Foreign Subsidiary

The Foreign Subsidiary is a registered company under Act, 2008.

Foreign Subsidiary

The Foreign Subsidiary is a registered company under Act, 2008.

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OVERVIEW

India has a booming economy, and it is a great destination for NRIs and venture capitalists to invest their money. There are many modes through which aaa foreign investor can invest in India. One of the most successful and sought after ways is Incorporation of Foreign Subsidiary in India in the form a private limited company.

foreign subsidiary

DOCUMENTS REQUIRED FOR FOREIGN SUBSIDIARY COMPANY

Pan Card

Self-attested copy of PAN (mandatory)

Voter Id

Self-attested copy of Voter ID/Driving License/Passport (any one)

Address Proof

Copy of address proof, i.e. bank statement with transaction/ mobile bill/ electricity bill/ telephone bill (not older than two months)

Passport Size Photo

Two Copy of Passport Size

 

In the case, the applicant is a foreign national (Self-attested)

  1. Residential proof (Apostille and Notarized).
  2. Passport (Apostille and Notarized).
  3. Notarized identity proof of the director(s).
  4. If the applicant is out of the native country, then attested copy of VISA is required.
  5. In the case, the foreign national is residing in India, then attested copy resident permit certificate is required.

 

For the proposed registered address (Residential /commercial)

  1. NOC from the owner if applicable.
  2. Copy of electricity bill/Telephone Bill.

MINIMUM REQUIREMENTS

01.

Capital

There is no minimum capital required to form a Private Limited Company in India.
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02.

Directors

Minimum two directors are required to incorporate a Private Company in India. Both should be individuals and at least one of whom should be a resident of India. (A resident of India is a person who has stayed in India for at least 182 days in the previous year).
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03.

Shareholders

Companies Act, 2013 requires that a Private Limited Company have a minimum of two shareholders. There is no condition for the residential status of shareholders. Shareholders can be either individuals or entities or a combination of both.
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ADVANTAGES OF FOREIGN SUBSIDIARY COMPANY

Limited Liability: The liability of Directors and members of the private limited company is limited to their shares. This means the company suffers from any loss and faces financial distress because of primary business activity, the personal assets of shareholders/Members/Directors will not be at risk of being seized by banks, creditors, and government.
Continuity of Existence: Mostly, the life of the business doesn’t affect by the status of shareholders, and even after the death of the shareholder, the private limited company continues to exist.
Brand Value: The brand value of a company will get increased because employees feel secure in joining the private limited company, vendor fee secure in offering credit, the investor feels secure in investing, the customer feels trust and confidence in a brand in buying company product or servicesbecause of the sound corporate structure. Many startup companies start with zero revenue and rapidly reaches to a multibillion-dollar company in just few years just because of the high brand value of the company.
Scope of expansion: The scope of expansion is higher because it is easy to raise capital from a venture capitalist, financial institutions, angel investor and the advantages of limited liability, the Private limited offer more transparency in the company.
Foreign Direct Investment in India Foreign Direct Investment (FDI) is 100% allowed in several business activities/industries without any prior approval. But FDI is not allowed in Proprietorship or Partnership; LLP requires prior Government approval.

 

FREQUENTLY ASKED QUESTIONS

Foreign Subsidiary Company Registration is a 100% online process. No need to be present physically at our office or ministry of corporate affairs. We will send our person to your home or office for document signature.
Yes a foreign national can become a director in a foreign subsidiary.
Private limited is the best suitable and flexible form of entity for a foreign subsidiary company.
Normally a foreign subsidiary can be registered in India within 15 working days from the date of submission of documents.
AOA refers to articles of association which defines the internal constitution of the company, and MOA defines the mission, vision, and business object of the company in the long run business.
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