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An Indian Subsidiary Company is a company incorporated in India that is owned or controlled by a foreign parent company. It is governed by the Companies Act, 2013 and regulated by RBI and FEMA guidelines for foreign investment. An Indian subsidiary operates as a separate legal entity, allowing foreign businesses to enter the Indian market with limited liability protection. The parent company’s liability is restricted to its shareholding in the subsidiary. Setting up an Indian subsidiary is ideal for foreign companies looking to expand operations, hire local employees, conduct commercial activities, and build a strong presence in India while complying with Indian laws.
Certificate of incorporation & MOA/AOA
Passport & address proof of directors
Utility bill & NOC from owner
Approval for Indian subsidiary setup
Parent company & director details
For proposed Indian directors
Company name reservation with MCA
Certificate of incorporation issued
Overseas entity must hold shares
At least one Indian resident director
Physical address in India required
Must comply with RBI & FEMA rules
A powerful entry route for foreign businesses in India.
Parent company liability is limited.
Independent identity under Indian law.
In most sectors under automatic route.
Operate, hire & contract locally.
Direct access to Indian customers.
Higher trust with banks & clients.
Shares transferable as per law.
Best structure for India expansion.
| Particulars | OPC | Private Limited Company | Proprietorship | Indian Subsidiary | Partnership Firm |
|---|---|---|---|---|---|
| Act | Companies Act, 2013 | Companies Act, 2013 | No Specific Act | Companies Act, 2013 + RBI/FEMA | Indian Partnership Act, 1932 |
| Registration Requirement | Mandatory | Mandatory | Optional | Mandatory | Optional |
| Number of Members | 1 | 2 – 200 | 1 | At least 1 foreign shareholder + 1 resident director | 2 – 20 |
| Directors / Partners | 1 Director | Min 2 Directors | Proprietor | Min 2 Directors (1 resident) | Min 2 Partners |
| Separate Legal Entity | Yes | Yes | No | Yes | No |
| Liability Protection | Limited | Limited | Unlimited | Limited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | Not Required | Conditional (as per turnover) | Not Required |
| Ownership Transfer | Not Allowed | Easy | Not Allowed | Allowed (as per law) | Restricted |
| Uninterrupted Existence | Yes | Yes | No | Yes | No |
| Foreign Participation | Not Allowed | Allowed | Not Allowed | Allowed (FDI compliant) | Not Allowed |
| Tax Rates | 22% – 25% | 22% – 25% | As per Slab | 25% – 30% corporate rate | As per Slab |
| Statutory Compliance | Moderate | High | Low | High (RBI/FEMA + MCA) | Low |
Approval from parent company for incorporation in India.
Director Identification Number and Digital Signatures for Indian directors.
Filing MOA, AOA, and incorporation forms with MCA.
Compliance with foreign investment regulations.
Filing of Form MGT-7 & AOC-4 with MCA annually.
Corporate tax returns must be filed annually in India.
Register and file GST if conducting taxable activities in India.
Maintain books of accounts and statutory registers.
An Indian Subsidiary Company is the best structure for foreign businesses looking to establish a presence in India with limited liability and separate legal identity.
With legal credibility, access to the Indian market, and compliance with RBI and MCA regulations, a subsidiary company ensures smooth operations while providing flexibility and long-term growth opportunities.
Qualified professionals ensuring accurate and compliant services.
Personal assistance from start to finish of every service.
Thousands of happy clients across India trust Bikramatax.
Quick turnaround time without compromising quality.
Premium services at transparent and competitive prices.
Trusted by businesses across India
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An Indian Subsidiary Company is a company incorporated in India that is owned or controlled by a foreign parent company. It has a separate legal identity and operates under the Companies Act, 2013 and RBI/FEMA regulations for foreign investment.
Any foreign company can set up an Indian Subsidiary. The subsidiary must have at least one Indian resident director and comply with RBI/FEMA regulations.
Yes, registration of an Indian Subsidiary is mandatory to legally operate in India. It must be incorporated with the Ministry of Corporate Affairs (MCA) and comply with FDI regulations.
Required documents include parent company incorporation certificate, MOA & AOA, passport & address proof of directors, registered office proof, and board resolution approving the subsidiary setup.
Registration typically takes 10–20 working days, depending on document verification, MCA approval, and RBI/FEMA filings.
Post-incorporation, the Indian Subsidiary must comply with MCA filings, RBI/FEMA regulations, annual returns, tax filings, GST (if applicable), and maintain proper books of accounts.
You can start by contacting us via call, WhatsApp, or email. Our experts will handle the entire registration process, including document filing, MCA incorporation, and RBI compliance.