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Looking to establish your business presence in India? Setting up an Indian / Foreign Subsidiary Company is the most secure and scalable route for foreign companies — whether you're entering a new market, setting up an R&D unit, or tapping into India’s large talent pool and customer base.
At Founder’s Buddy, we offer complete assistance to incorporate your wholly owned subsidiary or joint venture in India, ensuring 100% compliance with the Companies Act, FEMA, and RBI regulations.
What’s included in Your Indian/Foreign Subsidiary Company Registration Package:
An Indian / Foreign Subsidiary Company is a private limited company registered in India where a foreign company or individual holds a majority or 100% of shares.
An Indian / Foreign Subsidiary Company is a Company incorporated in India in which a foreign company holds a majority stake or 100% of the share capital, thereby exercising control over its management and operations.
It is treated as a domestic company under Indian tax laws, and enjoys the same legal benefits and obligations as any Indian company.
This structure is ideal for:
You focus on growing your business — we’ll handle the legal compliances and regulatory complexities
| Feature / Model | Indian/ Foreign Subsidiary | Branch Office | Liaison Office | Joint Venture (JV) |
|---|---|---|---|---|
| Legal Status | Private Limited Company (separate legal entity) | Extension of foreign company | Extension of foreign company | Private/Public Company with Indian partner |
| Ownership | Up to 100% foreign-owned | 100% foreign-owned | 100% foreign-owned | Shared with Indian partner |
| FDI Route | Automatic in most sectors | RBI Approval Required | RBI Approval Required | Automatic/Government route depending on sector |
| Can Earn Revenue |  Yes | Yes (limited to parent business scope) |  No | Yes |
| Can Invoice Customers in India | Yes | Yes | No | Yes |
| Permitted Activities | Full business ops, hiring, contracts | Export/import, consulting, services | Marketing, research, liaison | Full business ops with shared control |
| Separate Tax Entity? | Yes | No (taxed as foreign co.) | No | Yes |
| Corporate Tax Rate | 25% (Domestic Co. Rate) | 40% (Foreign Co. Rate) | N/A | 25% |
| Repatriation of Profits | Allowed post-tax | Allowed | No profits generated | Allowed (subject to agreement) |
| Setup Time | 10–15 Days | 25–40 Days (RBI approval) | 25–40 Days (RBI approval) | 15–20 Days |
| Compliance Load | Medium to High | High | Medium | Medium to High |
| Control | Full control by parent | Full control by parent | Full control by parent | Shared control |
In India, subsidiaries can be broadly classified based on ownership and control:
This is where 100% of the shareholding is held by a single foreign company or its nominees. It offers maximum control and is ideal for MNCs or foreign startups looking for full autonomy in Indian operations.
In this model, the foreign company partners with an Indian entity, and both hold shares in the subsidiary. Joint ventures are beneficial when local market expertise, distribution networks, or regulatory approvals are required.
A company in India that is owned by another Indian subsidiary of the foreign parent. This is often used for large group structures, especially when expanding into multiple verticals or geographic regions within India.
Each type of subsidiary enjoys separate legal entity status and is governed by Indian corporate laws, but the choice depends on your control preference, investment strategy, and regulatory framework applicable to your sector.
The process of registering a subsidiary company in India is governed by several key regulatory authorities that ensure compliance with local laws and business regulations. The primary authority is the Ministry of Corporate Affairs (MCA), which oversees company incorporation and mandates compliance under the Companies Act, 2013. Additionally, the Registrar of Companies (RoC) plays a vital role in processing incorporation documents and maintaining company records. If the parent company is a foreign entity, approval from the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA) is essential for capital investment and repatriation of funds. In certain sectors, companies may also need sector-specific approvals from regulatory bodies such as the Department for Promotion of Industry and Internal Trade (DPIIT) and other industry regulators. Ensuring compliance with these authorities is crucial for the smooth and lawful operation of an Indian subsidiary.
Before registering an Indian / Foreign Subsidiary, it's crucial to ensure the following preliminary conditions and documentation are in place:
You focus on growing your business — we’ll handle the legal compliances and regulatory complexities
Get Digital Signature Certificate (DSC)
Get Digital Signatures to e-sign incorporation documents.
Apply for Director Identification Number (DIN) Via SPICe+ Part B form.
Reserve Company Name (SPICe+ Part A)
Name must align with Indian naming norms and include “Private Limited”
Draft Charter Documents (MoA/AoA)
Includes foreign shareholding and scope of business
File SPICe+ Form for Incorporation
Includes PAN, TAN, DIN.
Get PAN & TAN - Auto-issued after incorporation.
RBI Compliance (FDI Reporting)
File FC-GPR form post capital infusion
Bank Account, GST, and Business Setup
We assist in opening Indian bank account and getting local registrations
Starting at
Rs.19,999/-+ GST and Govt. Fees
Call us on +91 9167123781 / 82
Starting at
Rs.49,999/- + GST and Govt. Fees
Call us on +91 9167123781 / 82
You focus on growing your business — we’ll handle the legal compliances and regulatory complexities
Every company in India must appoint a statutory auditor within 30 days of incorporation. The auditor is responsible for verifying financial statements and ensuring regulatory compliance.
A current account in the company’s name is required to deposit share capital, receive foreign remittances, and conduct day-to-day business transactions.
The parent company or foreign shareholders must remit the capital contribution to the Indian Subsidiary’s bank account. This is a prerequisite for filing the Commencement of Business form.
Share certificates must be issued to all shareholders within 60 days of incorporation, as mandated by the Companies Act.
This form must be filed within 180 days of incorporation, confirming that the company has received its share capital and is ready to begin operations.
Once the foreign investment is received, the company must file Form FC-GPR with the RBI within 30 days from the date of allotment through the FIRMS portal. This filing is crucial to report the foreign shareholding structure and ensure FEMA compliance.
Companies with foreign investment in India are required to comply with annual and ongoing FEMA regulations as prescribed by the Reserve Bank of India (RBI). These compliances ensure lawful foreign shareholding, smooth cross-border transactions, and uninterrupted business operations.
staying in India for 182+ days during the financial year
✅ Yes, in most sectors under the automatic route. However, some sectors like defense, telecom, or insurance have caps or government approval requirements.
🚫 No. It is treated as a domestic company for tax purposes, even if 100% owned by a foreign entity.
✅ No, the entire process can be completed remotely with notarized and apostilled documents.
💵 Profits can be repatriated as dividends or royalties, subject to applicable tax and RBI guidelines.
📋 Subsidiary must comply with ROC filings, board meetings, accounting, and RBI FDI reporting (within 30 days of capital infusion).
✅ Yes. It functions like any Indian company and can hire staff, sign contracts, and own property.
📌 A subsidiary offers more flexibility, limited liability, and tax benefits compared to branch or liaison offices.
✅ Yes. After incorporation, it can open branch offices in any city by updating the ROC and GST records, as required.
📝 FC-GPR (Foreign Currency-Gross Provisional Return) must be filed with the RBI within 30 days of issuing shares to a foreign shareholder. We handle this as part of post-incorporation RBI compliance.
💱 Yes. Investments can be remitted via SWIFT/foreign wire transfer under automatic FDI route into the company’s bank account, subject to RBI reporting.
📄 Yes, if you’re using a rented/leased property as the registered office, an NOC along with the utility bill is mandatory.
🌍 Yes, the Indian entity can sponsor employment visas and appoint foreign nationals as employees or directors.
✅ Yes. The foreign parent can license intellectual property (IP) to the Indian subsidiary via a royalty or technical services agreement, subject to FEMA guidelines and transfer pricing rules.
🔤 It can, subject to availability and approval by MCA. Common practice includes adding "India", "Technologies", or other suffixes to distinguish the name while maintaining brand identity.
✅ Yes. Statutory audit is mandatory for all companies, regardless of turnover. You'll also need to appoint a Chartered Accountant (CA) as your auditor.
💰 Yes. Being an Indian-registered company, it can raise funds through equity, debt, or convertible instruments, subject to regulatory compliance.
📌 A Liaison Office can only act as a representative office (no revenue activities), while a Subsidiary can carry out full business operations, hire employees, and earn income.
🧾 GST is mandatory only if the business exceeds the threshold turnover (₹20L/₹40L) or engages in inter-state trade, imports, or exports. Voluntary registration is also allowed.
💸 It depends on business activity, but typical annual compliance includes ROC filings, tax returns, audits, GST filings, RBI FDI compliance, etc. We offer cost-effective packages.
Still have questions about Indian / Foreign Subsidiary registration in India? Contact our experts for a free consultation.
