Foreign Subsidiary Company Registration

Foreign Subsidiary Company Registration with Tax Pal Solutions

Expanding your business into India can unlock immense opportunities. At Tax Pal Solutions, we specialize in Foreign Subsidiary Company Registration and ensure complete compliance with Indian corporate, tax, and foreign investment regulations. From RBI reporting to company incorporation, we make the process seamless and reliable.

What is a Foreign Subsidiary in India?

• A foreign subsidiary is an Indian company where a foreign parent holds more than 50% shares.
• It enjoys the same legal rights as an Indian company but must follow Indian laws like the Companies Act 2013, FEMA, and Income Tax Act.
• You can set up either a Wholly-Owned Subsidiary (100% foreign-owned) or a Joint Venture (with an Indian partner) depending on your sector.

Wholly-Owned Subsidiary (WOS) vs. Joint Venture (JV)

Why Register a Subsidiary in India?

• Access to India’s Growing Market – 1.4B+ population & a booming middle class.
• Credibility & Trust – Local incorporation builds confidence among customers and partners.
• Limited Liability – Parent assets are protected; liability limited to investment.
• Skilled Workforce – Large pool of English-speaking professionals at competitive costs.
• Tax Advantages – DTAA treaties prevent double taxation on profits.
• Government Support – Schemes like Make in India and Digital India promote foreign investment.

Key Requirements for Registration

• Directors – Minimum 2, with at least 1 Indian resident.
• Shareholders – Minimum 2 (parent company + nominee).
• Capital – No minimum capital required.
• Registered Office – Must have a valid address in India.

Documents Required

From Parent Company

• Certificate of Incorporation (apostilled)
• Charter Documents (MoA/AoA)
• Board Resolution approving Indian subsidiary

From Foreign Directors

• Passport (apostilled)
• Address proof (utility bill/bank statement)
• Passport-size photograph

From Indian Resident Director

• PAN & Aadhaar card
• Address proof

For Registered Office

• Rent agreement/ownership proof
• Utility bill (latest)
• NOC from property owner

Process of Subsidiary Registration

Step 1 – Digital Signature & DIN

Get DSC & DIN for directors.

Step 2 – Reserve Company Name

Apply through MCA’s RUN service.

Step 3 – Draft MoA & AoA

Define objectives & internal rules of the company.

Step 4 – File SPICe+ Form

One integrated form for incorporation, PAN, TAN, GSTIN, EPFO & ESIC.

Step 5 – Certificate of Incorporation

Issued by MCA, confirming your subsidiary’s legal existence.

Step 6 – Post-Incorporation Compliance

Open bank account, file INC-20A, report investment to RBI.

Cost of Subsidiary Registration

With Tax Pal Solutions, you only pay for professional guidance. No hidden charges.

Compliance Checklist After Registration

• First Board Meeting within 30 days
• Appointment of statutory auditor (Form ADT-1)
• File INC-20A within 180 days (capital declaration)
• RBI Reporting – Form FC-GPR & FLA return
• Annual ROC filings (AOC-4, MGT-7)
• Income tax filings & tax audit (if applicable)

Foreign Subsidiary vs. Other Structures