Overview
An Indian Subsidiary is a Private Limited Company incorporated in India wherein a majority (usually 99.99%) of the shares are held by a Foreign Parent Company. This is the most structured, legally secure, and popular route for foreign businesses looking to enter the Indian market. The subsidiary operates as a separate legal entity from its parent, thereby limiting the parent company's liability. Setting up an Indian Subsidiary involves complying with the Ministry of Corporate Affairs (MCA) as well as the Foreign Direct Investment (FDI) guidelines of the Reserve Bank of India (RBI).
What is Included in Our Subsidiary Package
Detailed compliance and filing scope managed by JRC corporate experts.
Documents Required to Start
Upload digital files during onboarding. No physical submissions needed.
From the Foreign Parent Company
- Certificate of Incorporation of the Parent Company
- Board Resolution authorizing the investment and nominating a representative
- Articles/Memorandum of the Parent Company
- Address proof of the Parent Company
From the Directors (Foreign & Indian)
- Passport copy of the Foreign Directors (Apostilled/Notarized)
- Address proof (Driver’s License/Bank Statement) of Foreign Directors (Apostilled/Notarized)
- PAN Card and Aadhaar Card for the resident Indian Director
- Passport-sized photographs
Step-by-Step Registration Timeline
Our step-by-step advisory workflow.
Step 1: Document Legalization
We guide your legal team in the home country on properly notarizing and apostilling the required foreign documents.
Step 2: DSC & Name Approval
We procure Digital Signatures for all directors and secure a company name (can include the parent company’s brand name).
Step 3: MCA Incorporation
We file the SPICe+ forms with the ROC to formally incorporate the subsidiary and obtain the PAN and TAN.
Step 4: Bank Account & FDI Reporting
Once incorporated, we assist in opening an AD Bank Account. Upon receiving the share capital remittance, we file the mandatory FC-GPR form with the RBI.
Key Advantages of an Indian Subsidiary
A subsidiary structure provides operational autonomy combined with strong parent control.
Limited Liability for Parent Entity
The foreign parent company is protected. Its liability is strictly limited to the share capital invested in the Indian subsidiary.
100% Foreign Direct Investment (FDI)
In most sectors (like IT, manufacturing, trading), India allows 100% FDI under the automatic route without prior government approval.
Full Repatriation of Profits
Profits, dividends, and capital can be easily repatriated back to the parent company's home country, subject to standard tax laws.
National Treatment
An Indian Subsidiary is treated identically to a domestic Indian company regarding local taxation, hiring, and buying property.
Frequently Asked Questions
Helpful answers to common regulatory inquiries.
Do we need an Indian citizen as a director?▼
Yes. Indian company law mandates that at least one director on the board must be a Resident in India (a person who has stayed in India for at least 182 days in the previous financial year).
Can the subsidiary use the same name as the foreign parent company?▼
Yes, the Indian subsidiary can use the exact brand name of the parent company by submitting a formal NOC or board resolution from the parent entity.
What is the minimum capital required to set up a subsidiary?▼
There is no statutory minimum capital requirement for incorporation. However, the authorized capital should be sufficient to cover initial operational expenses.
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