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Setting up Subsidiary Company in India

Foreign Direct Investment has played a crucial role in introducing the latest and updated technology to the target country. For developing country it is not only mean of upraising revenue but also bring the economic to the phase of development. In India, there are many subsidiary segments running under the different foreign companies. India being as one of the emerging segments of commerce and trade; welcome companies from all across the world. In last decade; several types of foreign companies have entered into India while opening their subsidiaries in India.

What is Subsidiary Company

Subsidiary company is that corporate segment which is controlled, managed and administered by its parent country which is located in different country than of subsidiary country. Any of the foreign company can open its subsidiary in India with 100 % share holding. But there are certain types of companies that are not allowed to carry their subsidiaries in India as per the slab mentioned by Reserve Bank of India. With getting the permission by RBI one can file an application for setting up subsidiary company in India. If the subsidiary company is not from the negative sector then it can easily apply for registration of wholly owned subsidiary company in India and if the same subsidiary is from any negative sector as per slab then it need to take approval from Foreign Investment Promotion Board.

Before setting up of subsidiary company in India there are certain points that need to plan in advance that can ask during the time of registration of the same as mentioned below:

How to set up a subsidiary company

After getting the certificate of company formation there are many steps need to adhere like:

For optimal business structure is appropriate to establish a subsidiary or branch in the country. Foundation is usually performed after receiving all the founding documents of a foreign company, which is a Certificate of Incorporation bearing clause and extract translation into India. Certificate of incorporation of a foreign company is negotiating to authorities in the India only valid for certain numbers of months. Subsidiary in India is based either as a new legal entity or transferred all of the shares and the implementation of changes in the ready-made companies, which have sufficient available. Establishing a branch is legally easier, mainly because of non-payment of capital, but branch has limited legal personality. For a subsidiary or branch it will necessary to adhere with each and every section of company act 1956 and other legal rules prescribed under the RBI of India.

Thus, if you are looking to launch your subsidiary in India, or need registration of the subsidiary in India or need to open branch, project or liaison office in India then just call to us where the team of certified attorneys and corporate solicitors will serve you with best services in setting up subsidiary company in India.

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