Indian Subsidiary Registration with Tax Pal Solutions
Expanding your global presence in India is a smart move, and Tax Pal Solutions makes the process simple, compliant, and stress-free. We help foreign companies establish subsidiaries in India with complete legal support, documentation, and post-registration compliance.
Why Choose Tax Pal Solutions?
- End-to-End Registration Support – From business structure selection to incorporation.
- Expert Document Preparation – Drafting MoA, AoA, and filings with MCA.
- Compliance Management – Guidance on Indian corporate, tax, and labor laws.
- Tailored Solutions for Foreign Entities – Aligning with parent company goals.
- Dedicated Advisory Team – Legal and financial experts at your service.
What is an Indian Subsidiary Company?
An Indian Subsidiary is a company incorporated in India, where a foreign parent company owns more than 50% shares or controls its Board of Directors.
- Separate Legal Identity – Independent from the parent company.
- Limited Liability – Parent liability limited to its investment.
- Own Operations – Can own property, sign contracts, and operate independently.
- Governed by Indian Laws – Registered under the Companies Act, 2013.
Types of Subsidiaries in India
- Wholly-Owned Subsidiary – 100% ownership by the parent company.
- Partially-Owned Subsidiary – More than 50% but less than 100% ownership.
- Operational Subsidiary – Handles daily business operations.
- Strategic Subsidiary – Focused on new markets or business expansion.
- Joint Venture Subsidiary – Shared ownership between foreign and Indian entities.
Wholly-Owned vs. Shared Subsidiary
| Aspect |
Wholly-Owned Subsidiary |
Partially-Owned Subsidiary |
| Ownership |
100% by parent company |
51%–99% by parent company |
| Control |
Complete control |
Shared with minority shareholders |
| Decision-Making |
Parent has full authority |
Requires consultation with co-owners |
| Flexibility |
High |
Moderate |
| Risk Management |
All risks borne by parent |
Risks shared |
Business Structures for Subsidiaries
| Entity Type |
Description |
Best For |
| Private Limited Company |
Preferred for foreign subsidiaries; separate entity, limited liability. |
SMEs & growth-oriented companies. |
| Public Limited Company |
Can raise funds publicly but with stricter rules. |
Large-scale companies. |
| LLP |
Flexibility, limited liability, but restrictive FDI norms. |
Professional firms, joint ventures. |
| Branch Office |
Extension of parent, not a subsidiary. |
Representation purposes. |
| Liaison Office |
Only market research/communication. |
Testing Indian market. |
Benefits of Registering a Subsidiary in India
- Access to India’s Growing Market – Tap into 1.4+ billion consumers.
- Financial Advantages – Cost-effective operations and tax benefits.
- Limited Liability – Protects parent company assets.
- Global Diversification – Strengthens international presence.
- Local Partnerships – Build trust and collaborate with Indian firms.
- Operational Flexibility – Adapt quickly to Indian business needs.
Eligibility & Requirements
- Shareholders: Minimum 2 (foreign or Indian).
- Directors: At least 2, with one resident in India.
- Registered Office: Must have a physical address in India.
- Minimum Capital: No mandatory minimum capital required.
Documents Required
For the Company
- Memorandum of Association (MoA) & Articles of Association (AoA).
- Proof of Registered Office (lease/ownership documents + utility bills).
- NOC from property owner (if rented).
- Certificate of Incorporation of parent company.
- Board Resolution approving subsidiary registration.
For Directors & Shareholders
- Digital Signature Certificate (DSC) & Director Identification Number (DIN).
- Identity & Address Proof (PAN, Aadhaar, Passport, Voter ID).
- Passport-size photographs.
- Declarations of consent and eligibility.
Step-by-Step Process of Registration
- Decide on company type (usually Private Limited).
- Obtain DSC for directors.
- Apply for DIN.
- Reserve company name through MCA.
- Draft and file MoA & AoA.
- Submit incorporation forms (SPICe+).
- Pay registration fees.
- Receive Certificate of Incorporation.
- Apply for PAN & TAN.
- Open a bank account.
- Register for GST, ESIC, EPFO (via AGILE PRO).
- Begin operations.
AGILE PRO Form Coverage
| Component |
Purpose |
| GSTIN |
For tax compliance if goods/services are sold. |
| ESIC |
Employee medical benefits registration. |
| EPFO |
Provident fund compliance. |
| Professional Tax |
State-level professional tax (if applicable). |
| Bank Account |
Open current account with listed banks. |
| Shops & Establishments |
Labor law compliance in states. |
Registration Fees (Estimated)
| Category |
Cost (INR) |
Notes |
| Name Reservation |
₹1,000 |
RUN form filing. |
| SPICe+ Filing |
₹0 – ₹7,000+ |
Based on share capital. |
| Stamp Duty |
₹1,000 – ₹5,000+ |
Varies by state. |
| Professional Fees |
₹10,000 – ₹25,000+ |
CA/CS/legal support. |
| Notarization & Apostille |
₹5,000 – ₹15,000+ |
For foreign parent docs. |
| Annual Compliance |
₹15,000 – ₹30,000+ |
Filings & governance costs. |
Post-Incorporation Compliance
- Open subsidiary bank account.
- Deposit share capital from parent company.
- Issue share certificates within 60 days.
- File Form FC-GPR with RBI for foreign investment.
- Register for GST & Professional Tax (if applicable).
- Maintain accounts & appoint an auditor (Form ADT-1).
- Hold first board meeting within 30 days.
- File annual returns & financials (MGT-7, AOC-4).
