Indian Subsidiary

An Indian Subsidiary compliance allows foreign businesses to operate in India with full legal rights. It offers 100% ownership in most sectors under the automatic route. This strategic move ensures local market access, brand presence, and credibility, while complying with Indian laws and tax regulations. So if you are planning to set up an Indian subsidiary then get in touch with the best Indian Subsidiary consultants in India.
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Service Overview

Setting up an Indian subsidiary company is a smart step for foreign companies looking to expand into one of the world’s fastest-growing economies. It ensures seamless integration into the Indian business landscape while allowing operational control, tax advantages, and full ownership in non-restricted sectors. Our compliance experts ensure compliance with RBI, MCA, and FEMA guidelines.

Challenges of Filing for a Private Limited Company

Complex Procedures
The formation of the private limited company is quite complex as it requires many legal formalities.
Time-Consuming
Sometimes, its exhausting to gather all the necessary papers and fill out all necessary documents.
Share Limit
In a Private Limited Company there is a limit of 200 shareholders, with a restricted limit on share transfers.
Business Commencement
Within 180 days of registering a Private Limited Company, the certificate of commencement of business must be obtained.

‍Challenges of Filing For Indian Subsidiary

Understanding Indian Regulatory Framework
Foreign entities often struggle to understand overlapping compliance requirements and frequent changes, leading to delays or penalties.
Sectoral Caps and Restrictions Apply
While FDI is allowed in most sectors under the automatic route, some sectors still fall under the approval route or have investment limits. Not being aware of these specifics can result in rejected applications or delayed incorporation.
Documentation and Legal Formalities
Missing or incorrect paperwork, especially from foreign jurisdictions, may result in delays or non-approval of incorporation requests.
Bank Account and Tax Setup Delays
Opening a bank account in the company’s name, applying for PAN, and registering under tax laws like GST can be time-consuming.

Advantages of Indian Subsidiary

Full Foreign Ownership Permitted
Foreign companies can hold shares in Indian subsidiaries under automatic routes in most sectors, making control and operations easier.
Access to Indian Market
A local presence builds trust, brand visibility, and access to one of the largest consumer markets globally, giving companies a strategic business edge.
Separate Legal Identity Ensured
An Indian subsidiary is treated as a separate legal entity, which limits the liability of foreign promoters and ensures independent financial accountability.
Tax and Regulatory Advantages
Indian subsidiaries may enjoy benefits under various tax treaties and startup schemes. It also simplifies foreign exchange compliance via RBI frameworks.

Service Process

01
Name Reservation
We help reserve your subsidiary’s name with the Ministry of Corporate Affairs (MCA) through the Reserve Unique Name (RUN) form based on name availability and naming guidelines.
02
Document Collection
Foreign parent company and directors must submit notarized documents, ID proofs, and apostilled forms. We guide you through document legalization steps.
03
DIN and DSC Registration
We apply for Director Identification Numbers (DIN) and Digital Signatures (DSC) for proposed directors to legally represent the Indian subsidiary.
04
Incorporation Filing
Our team files SPICe+ and other required forms with MCA, including MOA, AOA, and declaration forms, ensuring complete legal compliance.
05
PAN, TAN, GST Application
After incorporation, we assist in obtaining the company’s PAN, TAN, and GST registration to make your Indian operations tax-compliant.
06
Bank Account Opening
We coordinate with authorized Indian banks to help open a current account in the name of the subsidiary for operational transactions.
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Service Process

Consultation
We will have a consultation regarding your business vision and requirements to decide on whether the private limited company fits you well.
Documentation
We will help you to do the paperwork involving preparation of the Memorandum of Association and Articles of Association.
Registration
We will then forward all the necessary documents to the Registrar of Companies as required for registration.
Support
We will always be here with you to offer assistance and advice so that you can efficiently run your private limited company.
Compliance:
We will assist you in maintaining a continuing compliance with all legal and regulatory standards.

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We provide tailored solutions suited to your business operations.

Our experts ensure hassle-free audit clearance and approval.

End-to-end support, from documentation to implementation.

Trusted by 1000+ businesses across India.

Why Choose JR Compliance?

Service Breakdown

Eligibility

Eligibility

Foreign Corporate Entity: A legally incorporated foreign company is required to act as the parent entity for subsidiary incorporation.
Minimum Two Directors Required: At least two directors are required, with one being a resident Indian as per Companies Act guidelines.
Minimum Share Capital Clause: No minimum capital requirement officially exists, but adequate capital is advised based on operational needs.
Permissible Sector Classification: Subsidiary must operate in a sector where 100% FDI is permitted under the automatic route.

Documents

Documents

Parent Company Documents: Apostilled Certificate of Incorporation, Board Resolution, and Business License are essential.
Director Identification Proofs: Passport, address proof, and photographs of directors duly notarized and apostilled.
Indian Office Address Proof: A lease agreement or utility bill for a registered office in India is required.
MOA & AOA Draft: Memorandum and Articles of Association customized as per business goals and Indian law.

Who Needs

Who Needs

Foreign Companies Expanding Globally: Any overseas firm aiming to establish a formal business presence in India for trading or manufacturing.
Entrepreneurs with Global Vision: Startups or investors planning cross-border expansion to tap into India’s dynamic startup ecosystem.
Tech and Service-Based Businesses: IT, software, fintech, and consulting firms looking to hire locally or serve Indian customers.
Brands Seeking Indian Market Reach: International consumer goods, fashion, or wellness brands planning to sell directly in India.

Creating

Trust-Driven Relationships

JR Compliance is one of the known name for BIS certification, they are well versed with processes and guide client properly.
Kartik Shah
Published on 4 March 2024
We have outsourced the entire BIS certification responsibility of our panels to JR compliance since 2017 and their service so far has been exemplary.
P N Dhawanjewar
Published on 4 March 2024
We have been using JR Compliance services since last 3 years on various BIS related registration & testing of our various IT & electronic products. We really appreciate your full-fledged & excellent support in all respect in this matter.
K Narayanan
Published on 4 March 2024
Need more assistance, we are here to help you

FAQ

Can a foreigner own 100% of an Indian subsidiary?
Yes, foreign individuals or companies can own 100% of an Indian subsidiary in most sectors under the automatic FDI route, without requiring government approval, subject to compliance with FEMA and RBI regulations.
How long does it take to register an Indian subsidiary?
Typically, the process takes 15–20 working days, depending on document readiness, regulatory clearance, and approvals from MCA and RBI. Our expert guidance ensures timely execution without errors or delays.
Is it mandatory to have an Indian director?
Yes, it is mandatory to appoint at least one resident Indian director as per Section 149 of the Companies Act, 2013. This ensures legal accountability and local representation.
Can the subsidiary open a bank account before registration?
No, bank accounts can only be opened after successful company registration. Once incorporated, we help open an operational current account with your preferred Indian bank.
Are there any tax benefits for Indian subsidiaries?
Indian subsidiaries may benefit from Double Taxation Avoidance Agreements (DTAAs), lower withholding taxes, and startup exemptions depending on business structure and turnover limits.

Insightful Perspectives, Unveiled

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