FincomIndia

Subsidiary of Foreign Company

A partially or wholly owned company that is part of a larger corporation with headquarters in another country. Foreign subsidiary companies are incorporated under the law's of the country it is located.
From Rs 49,999/- Inc. of all taxes

For a foreign Investor in India it is very important to choose a right kind of business or corporate entity which best suits its purposes and takes care of liability issues and tax planning issues. Foreign Companies planning to do business in India should pay special attention to Entry Strategies in India for Foreign Investors and corporate structuring to save taxes to the best extent allowed by laws and international tax treaties.

It is also mandatory for foreign investors or foreign shareholders, both individuals and corporate shareholders, to seek Government Approvals for Investing in India In some special cases Foreign Investment Promotion Board, FIPB Approval for Foreign Investment in India is required. In other cases Reserve Bank of India, RBI Approvals for Foreign Investment in India is required. The sectors where RBI Approval for foreign investors is available under automatic route can be found at FDI in India Sector wise Guide.

There are various steps required to establish a business in India, before and after incorporation, as mentioned hereinafter. See also the Procedure for Formation of Company in India. See also USA Company forming a subsidiary in India.

Private Limited Company is the most popular form of business entity among foreign investors, including USA investors, to form a subsidiary, a joint venture or 100% owned company in India. There is less risk of losing intellectual property to the competition because the parent can implement common data access and security protocols. Cost synergies are possible because a parent and its subsidiaries could use common financial systems, share administrative services and develop joint marketing programs.

Salient Features of Subsidiary of Foreign Company

Safeguarding Trade Secrets

Setting up a WOS or a Subsidiary offers security and good protection for the proprietary information, company’s trade secrets, expertise and technical knowledge, apart from offering a high degree of control over the operations.

Operation and Strategic Control

The most important advantage of setting up a Wholly Owned Subsidiary is the operational and strategic control that a parent company can exercise over its subsidiary.

Limited Liability

If a subsidiary company suffers any liability, then the liabilities and credit claims won’t be passed on to the parent company, ensuring that the assets of the parent company suffer no harm in case the subsidiary is in losses.

Retaining Brand Name

The overall advantage for both parties however, in forming a wholly owned subsidiary; are that the subsidiary can retain its name brand while the parent company is afforded the opportunity to branch out into new markets.

Transparent And Competitive Pricing

BASIC STANDARD PREMIUM
PAN
DSC
DIN
TAN
Share Certificates
RBI Compliances
GST Registration
Trademark
Rs. 55,000
Rs. 49,999
Inc. all taxes
Rs. 60,000
Rs. 54,999
Inc. all taxes
Rs. 72,500
Rs. 64,999
Inc. all taxes
Delivery Process

1. Order Confirmation

Once you confirm the order online one of our executives will get in touch with you to explain all the requirements.

2. Digital Signature Certificate (DSC)

All Propose directors/promoters of the company should have a digital signature and digital signature will use to file the Incorporation, ROC compliance forms, and Tax returns. There is no need of a physical signature to register a company.

3. Director Identification Number (DIN)

As soon as Digital signature is approved, We will attest DIN form in the capacity of Chartered Accountants, and you will get an approval email from the Registrar of companies that you are now eligible to be a director of a company. It takes one working day to approve DIN.

4. Hurray......It's Done

After obtaining DSC and DIN, we will proceed to file a Name Approval form to ROC on your behalf. It takes 2 to 3 working days to get approval from the Registrar of Companies.

Frequently Asked Questions
The Ministry of Corporate Affairs vide Circular No. 21/2014 dated June 18, 2014 has clarified that expenditure incurred by Foreign Holding Company for CSR activities in India will qualify as CSR spend of the Indian Subsidiary if, the CSR expenditures are routed through Indian Subsidiaries and if the Indian subsidiary is required to do so a per section 135 of the Act.
Business ‘Form’ purely depends on the business need. Such need could be to execute one time project in India, promote the product, understand the market, appoint a distributor, just have a place of business or hire an employee in India etc
Till the time investment decisions are not firm, business in India can be done by appointing an agent, distributor in India or directly providing services from abroad. Such arrangements are subject to applicable tax withholding rules in India. The payment from India is governed by rules of Foreign Exchange Management Act (FEMA) and controlled by Reserve bank of India (RBI)
BO can be opened with a prior approval from RBI and it’s regarded as Foreign Company in India. As it’s not a separate entity from its parent company, all business risk and liabilities are directly assumed by the Parent company. It can conduct full fledged business activities in India, except Manufacturing. It can however subtract such activities to Indian vendors. BO, being a foreign company taxed at a higher rate (presently 40%)
In terms of MCA General Circular no. 23/2014 dated 25th June 2014, an existing company, being a subsidiary of a company incorporated outside India, registered under the Companies Act, 1956, either as private company or a public company by virtue of section 4(7) of that Act, will continue as a private company or public company as the case may be, without any change in the incorporation status of such company.
Most of the business sectors don't require a prior approval and 100% FDI is permissible. In all such cases, only reporting is required to RBI, within 30 days of receipt of equity/allotment of shares. Where ever automatic route is not available i.e. sectors which has a cap on FDI, prior approval from Foreign Investment Promotion Board (FIPB) is required e.g Whole Sale Trading.
There is no restriction of any foreign citizen for becoming a Director in Indian PLC. The person is not necessarily be a Shareholder as well. He/She should however require obtaining a Directors Identification Number (DIN) in India. In case, the Director from US also requires signing on behalf Board of Indian PLC, He/She also needs to get a Digital Signature (DSC).
There are no tax benefits now days to WOS from any country. In case the WOS is 100% exporting its services, it may prefer in establishing in a Special Economic Zone (SEZ), to avail benefit of tax exemption (Service tax, VAT etc) on input services.
Foreign investment in any form is prohibited in businesses engaged or proposes to engage in the following business: i) Business of chit fund; or, ii) Nidhi Company; or, iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to agro & allied sector and tea plantations); or, iv) Real Estate business, or construction of farm houses (Does not include development of townships, construction of residential / commercial premises, roads or bridges); or, Trading in Transferable Development Rights (TDRs).
The following documents are needed to incorporate a subsidiary in India. (1)Office address Address proof (electricity bill or rent agreement and latest electricity bill in case of rented accommodation) (2) Indian National PAN Card (mandatory), Address Proof (Electricity Bill, Telephone Bill, Bank statement or passbook or rent agreement and latest electricity bill in case of rented accommodation), Photo ID Proof (Passport, Driving License, Voter ID or Aadhar Card)
The entire assignment will be completed in around 10-15 working days subject to the timely availability of the documents & information from the client’s end.

Our Presence

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FinComIndia has capability to serve at your door step at more than 6000 Pin Codes across. You have the opportunity to avail our world class services sitting at your home or office itself. This service is free of cost for all the customers. We practically cover the whole of India. Kindly check in the box above for availability of door step services in your city.

Reasons to choose FinComIndia?

PROFESSIONAL EXPERTISE

FinComIndia has a team consisting of more than 75 experts of varied domains which enables us to deliver high quality of services. All our staff is well trained and regularly updated with all relevant statutory changes.

DOOR STEP SERVICES

We pick up all the required documents right from your door step at your preferred time and date and also deliver back the original documents / certificates to your address.

NATION WIDE REACH

We have capability of providing our services across more than 6000 Pin Codes in India. This makes us the front runner in Nation wide reach.

BEST PRICE

We are upfront with our pricing with no hidden fees, Also lowest pricing through automation and technology.

Money Back Guarantee

If you are not satisfied with our work, we will refund the money after deducting the statutory fees paid and other administrative charges.

100% Customer Satisfaction

With our quality of services and professional expertise, we guarantee 100% customer satisfaction.

Giving Back to the Society

In our endeavour to give back to the society, we donate 1% of our profits to various charitable and environmental causes.