Foreign Investments today hit Indian markets as India became a favorite investment ground. Any foreign company investing in India should register in India as a subsidiary company. This article explains the process of registration.
Incorporation of a Subsidiary Company in India of a Foreign Entity
First Let us understand what a foreign subsidiary company Is: A subsidiary company is a company whose 50% voting stocks or equity shares are held by another company, referred to as the parent company, or the holding company. If the parent company is incorporated in a foreign country, it is said to be a foreign subsidiary company. Any subsidiary company incorporated in any country has to register in India.
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Procedure to Register a Foreign Subsidiary Company in India
With the influx of digitisation, the process of registering a company in India has become online. Now you can get your company registered in India from the comfort of your home with the following steps:
Step 1: Log in to the MCA portal
- The MCA has introduced the SPICe+ form to simplify the incorporation process. Click on MCA services and then select “SPICe+”
- The form has two parts Part-A (Name approval process) and Part-B (application to incorporate a company in India)
Step 2: Fill in the details in part-A to reserve your company name.
- Firstly, the user will have to do a comprehensive name search. Vakilsearch’s company name search service can do it for you.
- The user has to fill in details like the subsidiary company’s class, type, sub-category, etc.,
- A foreign entity can register in India with its parent company’s name with the addition of the word “India” to it.
- The name chosen should not be identical to an existing one, and must not be undesirable by the Indian law.
- If the parent company has a registered trademark, it can use such a trademark for the foreign approval name approval in India.
Step 3: On successful name approval, the user has to fill in the details required for Part-B
- Before filling up the form you will have to keep the following handy:
- All details of each director, along with soft copies of passport size photos, and contact details. Notarised or apostilled copy of passport and residential proof translated in English.
- Digital Signature Certificate of a resident director
- Permanent Account Number (PAN) and Tax Account Number (TAN) of the directors
- Director Identification Number (DIN) of each director.
- Apostilled/ Notarised copy of the Board resolution authorising the registration of such foreign entity in India.
- Proof of registered offices in India like utility bills, or NOC from the landowner
- Notarised/apostilled physical copy of Memorandum of Association (MoA) and Articles of Association (AOA)
- A resident director is someone who has resided in India for 182 days in the previous year. Any foreign subsidiary company in India has to authorise a resident director as a signatory whose specimen signature would be required for company incorporation.
Step-4: After filling up the SPICe+ form, the AGILE form appears
- The AGILE form or INC-35 covers three key registrations for business in India
- GST registration (GSTIN)
- Employees’ State Insurance Corporation registration (ESIC), and
- Employees Provident Fund Organisation registration (EPFO)
- It is mandatory to fill out the AGILE form and submit it along with the SPICe+ form during the incorporation of a company.
- However, the abovementioned registrations are optional during the incorporation.
- On successful verification of the details and the documents submitted, the department will issue the Certificate of Incorporation along with the PAN and TAN details.
Why Should You Hire Vakilsearch?
Incorrect details provided or an incomplete application may hamper or delay your registration process. This is where Vakilsearch’s experts can help you. The services at Vakilsearch do not demand your physical presence at any point in the registration process. You just have to send us the documents and the details, and the professionals at Vakilsearch will work out the entire incorporation process for you.
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