Register Subsidiary Companies in India Online
Our experienced CA/CS will help register subsidiary companies and support legal compliance.
Register Subsidiary Companies in India Online
Our experienced CA/CS will help register subsidiary companies and support legal compliance.
Understanding Subsidiary Companies in India
A subsidiary company is a corporate entity that is either partially or wholly owned by another company, known as the parent company. The ownership percentage of the parent company typically ranges from 51% to 99%.
If a parent company owns 100% of a subsidiary’s shares, it is termed a Wholly Owned Subsidiary.
If a company has multiple subsidiary companies, they are referred to as sister companies.
Benefits of Forming a Subsidiary Company
✅ Operational Independence: Allows the parent company to diversify and manage different business verticals efficiently.
✅ Limited Liability Protection: The financial liability of the subsidiary is separate from that of the parent company.
✅ Tax Benefits: Subsidiaries may enjoy tax advantages and reduced liabilities.
✅ Brand Expansion: Enables businesses to expand under different legal entities while maintaining overall control.
Incorporate a Subsidiary from Online Legal India
If you are looking to set up a subsidiary company under your existing brand, our team of experienced CA/CS professionals is here to assist with legal formalities and documentation.
📌 Fast & Hassle-Free Process
📌 Expert Guidance & Compliance Support
📌 Affordable & Transparent Pricing
💼 Contact SP Legal Consultants Today for Subsidiary Company Registration!
Understanding Subsidiary Companies in India
A subsidiary company is a corporate entity that is either partially or wholly owned by another company, known as the parent company. The ownership percentage of the parent company typically ranges from 51% to 99%.
If a parent company owns 100% of a subsidiary’s shares, it is termed a Wholly Owned Subsidiary.
If a company has multiple subsidiary companies, they are referred to as sister companies.
Benefits of Forming a Subsidiary Company
✅ Operational Independence: Allows the parent company to diversify and manage different business verticals efficiently.
✅ Limited Liability Protection: The financial liability of the subsidiary is separate from that of the parent company.
✅ Tax Benefits: Subsidiaries may enjoy tax advantages and reduced liabilities.
✅ Brand Expansion: Enables businesses to expand under different legal entities while maintaining overall control.
Incorporate a Subsidiary from Online Legal India
If you are looking to set up a subsidiary company under your existing brand, our team of experienced CA/CS professionals is here to assist with legal formalities and documentation.
📌 Fast & Hassle-Free Process
📌 Expert Guidance & Compliance Support
📌 Affordable & Transparent Pricing
💼 Contact SP Legal Consultants Today for Subsidiary Company Registration!
Advantages of Indian Subsidiary Company:
Registering a subsidiary company in India comes with multiple advantages, making it a strategic move for businesses looking to expand.
1.
Brand Recognition
Subsidiary companies can grow under the parent company's umbrella, leveraging brand reputation to gain credibility in the market. This also enhances the market value of shares.
2.
Reduction
of Risk
Since parent and subsidiary companies are legally separate entities, financial risks are contained. Losses incurred by a subsidiary do not directly impact the parent company. In cases of bankruptcy, the parent company is liable only if legal overlap between the two entities is established.
3.
Tax
Benefits
Subsidiaries enjoy tax advantages, especially when operating in different states or countries. Certain business expenditures can also be claimed as deductions, reducing the overall tax burden.
4.
Easy Merging and Acquisitions
Subsidiary companies allow for easier business expansion through mergers and acquisitions. Additionally, profit division between parent and subsidiary entities can provide tax-saving benefits.
5.
Separate Legal Identity
Under the Companies Act, 2013, a subsidiary company is considered a distinct legal entity, separate from its shareholders and directors. This enables:
✅ Legal independence – The company can initiate or defend lawsuits in its own name.
✅ Business continuity – Ownership or directorial changes do not affect its legal standing.
6.
Foreign Market Entry in India
Foreign companies can establish wholly owned subsidiaries in India through Foreign Direct Investment (FDI) under RBI guidelines and the Foreign Exchange Management Act (FEMA), 1999.
7.
Perpetual
Succession
A subsidiary company enjoys continuous existence, regardless of changes in management, directors, or shareholders. Even in case of insolvency, the company continues to operate smoothly.
8.
Limited Liability Protection
The personal assets of directors and shareholders remain protected in case of business losses. Financial risks are restricted to the company’s investments and liabilities only.
1.
Brand Recognition
Subsidiary companies can grow under the parent company's umbrella, leveraging brand reputation to gain credibility in the market. This also enhances the market value of shares.
2.
Reduction
of Risk
Since parent and subsidiary companies are legally separate entities, financial risks are contained. Losses incurred by a subsidiary do not directly impact the parent company. In cases of bankruptcy, the parent company is liable only if legal overlap between the two entities is established.
3.
Tax
Benefits
Subsidiaries enjoy tax advantages, especially when operating in different states or countries. Certain business expenditures can also be claimed as deductions, reducing the overall tax burden.
4.
Easy Merging and Acquisitions
Subsidiary companies allow for easier business expansion through mergers and acquisitions. Additionally, profit division between parent and subsidiary entities can provide tax-saving benefits.
5.
Separate Legal Identity
Under the Companies Act, 2013, a subsidiary company is considered a distinct legal entity, separate from its shareholders and directors. This enables:
✅ Legal independence – The company can initiate or defend lawsuits in its own name.
✅ Business continuity – Ownership or directorial changes do not affect its legal standing.
6.
Foreign Market Entry in India
Foreign companies can establish wholly owned subsidiaries in India through Foreign Direct Investment (FDI) under RBI guidelines and the Foreign Exchange Management Act (FEMA), 1999.
7.
Perpetual
Succession
A subsidiary company enjoys continuous existence, regardless of changes in management, directors, or shareholders. Even in case of insolvency, the company continues to operate smoothly.
8.
Limited Liability Protection
The personal assets of directors and shareholders remain protected in case of business losses. Financial risks are restricted to the company’s investments and liabilities only.
Requirements for Establishing an Indian Subsidiary Company
1. Shareholders
✅ A minimum of 2 shareholders is required.
✅ Shareholders can be individuals or foreign entities.
2. Directors
✅ At least 2 directors are mandatory.
✅ One director must be an Indian resident, permanently residing in India.
3. Capital Requirement
✅ No minimum capital is required to establish a subsidiary in India.
4. Time Required for Registration
✅ The registration process typically takes 12 to 15 days from the date of document submission.
Register Your Indian Subsidiary with SP Legal Consultants
💼 Expert CA/CS Assistance
📜 100% Compliance with Indian Laws
⏳ Quick & Transparent Process
🚀 Get Started Today!
Requirements for Establishing an Indian Subsidiary Company
1. Shareholders
✅ A minimum of 2 shareholders is required.
✅ Shareholders can be individuals or foreign entities.
2. Directors
✅ At least 2 directors are mandatory.
✅ One director must be an Indian resident, permanently residing in India.
3. Capital Requirement
✅ No minimum capital is required to establish a subsidiary in India.
4. Time Required for Registration
✅ The registration process typically takes 12 to 15 days from the date of document submission.
Register Your Indian Subsidiary with SP Legal Consultants
💼 Expert CA/CS Assistance
📜 100% Compliance with Indian Laws
⏳ Quick & Transparent Process
🚀 Get Started Today!
Documents Required:
Various kinds of documents are required for setting up an Indian subsidiary company. The following are the mandatory documents:
Documents from the parent company:
✅ Certificate of Incorporation
✅ Registered Name & Address of the Parent Company
✅ Board Resolution approving the subsidiary
Documents from the proposed directors (Foreign)
✅ Passport Copy
✅ Address Proof (Utility bill, bank statement, etc.)
✅ Scanned Photograph (Digital Copy)
✅ Mobile Number & Email ID
Documents needed from Indian directors and shareholders:
✅ PAN & Aadhaar Card
✅ Address Proof (Mobile Bill, Credit Card Bill, or Bank Statement)
✅ Digital Photocopy
✅ Mobile Number & Email ID
The documents you will obtain after the Indian subsidiary registration
✅ Certificate of Incorporation
✅ Memorandum of Association (MOA) & Articles of Association (AOA)
✅ Digital Signature Certificate (DSC)
✅ Fees Paid Challans
*If you want to open a bank account for the subsidiary company, a draft of the first board resolution is required.
Documents from the parent company:
✅ Certificate of Incorporation
✅ Registered Name & Address of the Parent Company
✅ Board Resolution approving the subsidiary
Documents from the proposed directors (Foreign)
✅ Passport Copy
✅ Address Proof (Utility bill, bank statement, etc.)
✅ Scanned Photograph (Digital Copy)
✅ Mobile Number & Email ID
Documents needed from Indian directors and shareholders:
✅ PAN & Aadhaar Card
✅ Address Proof (Mobile Bill, Credit Card Bill, or Bank Statement)
✅ Digital Photocopy
✅ Mobile Number & Email ID
The documents you will obtain after the Indian subsidiary registration
