Introduction to Foreign Subsidiary
If you want to expand and establish your presence in India, then you require to incorporate a local company. Such an entity is also known as a foreign subsidiary. In a foreign subsidiary, the foreign parent company has more than 50% stake or share control in the subsidiary company. You can incorporate a foreign subsidiary as a joint venture company or a branch office under the provisions of the Companies Act, 2013.
Requirements for Incorporating a foreign subsidiary in India
- Two directors.
- Two shareholders.
- Registered Indian Address.
- Foreign parent company should have 50% or more shareholding in the foreign subsidiary company.
- Directors and Shareholders must apply for DSC (Digital Signature Certificate).
Clients who we have worked with recently
1. How to register a foreign subsidiary in India?
To register a foreign subsidiary in India, you would have to incorporate a company as a wholly owned subsidiary or a joint venture company. However, you would require to comply with the provisions of the Companies Act, 2013 and the Reserve Bank of India (RBI).
2. What is the minimum capital required to incorporate a foreign subsidiary in India?
There is no requirements pertaining to minimum capital for a foreign subsidiary in India. However, to ensure smooth compliance for incorporating a foreign subsidiary, it is better for you to have some capital while registering your foreign subsidiary.
3. How many directors are required to incorporate a foreign subsidiary in India?
Minimum of two directors are required to incorporate a foreign subsidiary in India. Out of this one director must be a resident director. This means the director must be a resident of India.
4. How many shareholders are required for a foreign subsidiary?
Minimum of two shareholders are required to incorporate a foreign subsidiary in India. There is no residency requirement for the shareholders of a foreign subsidiary.
5. What would be the preferred name for my foreign subsidiary?
Before incorporating a foreign subsidiary in India you must reserve the name. In case of a foreign subsidiary, it would be preferable to choose the name of the foreign parent for the foreign subsidiary.
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