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Ideal for Large Businesses Starting at Rs. 25000 (All-Inclusive)
Foreign legal entities may set up subsidiaries in India and the legislation in this country provides for two types of subsidiaries, depending on the capital owned by the foreign company. Thus, when starting a company in India which is represented by a foreign legal entity, the investors may choose to incorporate 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 option is available only for the business sectors which allow 100% foreign direct investments. The other option refers to the subsidiary company, in which the parent company controls at least 50% of the subsidiary’s capital.
Reasons to Establish a Foreign Subsidiary:
You can choose any of our packages based on your requirements.
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.
No at the time of Company Registration there is no requirement of Obtaining RBI approval Expect in some cases.