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Register your Indian Subsidiary Company seamlessly with FOXTAX.
- Key Features of an Indian Subsidiary Company
- Benefits of Registering an Indian Subsidiary in India
- Eligibility Criteria for Indian Subsidiary Registration
- Documents Required for Indian Subsidiary Company Registration
- Step-by-Step Registration Process
- Cost and Timeline for Indian Subsidiary Registration
- Tax Benefits and Compliance Requirements
- Indian Subsidiary Registration for Foreign Companies
- Why Choose FOXTAX for Indian Subsidiary Registration?
- Frequently Asked Questions About Indian Subsidiary Registration
- Documents Required for Indian Subsidiary Company Registration
- Step-by-Step Registration Process
- Why Choose FOXTAX for Indian Subsidiary Registration?
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What is an Indian Subsidiary Company?
An Indian Subsidiary Company is essentially a foreign company setting up a permanent base in India through incorporation. Being part of the Companies Act 2013, this kind of company will be the local “hand” of the parent overseas.
In cases where the overseas parent controls more than half of a subsidiary’s votes, that company is deemed a subsidiary, while in cases where there’s complete ownership, the daughter company is called a Wholly-Owned Subsidiary (WOS).
It should be made abundantly clear that as a distinct legal personality, the subsidiary can take its own decisions apart from its parent. It is able to sign Indian contracts, purchase land, employ staff, all under its own name. Moreover, the subsidiary company establishes a “corporate veil”, a safeguard protecting the parent company, thereby reducing the parent company’s financial liability to the amount of investment made in the Indian subsidiary only.
So, the home office is not liable for whatever liabilities might be the result of the subsidiary’s activities. In that manner, subsidiaries registered in India are a favored way of doing company registration in India through which global players can easily set up their operations on the ground with full local legal recognition.
Why foreign companies choose registration of a subsidiary company in India
Among various ways to set up operations internationally, this is “the perfect” setup since it gives the right mix of a local presence and international control. Getting a registration of an Indian subsidiary company is not so much of a formality but a key strategy for a company to grow its business over the world over time.
- Operational Control: Foreign parent company has complete control over board of directors and the decision making.
- Tax efficiency: Since the subsidiary is recognized as an Indian domestic company, it can often get taxed at lower rates. In particular, it can do timely GST Registration. Also, profit sent back to foreign parent will be eligible for benefits from DTAA (Double Taxation Avoidance Agreement). This will also align with Start-up India tax incentives if the entity is qualified for such incentives through DPIIT recognition.
- Market Trust: Private Limited Company is the most preferred format of a subsidiary registration to create credibility with Indian banks, vendors, and customers who like to deal with a locally incorporated business.
- Incentive access: Being a locally registered company entity can explore MSME subsidies and/or state subsidies (startup) which is usually not available to foreign branch offices.
Indian Subsidiary vs Branch Office vs Liaison Office
Consider knowing which business mode works best when you start your company.
The below illustration offers fast-track differences among the top three ways a foreign business can operate in India:
Feature | Subsidiary | Branch Office | Liaison Office |
Legal Entity | Separate entity | Extension of parent | Non-profit entity |
Registration | Required with ROC | Registration required | Simple registration |
Liability | Limited | Unlimited | No commercial activity |
Capital | Required | Optional | Not required |
Tax Status | Separate taxation | Pass-through | Exempt |
Operations | Full business scope | Full business scope | Info |
Compliance | Stringent | Moderate | Minimal |
Cost of Indian Subsidiary Company Registration in India
- Registration Fees: ₹500-2,000
- Legal & Compliance: ₹30,000-75,000
- Bank Account Setup: ₹2,000-5,000
- Other Approvals: ₹10,000-20,000
- Total Estimated Cost: ₹50,000-1,00,000+
Timeline for Indian Subsidiary Incorporation
Time Line Breakdown:- DIN/DSC Acquisition: 3-5 days
- Company Registration: 7-10 days
- PAN/TAN: 3-5 days
- Bank Account: 7-10 days
- Tax Compliance: 5-7 days
- Total Duration: 4-6 weeks
Country-Wise Guide for Foreign Company Registration in India
Indian Subsidiary Registration by Country
FOXTAX assists foreign companies from across the globe to register their Indian Subsidiary. Here’s what you need to know based on your home country:
Document Apostille Requirements by Country
United States Companies
The USA is a member of the Hague Convention. All parent company documents must be properly authenticated:
- Certificate of Incorporation
- Board Resolution
- Memorandum & Articles of Association (MoA/AoA)
Process: Apostille by the relevant US State authority before submission to MCA India.
United Kingdom Companies
Post-Brexit, UK document requirements remain consistent.
Required Action: Companies House certificates must be apostilled by the UK Foreign, Commonwealth & Development Office (FCDO).
Singapore Companies
Singapore is a Hague Convention member with streamlined processes.
Required Action: ACRA-issued documents must be apostilled by the Singapore Academy of Law.
UAE Companies
The UAE joined the Hague Convention in 2021.
Required Action:
- Attest documents by the UAE Ministry of Foreign Affairs
- Obtain apostille following attestation
German Companies
Germany is a Hague Convention member with regional authorities.
Required Action: Documents must be apostilled by the relevant German regional authority (Landgericht or Oberlandesgericht).
Other Countries
For any country not listed above, contact FOXTAX. Our team will guide you on the specific apostille and notarization requirements for your jurisdiction.
Indian Resident Director Requirement
Mandatory: At least one director of the Indian Subsidiary must be an Indian Resident.
FOXTAX Solution: We can assist in appointing a qualified Resident Director as part of our comprehensive registration service.
Indian Subsidiary Company Registration Packages
Choose a plan that best fits your business needs. All packages include expert support and a seamless online registration process. Our packages are designed to cover everything from the basic company registration India requirements to comprehensive compliance for Startup India scheme subsidy eligibility.
Starter
Packages starting from
₹ 19,999 +Govt. Fee
(All Inclusive)
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Stamp duty on INR 1 Lakh Authorized Capital
- Company Incorporation using SPICe+
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account opening (feature) through SPICe Plus
Advanced
Packages starting from
₹ 44,999 +Govt. Fee
(All Inclusive)
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Stamp duty on INR 1 Lakh Authorized Capital
- Company Incorporation using SPICe+
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account opening (feature) through SPICe Plus
- MSME Registration
- GST Registration
- INC 20A
- Filing of Foreign Currency – Gross Provisional Return
- Legal Entity Identifier Code (Excluding Government Fees)
Premium
Packages starting from
₹ 69,999 +Govt. Fee
(All Inclusive)
- 2 Digital Signature Certificates
- 2 Director Identification Numbers
- Name Approval
- Stamp duty on INR 1 Lakh Authorized Capital
- Company Incorporation using SPICe+
- Drafting Of Memorandum
- Drafting Of Bye-Laws
- Copy of e-MOA & e-AOA
- e-PAN
- e-TAN
- ESIC Registration through SPICe Plus
- PF Registration through SPICe Plus
- Bank Account opening (feature) through SPICe Plus
- 1st Income Tax filing upto turnover of Rs. 20 Lakhs
- 1 Year TDS Filing upto 50 entries
- 1st Annual Filing upto turnover of Rs. 20 Lakhs
- MSME Registration
- GST Registration
- INC 20A
- Form ADT 1 (Auditor Appointment in AGM)
- Form AOC -4 (Form for filing financial statement and other documents with the Registrar)
- Form MGT -7 (Form for filing annual return by a company)
- 2 DIR 3 e-KYC of 2 Directors
- Filing of Foreign Currency – Gross Provisional Return
- Legal Entity Identifier Code (Excluding Government Fees)
- Start Up Recognition Certificate
Documents Required for Indian Subsidiary Company Registration
For a seamless Indian subsidiary company registration, ensure you have the following documents ready.
For Directors & Shareholders
- Passport (mandatory for foreign nationals / NRIs, if applicable)
- Latest address proof (bank statement or utility bill)
- Passport-size photograph
- Notarized & Apostilled all documents
For Registered Office
- Utility bill (not older than 2 months)
- Rent agreement or ownership proof
- No Objection Certificate (NOC) from owner
Eligibility & Basic Requirements
- Minimum 2 Directors
- Minimum 2 Shareholders
- Minimum paid-up share capital as prescribed by law
- Registered office address in India
Advantages of a Registration of an Indian Subsidiary Company
Separate Legal Entity
With a subsidiary, the parent company remains the sole owner whose assets cannot be challenged in legal proceedings against the subsidiary.
Comprehensive Business Operations
Contrary to a liaison office that is mainly a representation center, a subsidiary company is a full-fledged Indian company that can carry out all types of business activities including manufacturing, selling, and provision of services and has a property ownership capability.
100% Foreign Direct Investment (FDI):
The foreign company gets a green-light to operate in most sectors at 100% foreign ownership without seeking pre-approval of the government. In practice, the subsidiary can be considered a local company with full operational control, decision making, and ownership.
Raise Money from Local Resources:
Once an Indian company is incorporated, the company can raise funds from Indian banks, VCs & angel investors. In comparison, foreign branch offices are quite restricted in their ability to secure loans.
Cheaper Taxation option:
A residential company has to pay a much lower tax rate (about 22-25%) compared to an office (40%), and it can take advantage of India's double taxation treaties.
Building global trust:
If a company is present locally in India, customers, vendors, and workforce, etc. are more likely to trust the company.
Step-by-Step Process to Register an Indian Subsidiary in India
At FOXTAX we have a process-oriented, compliant and efficient way of registering, which also covers other regulatory problems like the Startup India registration process:
Business Discussion & Strategic Planning:
Based on your business plan, company structure, and compliance issues.
Documents Gathering & Authentication:
Director, shareholder, and office documents have to be collected and scrutinized.
Name Approval
Name to be submitted for approval.
DSC & DIN Registration
Digital Signature Certificate (DSC) and Director Identification Number (DIN) are generated.
MOA, AOA, and Incorporation Forms Filing:
All documents and incorporation forms are uploaded and submitted via MCA system to get a Company Incorporated.
Incorporation Certificate & PAN, TAN:
Once a company is incorporated, the Ministry of Companies Affairs brings the Certificate of Incorporation, PAN, and TAN plus other company details.
Frequently Asked Questions About Indian Subsidiary Registration
are treated similarly to foreign nationals for this purpose. They must provide a copy
of their passport, overseas address proof, and PAN card (if available). Documents
signed outside India must be notarized and apostilled.
Reserve Bank of India (RBI) through the FIRMS portal within 30 days of allotting shares
to the foreign parent company. Failure to file on time may result in penalties under FEMA.
and foreign nationals. An Indian Subsidiary is specifically a Private Limited Company
where a foreign parent entity holds more than 50% (or 100% for WOS) of the shareholding.
All Indian Subsidiaries are Private Limited Companies, but not all Private Limited
Companies are subsidiaries.
and its foreign parent company (e.g., for services, goods, IP licensing). The Income Tax
Act requires these transactions to be at "arm's length" prices — i.e., the same price
that would be charged to an unrelated party. Indian subsidiaries with international
transactions must file Form 3CEB and comply with transfer pricing regulations.
It can be a rented office, co-working space, or residential address (with NOC from
the owner). You must provide a utility bill (not older than 2 months) and a rent
agreement or NOC as proof of registered office.
180 days of incorporation. Without this filing, the company cannot legally commence
business operations or borrow money. It confirms that the paid-up share capital
has been deposited in the company's bank account.
Planning to register a Indian Subsidiary Company?
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