Companies from other countries can create branches in India. The laws in India offer two options for these branches based on the foreign company’s capital. So, if a foreign company wants to start a business in India, they can either set up a wholly-owned subsidiary or a subsidiary company.
According to the Companies Act 2013, a subsidiary is defined as a company in which a foreign legal entity owns at least 50% of the total share capital. The definition also states that the foreign company has legal rights on the structure of the board of directors of the subsidiary. There must be at least one Indian resident director in company.
There are two main options when registering a company in India as a subsidiary. Investors may establish a wholly-owned subsidiary, which designates the fact that the parent company owns 100% of the subsidiary’s shares. This choice is only for businesses that permit full foreign investment, up to 100%. The other option refers to the subsidiary company, in which the parent company controls at least 50% of the subsidiary’s capital.
Copy of rent agreement/lease deed.
NOC from landlord
Copy of electricity / telephone/gas/mobile Bill (not older than two (2) Months) of proposed registered office address.
MOA, AOA & Certificate of Incorporation of foreign holding Company, attested by director of that company duly translated in English, if not in English language & Certified by Indian Consulate.
Certificate of Incorporation of the foreign holding company attested by director of that company duly translated in English, if not in English language & Certified by Indian Consulate.
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Company Law expert from My Efilings will file the application for availability of new name with the MCA after drafting of resolutions The approved name shall be available only for 20 days
DIN and DSC for the proposed Directors of the Company has to be obtained This takes around 5 to 8 days of time
Once DSC is made, we need to submit incorporation documents in specified forms with the ROC Processing time taken by ROC to approve the incorporation documents is around 7 to 9 days
Once documents are verified and approved you will receive the incorporation certificate
Foreign Direct Investment (FDI) up to 100% is now allowed in many industries. There are two routes to invest in India, Automatic Route and Government Route. Leaving few industries, Automatic Route is available for many industries. No prior approval is required from Reserve Bank of India (RBI) for Automatic Route. Only intimation within 30 days of investment is required.
Of course, the Indian Companies Act requires that there should be at least two shareholders and foreign companies hence must hold 99.99% of shares of an Indian subsidiary. Also, according to the Indian Companies Act, an individual is named and owns the minority balance holding.
An Apostille, a special certificate issued by the Secretary of State, validates the authenticity of documents for acceptance in countries part of the Hague Apostille Convention. Since 2005, India's membership has simplified document verification, allowing one Apostille to be recognized in all 104 member countries, reducing the need for separate attestations.
No, registering a new company is done entirely online. All the necessary documents are filed electronically, so you don't have to be physically present at any point. Instead, just send us scanned copies of all the needed documents and forms.
