limited Liability Partnership (LLP)
  • More restrictive FDI rules
  • Suitable for joint ventures
  • Professional service firms
Branch/Liaison Office
  • Not a subsidiary
  • Limited activities allowed
  • For market research/liaison only

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Frequently Asked Questions (FAQs)

The registration process usually takes 12 to 15 business days, provided all required documents are submitted correctly and on time.

Step-by-step timeline:
  • Day 1-2: Apply for Digital Signature Certificate (DSC) for directors
  • Day 3-4: Apply for Director Identification Number (DIN)
  • Day 5-7: Name approval application with MCA
  • Day 8-10: Preparation and filing of incorporation documents
  • Day 11-13: MCA processing and verification
  • Day 14-15: Certificate of Incorporation issued

Note: Additional time may be required if there are objections or if documents need correction.

Yes, a foreign company can own 100% of an Indian subsidiary in most sectors under the Automatic Route. However, there are some important points:

Automatic Route (No approval needed):
  • Most sectors allow 100% FDI
  • Certain sectors like defense, telecom, insurance have limits
  • FDI reporting to RBI required within 30 days
  • Must comply with FEMA regulations

Government Approval Route (Approval needed):
  • Defense sector (beyond 74%)
  • Broadcasting (certain categories)
  • Multi-brand retail trading
  • Banking (private sector)

Prohibited Sectors: Lottery, gambling, chit funds, etc.

Yes, it is mandatory to have at least one director who is an Indian resident. According to the Companies Act, 2013:

Requirements for directors:
  • Minimum 1 resident director: Must have stayed in India for at least 182 days in previous calendar year
  • Minimum 2 directors: For private limited company (can be foreign or Indian)
  • Maximum 15 directors: Can be increased with special resolution
  • Foreign directors: Can be appointed but need DIN and DSC
  • No residential requirement: For foreign directors

Documents required for foreign directors:
  • Passport copy (notarized and apostilled)
  • Proof of address (notarized and apostilled)
  • Passport-size photograph
  • PAN card (if Indian resident director)

Key differences between subsidiary company and branch office:

1. Legal Status:
  • Subsidiary: Separate legal entity from parent company
  • Branch Office: Extension of foreign company, not separate entity

2. Liability:
  • Subsidiary: Limited liability for parent company
  • Branch Office: Unlimited liability for parent company

3. Activities Allowed:
  • Subsidiary: Can do any business allowed in India
  • Branch Office: Limited activities (representation, research, exports, etc.)

4. Registration:
  • Subsidiary: Registered as Indian company
  • Branch Office: Registered as foreign company's branch

5. Taxation:
  • Subsidiary: Taxed as Indian company
  • Branch Office: Higher tax rate (40% + surcharge)

Yes, the subsidiary company registration process can be done completely online through the Ministry of Corporate Affairs (MCA) portal.

Online Process Steps:
  • Step 1: Apply for Digital Signature Certificate (DSC) online
  • Step 2: Apply for Director Identification Number (DIN) online
  • Step 3: Company name approval through RUN form
  • Step 4: File SPICe+ form (INC-32) for incorporation
  • Step 5: Submit supporting documents digitally
  • Step 6: Pay registration fees online
  • Step 7: Receive Certificate of Incorporation by email
  • Step 8: Apply for PAN and TAN online

Documents that need physical attestation:
  • Foreign documents need notarization and apostille
  • Can be scanned and uploaded after attestation
  • No physical submission to MCA required

Penalties for non-compliance can be severe and include:

1. Annual Compliance Penalties:
  • Late filing of annual return (Form MGT-7): ₹100 per day, maximum ₹5 lakh
  • Late filing of financial statements (Form AOC-4): ₹100 per day, maximum ₹5 lakh
  • Late holding of AGM: ₹1 lakh fine on company, ₹50,000 on officers

2. Director-related Penalties:
  • Non-disclosure of directorship: ₹50,000 to ₹5 lakh penalty
  • Disqualification of directors: For continuous default
  • DIN deactivation: For non-compliance

3. Tax-related Penalties:
  • Late filing of GST returns: ₹100 per day (CGST + SGST)
  • Late filing of income tax returns: ₹5,000 to ₹10,000
  • Non-deduction of TDS: Equal to TDS amount + interest

4. Serious Consequences:
  • Strike off company name from ROC register
  • Director disqualification for 5 years
  • Bank account freezing by authorities
  • Legal prosecution for serious violations
  • Difficulty in raising funds or getting loans
Why Choose Compliance 360

Subsidiary Company Registration Service

  • Professional Legal Guidance

    Our experts guide you through Indian company laws and foreign investment norms to ensure smooth subsidiary registration.

  • End-to-End Online Process

    From document submission to approval, the entire registration process is handled digitally for speed and convenience.

  • Accurate Documentation Handling

    We prepare, review, and file all required documents carefully to avoid delays or rejection.

Subsidiary Company Registration
  • Transparent & Fair Pricing

    We follow a clear pricing structure with no hidden charges, so you always know the total cost in advance.

  • Complete Compliance Support

    Our team assists with ROC filings, regulatory requirements, and other compliances after registration.

  • Dedicated Client Assistance

    You get dedicated support and regular updates, ensuring clarity and peace of mind throughout the process.