Overview
An Indian Subsidiary Company is a business entity incorporated in India by a foreign company to carry out operations in the Indian market. With India emerging as one of the fastest growing economies and a preferred destination for foreign investment, setting up an Indian subsidiary allows foreign businesses to establish a long term presence and directly participate in commercial activities. A subsidiary company in India is governed by the Companies Act, 2013 and is treated as a domestic company for regulatory and taxation purposes.
A foreign company can set up an Indian subsidiary in the form of a Private Limited Company or a Public Limited Company. In most cases, a private limited company is preferred due to ease of management and lower compliance burden. A subsidiary can be wholly owned or partially owned by the foreign parent company, subject to Foreign Direct Investment policies. The company must have at least two shareholders and two directors, out of which one director must be a resident of India.
Indian subsidiary companies can engage in manufacturing, trading, consultancy, software development, research, marketing and various service activities, depending on sectoral regulations. They can enter into contracts, open bank accounts, hire employees and generate revenue in India. Compliance with FEMA, RBI regulations and sector specific approvals is mandatory where applicable.
BizGlobal Professional Services assists foreign companies in establishing their Indian subsidiary seamlessly. From advisory on FDI compliance and structuring to incorporation, regulatory approvals and post incorporation compliance, BizGlobal provides end to end support ensuring a smooth and compliant entry into the Indian market.
