Legal Requirements for Foreign Companies to Register a Subsidiary in India.

India has become a hot place for foreign investments, which helps in attracting business around the globe. For any foreign company looking to establish a foothold in Indian Market, setting up a subsidiary is the best choice to make. In this article you will be learning about all the documents and legal requirements which are needed to register a subsidiary in India.

1.       Understanding the Subsidiary Structure: A subsidiary in India is a company which is incorporated under the Indian Companies Act, 2013. It is different from its parent company and it must comply with the Indian Laws, that means it should follow proper taxations and corporate governance. A foreign company can hold up to 100% equity in its Indian subsidiary.

2.       Name Approval: The first step to Online Subsidiary Company Registration is to get a unique name and to get its approval. It is important for the name to be unique and the trademark should not be similar to the existing ones. To complete this process, you can apply to Registrar of Companies (ROC) along with a few proposed names.

3.       Documentation: To establish an Indian Subsidiary Company, foreign companies have to prepare and submit various documents including:

·         Certificate of Incorporation of the parent company.

·         MOA tailored to Indian laws.

·         Board Resolution which approves the establishment of the subsidiary.

·         Details of Directors and all the identification proofs.

If these documents are drafted in foreign language, then it is necessary to translate them into English.

1.       Registered Office: Getting an Indian Subsidiary requires a registered office in India and it is applicable for all the companies. This office must be in designated jurisdiction where the company is registered. Proof of the office will be required, such as rental agreement or ownership deed.

2.       Compliance with the Foreign Exchange Management Act (FEMA): If a foreign company has to get its subsidiary in India, it is necessary for them to comply with FEMA regulations regarding foreign investments. It involves filing forms such as Form FC-GPR, which is a necessary document and it must be submitted to RBI after receiving the investment.

3.       Obtain DIN (Director Identification Number) and DIC (Digital Signature Certificate): All of the directors of the subsidiary must obtain a DIN from the Ministry of Corporate Affairs (MCA). A DSC is also necessary for the electronic filing process of documents with the ROC.

4.       Filing with the Registrar of Companies: Once all the documents are gathered by the company, the application for registration must be submitted to the ROC along with the required fees. Once it is approved, the ROC will issue a Certificate of Incorporation, officially establishing the subsidiary.