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Incorporation of Indian Subsidiary

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Introduction of Set-up of Indian Subsidiary

Embarking on the journey of establishing a subsidiary in India requires a thorough understanding of the legal landscape, regulatory framework, and taxation system. At “Tax and Services,” we offer you a strategic and personalized approach to navigate these complexities, ensuring a successful and hassle-free incorporation process.

Key Highlights of Our Services:

  1. Comprehensive Legal Expertise: Our team comprises seasoned legal experts well-versed in Indian corporate law. We provide in-depth insights into the legal requirements for setting up a subsidiary, helping you make informed decisions at every step.

  2. Regulatory Compliance: Navigating the regulatory environment is crucial for a smooth incorporation process. We guide you through the maze of approvals, registrations, and compliance checks, ensuring that your subsidiary adheres to all statutory requirements.

  3. Tax Planning and Optimization: India’s taxation system can be intricate, but our experts specialize in developing tax-efficient strategies for your subsidiary. We help you understand and optimize your tax liabilities, ensuring compliance with local tax laws while maximizing your financial efficiency.

  4. Customized Solutions: Recognizing that each business is unique, we tailor our services to suit your specific needs. Whether you’re a multinational corporation or a start-up, we provide personalized solutions that align with your business goals.

  5. Efficient Project Management: Timely execution is critical in business, and we understand the importance of expediting the set-up process. Our efficient project management ensures that your Indian subsidiary is operational within the stipulated time frame.

  6. Ongoing Support: Beyond the initial set-up, “Tax and Services” remains your committed partner, offering ongoing support and advisory services. We keep you updated on regulatory changes, assist with compliance matters, and provide strategic guidance for your continued success in the Indian market.

Advantages of Set-up of Indian Subsidiary

Market Access and Growth Opportunities:

Tap into one of the fastest-growing economies globally and gain access to a vast consumer base. Establishing an Indian subsidiary allows you to position your business strategically in a dynamic market, fostering long-term growth.

Limited Liability and Risk Mitigation:

A subsidiary operates as a separate legal entity, providing limited liability for the parent company. This structure shields the parent company from the financial risks associated with the subsidiary, safeguarding its assets.

Tax Benefits and Incentives:

India offers a range of tax incentives to encourage foreign investment and business expansion. Enjoy favorable tax rates and exemptions, contributing to increased profitability for your Indian subsidiary.

Local Presence and Customer Trust:

Having a local subsidiary establishes a physical presence, instilling trust among Indian customers and partners. Enhanced customer trust often leads to stronger business relationships and increased market share.

Access to Skilled Workforce:

India boasts a large pool of skilled and cost-effective talent across various industries. Setting up a subsidiary allows you to tap into this diverse talent pool, fostering innovation and efficiency.

Simplified Regulatory Compliance:

Our expert team at Tax and Services ensures that your subsidiary complies with all local regulations. Navigate the regulatory landscape seamlessly, saving time and resources while avoiding legal complications.

Minimum Requirements

Documents Required for Filing FCGPR

PAN Card of the persons to be appointed as Authorized person on behalf of the entity

Board Resolution by the entity to authorize any person

Foreign Inward Remittance Certificate (FIRC)

KYC of the person resident outside India

Copy of FIPB approval (if so required)

Copy of Board Resolution for issue of securities

Process of Incorporation of Indian Subsidiary

Complete the Application Form

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Step 01

Document Processing

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Step 02

Application for DSC

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Step 03

Name Availability

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Step 04

E-filing for incorporation of a Company

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Step 05

Get Certificate of Incorporation

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Step 06

Filing of FCGPR

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Step 07

More Insight on Indian Subsidiary Registration for Foreigners

Key Considerations for Foreigners

1. Eligibility Criteria

Foreign entities seeking to register a subsidiary in India must fulfill certain eligibility criteria, including compliance with the Foreign Direct Investment (FDI) guidelines. It’s crucial to understand the sector-specific regulations and permissible investment limits.

2. Legal Structure

Choosing the right legal structure for your subsidiary is vital. Options include private limited company, public limited company, and limited liability partnership. Each structure has its own set of advantages and considerations, depending on the nature of your business.

3. Reserve Unique Name (RUN) and Digital Signature Certificate (DSC)

Before initiating the registration process, foreigners must obtain a Digital Signature Certificate and reserve a unique name for their subsidiary through the RUN system. The name should comply with the guidelines provided by the Ministry of Corporate Affairs.

4. Director Identification Number (DIN) and Directors

Directors of the subsidiary must obtain a Director Identification Number (DIN). Foreign nationals are also eligible to become directors, but they must comply with the regulatory requirements, such as obtaining a valid business visa.

5. Bank Account and Capital Infusion

Opening a bank account for the subsidiary is a crucial step. Additionally, the initial capital infusion must comply with the prescribed limits and be completed within a specific timeframe after the incorporation.

Registration Process

  1. Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN): Complete the necessary paperwork to obtain DSC and DIN for directors.

  2. Reserve Unique Name (RUN): Choose a unique name for your subsidiary and reserve it through the RUN system.

  3. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA): These documents outline the company’s objectives and rules of operation.

  4. Filing of Incorporation Documents: Submit the required documents, including MOA, AOA, and other statutory declarations, to the Registrar of Companies (RoC).

  5. Certificate of Incorporation: Upon approval, the RoC will issue a Certificate of Incorporation, officially recognizing the existence of your subsidiary.

  6. PAN and TAN Application: Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax purposes.

  7. Foreign Investment Reporting: Comply with reporting requirements for foreign investment with the Reserve Bank of India (RBI).

Navigating the process of Indian Subsidiary Registration for Foreigners requires careful consideration of legal, regulatory, and procedural aspects. At Tax and Services, we specialize in providing tailored solutions to simplify this process for our clients. Contact us today to embark on a seamless journey towards establishing your business presence in India.

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