Subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company-
Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed. A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company. The subsidiary can be a company, corporation, or limited liability company. In some cases, it is a government or state-owned enterprise.
Advantages of Indian Subsidiary
1. Application of DSC and DIN
All the prospective directors have to apply for Digital signature and DIN. Digital signature is an online signature used for filing and DIN refer to Directors Identification number issued by MCA. If the directors already have DSC and DIN, then this step can be skipped.
2. Application for Name approval
Up to 4 name options can be given in 1 RUN (Reserve Unique Name) name approval request. Provide maximum 4 names in order of priority for your company name for approval of MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business.
3. Company Registration Form & MOA & AOA Submission
Once name is approved, one need to get the Memorandum & Articles of Association approved. Both MOA and AOA are filed with the MCA with the subscription statement.
4. Get incorporation certificate
Once MOA and AOA are approved, company incorporation certificate is issued by MCA on submission of all the relevant documents to the ROC. On arrival of the company incorporation certificate, your company is registered. Incorporation certification is a proof that company has been created. It also includes your CIN number.
5. Apply for PAN, TAN and Bank account
The moment company is incorporated, application for PAN & TAN needs to be made with NSDL. Then you need to apply for PAN and TAN. Post this, for opening of bank account submit the Incorporation certificate, MOA, AOA and PAN along with resolution with a bank to open your bank account.
INDIAN SUBSIDIARY REGISTRATION package includes:
Minimum Capital of Rs. 1lac
DIN for all Directors
A parent company shall have 50% of total equity capital.
Indian Companies Act requires that there should be at least two shareholders and foreign companies can hold 99.99% of shares of an Indian subsidiary and the balance holding may be nominated and held under the Indian Companies Act in the name of an individual.
Yes, under FIPB route no approval is required.
No. A foreign national cannot purchase any immovable property in India. However, he/she can acquire or transfer immovable property in India, on lease, not exceeding five years.
Foreign Direct Investment (FDI) in Real Estate, Foreign investors, other than NRIs, were allowed to invest only in development of integrated townships and settlements, either through a wholly owned subsidiary or through a joint venture company in India, along with a local partner.
There are two routes by which India gets FDI. Automatic route: By thisroute FDI is allowed without prior approval by Government or Reserve Bank of India. Government route: Prior approval by government is needed via this route.
