Indian Subsidiary Company Registration

Establishing a subsidiary company in India can be a strategic decision for businesses aiming to expand their operations and tap into the immense potential of the Indian market. However, the process of setting up a subsidiary can seem daunting, given the legal and regulatory complexities involved. In this comprehensive guide, we will walk you through the essential steps and requirements for Indian subsidiary company registration, shedding light on the key aspects you need to consider.

• Understanding the Concept of a Subsidiary Company: A subsidiary company is a distinct legal entity that is wholly or partially owned and controlled by another company, referred to as the parent company or holding company. In India, subsidiary companies are subject to the provisions of the Companies Act, 2013, which governs their incorporation, management, and operation.
• Types of Subsidiary Companies in India: Under Indian law, there are two types of subsidiary companies: private limited companies and public limited companies. Private limited companies are the most common form, offering limited liability and minimum share capital requirements. Public limited companies, on the other hand, require a higher minimum share capital and have more stringent compliance obligations.
• Key Requirements for Subsidiary Company Registration: To register a subsidiary company in India, several key requirements must be fulfilled:

A.Minimum Capital: Private limited companies must have a minimum authorized and paid-up capital of INR 1 lakh and INR 5 lakhs, respectively. Public limited companies have higher capital requirements.

B. Directors: A minimum of two directors is mandatory for private limited companies, and three directors for public limited companies. At least one director must be an Indian resident.

C. Shareholders: Private limited companies require a minimum of two shareholders, while public limited companies need a minimum of seven shareholders. Shareholders can be individuals or corporate entities.

D. Registered Office: A registered office address in India is necessary for communication and official purposes.

E. Name Reservation: Before registering a subsidiary company, the proposed name must be approved by the Registrar of Companies (RoC).

4. Step-by-Step Registration Process: The registration process for an Indian subsidiary company typically involves the following steps:

A. Obtain Director Identification Number (DIN): Directors must obtain a DIN by submitting the requisite application and supporting documents to the Ministry of Corporate Affairs (MCA).

B. Digital Signature Certificate (DSC): Directors must obtain a DSC, which serves as an electronic signature for online filing of documents.

C. Name Reservation: Apply for name reservation with the RoC through the MCA’s online portal. The proposed names must adhere to naming guidelines and should not conflict with existing names.

D. Preparation of Documents: Prepare the necessary documents, including Memorandum of Association (MoA), Articles of Association (AoA), and other statutory declarations and forms.

E. Submission and Payment: Submit the incorporation documents along with the required fees to the RoC.

F. Certificate of Incorporation: Once the RoC verifies and approves the documents, they issue a Certificate of Incorporation, indicating the formation of the subsidiary company.

5. Post-incorporation compliance involves adhering to regulatory obligations such as maintaining accounts, filing financial statements, conducting meetings, and following corporate laws.

Conclusion:

Registering a subsidiary company in India is a transformative step for business expansion. By understanding requirements, consulting experts, and following the registration process diligently, you can establish a strong presence and capitalize on India’s market potential.