Registration Process Of Indian Subsidiary | Ebizfiling

 

 Introduction 

 

Planning to start a new business in India? Registering a business in India is a rapid and online process of company registration in India. India is a land of infinite opportunities and a skilled workforce as one would agree. Starting a business in India and investing was never so easy, cheap, and quick. One can start a wholly-owned Indian subsidiary anywhere in India. There are no state-specific laws to register your business in India. There is only one central law that governs the Indian Subsidiary set up across India. All you need is a resident Indian director (not necessarily a shareholder but can be an employee) and a rented or owned place of office to get going.

 

At Ebizfiling, we have a separate wing of experts handling matters for Indian Subsidiaries, providing you with expert help at every stage of the process including with the filing forms with RBI.

   

 Which company can be known as an Indian Subsidiary? 

 

A company that is owned wholly or partly by another company is referred to as a subsidiary company. A parent company is also known as a holding company that owns the subsidiary. When a company takes over the control of the Board of Directors of a subsidiary company and owns more than 50% of the total share capital. It is defined under section 2(87)of the Companies Act, 2013.

 

Procedure for registering Indian Subsidiary by foreign nationals by Ebizfiling

 

Let us discuss some easy steps followed by our experts to register a company in India by foreign nationals, which are as follows:

Step 1- Our experts connect with the person or proposed company who wishes to establish a subsidiary company in India.

Step 2- Then we ask for a few details from the person or proposed company like the number of director/ shareholders, nationality and residence, where the proposed company or person want to establish the subsidiary company, business activity, etc. along with the documents required for company registration in India to verify. Our team of experts will verify the documents provided by the proposed company and take the procedure further.

Step 3- After we get all the necessary details of the proposed company. We shall proceed with the application for a Digital Signature Certificate. A Digital Signature Certificate (DSC) is the equivalent of a physical signature in an electronic format, as it establishes the identity of the sender of an electronic document on the Internet.

Step 4- Subsequently we file the name application form. The proposed company can suggest up to two names of their choice. Names should be unique and suggestive of the company’s business. Our experts will file the name application in the Part A of the form of SPICe+ with MCA. It can be used for taking the name approval of the proposed Company and also for filing company registration in one go.

Step 5- Once the name is approved form the MCA. Post name approval of the company, draft documents like MOA, AOA of the Indian subsidiary company along with the ID and address proof of the foreign director/parent company needs to be either notarized/apostilled/consularised from the concerned authority of the particular country.

Step 6- After the legal certification of documents and DSC. We filed an application form for Indian subsidiary registration in India in the prescribed form, i.e., SPICe+ Form:

 

• Part B: In Part B of the Form Spice+, apply for the following services:

1. Incorporation

2. DIN allotment

3. PAN is required to be issued.

4. Mandatory TAN issuance

5. Mandatory issue of EPFO registration

6. Mandatory issue of ESIC registration

7. Mandatory issue of Profession Tax registration

8. Mandatory Opening of a Bank Account for the Company and

9. Allotment of GSTIN (if so applied for).

Step 7- The final step would be to open a bank account in India under the name of the new company.

 Post incorporation compliance  

 

• After the proposed company receives the incorporation certificate, file INC 20A Form within 180 days. Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be reviewed by a chartered accountant (CA) or company secretary (CS) or a cost accountant in practice.

 

• When the subsidiary company receives the foreign investment and allots shares to the investor in return for the investment, the company is required to inform the RBI about the allocation of shares within 30 days. For this, the company should submit the FC-GPR (Foreign Collaboration- General Permission Route) form. It is a form issued by the Reserve Bank of India under the Foreign Exchange Management Act,1999.

 

 Documents required by Foreign Nationals while registering a company in India 

 

• Passport photocopy (Notarized or Apostille).

• Address proof such as a driver's license, residence card, bank statement, or other government-issued identification document with proof of address.

• Residential identification documents, such as bank statements, utility bills, and phone bills.

• Proof of a registered office.

• Proof of any utility service, such as telephone, gas, or electricity, for office buildings.

• Proof of stockholders' names and addresses.

• Articles of Association and Memorandum of Association.

 

 Final thoughts 

 

The compliance manager assigned to the proposed company will keep you updated on the progress of online company registration in India throughout the process. A parent company that wants to develop across geographies and industries will have to create subsidiaries. An Indian subsidiary company is legally considered to be an Indian company and is responsible for following all regulations that are relevant to Indian companies. Get in touch with our company Ebizfiling. It is an eminent business platform and a progressive concept. It helps with end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. The process of Indian Subsidiary incorporation & registration is easy, cheap, and quick at EbizFiling.com.