
Forming Foreign Company Subsidiary in India
With Make In India popularity, Lots of Foreign Companies showing their interest in opening Subsidiary Company in India. Reason behind is India is Fastest Growing Market and it has one of the Best Human Resources. A Foreign National other than Pakistan and Bangladesh can invest in India, by acquiring shared of Company. However same need to follow FDI Policy Procedure and Conditions.
The minimum requirements for incorporating a company in India are
- It should have a minimum of 2 Directors and 2 Shareholders. One of Directors should be an Indian Resident. Finding an Indian Resident Director becomes a challenge for many Foreign companies. Generally, the companies appoint the Senior Employee or the Country Manager as its Director.
- The Incorporation Documents including the Address Proof, Identity Proof, etc of the Foreign Shareholders and Directors to be Notarized and Apostilled / Endorsed at the Indian Consulate in the country where the registered office of the entity is situated.
What is Wholly Owned Subsidiary Company in India by Foreign Company
Where a foreign company makes hundred percent (100 %) (takes all shares) FDI in India through automatic route, the Indian company become the wholly owned subsidiary company in India. For Example – XYZ Inc. of America owns 100 per cent shares in Shree Pvt. Ltd. Then Shree Pvt. Ltd. becomes the Subsidiary Company.
Types of Business Entities in India
- Private Limited Company
- Public Limited Company
- Unlimited Company
- Limited Liability Partnership (LLP)
- Partnership
- Sole Proprietorship
As a Investor (Foreign) who is making investment in India, it is very important to make a right kind of suitable business which full fill its purpose and take care of liabilities and tax planning. Companies who Planning do enter in India market need to pay a special attention to what entry strategy to be taken. We help foreign invertor to take prepare right entry level strategy for minimizing taxes and further compliances and registration of Foreign Company Subsidiary In India.
Documents required for Wholly Owned Indian Subsidiary
- 2 Passport Size photographs
- Any two Address Proofs (Aadhar Card / Driving License / Voter ID / Passport)
- PAN CARD (Not mandatory in case of Foreign Director)
- Passport (Mandatory for Foreign Director, Must be in English Language and Duly Apostle)
- Other Documents such as Credit Card Statement, Bank Passbook, Telephone Bill & Electricity Bill
* Note: If the Proposed Director is in Foreign country, then all the documents must be Duly Apostle.
Frequently Asked Questions
What are the requirements to be a Director?
The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Private Limited Company.
Is an office required for starting a Private Limited Company?
An address in India where the registered office of the Company will be situated is required. The premises can be Commercial / Industrial / Residential where communication from the MCA will be received.
How long will it take to Incorporate a Company?
Tax Assist can incorporate a Private Limited Company in 7-15 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.
Can NRIs / Foreigners hold shares of a Private Limited Company?
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.