IndiaFilingsIndiaFilings

Our Clients

  • Iinvolve - IndiaFilings Client
  • Duracool - IndiaFilings Client
  • Joyalukkas - IndiaFilings Client
  • Yes Bank - IndiaFilings Partner
  • Flipkart - IndiaFilings Client
  • Cello - IndiaFilings Client
  • EaseMyTrip - IndiaFilings Client
  • ICICI Bank - IndiaFilings Partner
  • Milton - IndiaFilings Client
  • DBS Bank - IndiaFilings Partner
  • Tirumala - IndiaFilings Client
  • Bombay Saving Company - IndiaFilings Client

Simple packages. Transparent pricing.

Transparent pricing and full support from incorporation to compliance.

Indian Subsidiary in Bhiwandi

Setting up an Indian Subsidiary in Bhiwandi can be a transformative step for expanding your business operations and accessing one of the world's largest and most dynamic markets. At IndiaFilings, we specialize in providing comprehensive and tailored services for incorporating an Indian Subsidiary. Our team of experts is here to guide you through the complexities of Indian Subsidiary registration, from understanding the legal requirements and navigating regulatory approvals to assisting with compliance and documentation. Partner with us for setting up an Indian Subsidiary and unlock India’s vast business potential to drive your company's growth and success in Bhiwandi.

Subsidiary Company

A subsidiary company is often referred to as a sister company, while the company that exercises control over it is known as the parent company or holding company. The parent company holds the authority to control the subsidiary company, either in part or entirely. The registration process for an Indian Subsidiary is governed by the Companies Act of 2013. According to the Companies Act of 2013, a subsidiary company can be defined as a company in which a foreign corporate body or parent entity holds a minimum of 50% of the total share capital. In essence, the parent company exerts a significant influence and control over the subsidiary company.

Types of Subsidiaries in India

In India, there are two primary categories of subsidiaries:

  • Wholly-Owned Subsidiary: In a wholly-owned subsidiary, the parent company possesses 100% ownership of the subsidiary's shares. These subsidiaries can only be established in sectors allowing 100% Foreign Direct Investment (FDI).
  • Subsidiary Company: In this category, the parent company owns 50% of the subsidiary's shares.

Before proceeding with establishing an Indian Subsidiary, obtaining approval from the Reserve Bank of India is a crucial prerequisite. This regulatory step ensures compliance with the country's foreign investment regulations and safeguards the interests of all stakeholders involved.

Advantages of Indian Subsidiary

There are several compelling advantages associated with setting up an Indian Subsidiary.

  • Entry into the Indian Market: India’s competitive environment offers a plethora of investment opportunities that attract foreign entrepreneurs to establish their subsidiary in Bhiwandi.
  • Foreign Direct Investment (FDI) in India: FDI involves investments by foreign companies in Indian private companies through share subscriptions or acquisitions. Using Indian Subsidiary as a route can immensely benefit foreign investors considering certain FDI limitations.
  • Perpetual Succession: This concept ensures that a company's existence remains intact regardless of management changes, membership transfers, or insolvency, ensuring seamless operations.
  • Limited Liability: This is a significant advantage that encourages opting for company formation over other structures, protecting personal assets of stakeholders.
  • Scope of Diversification: Provides a strategic avenue for business expansion, introducing diverse goods and services into the Indian economy.
  • Separate Legal Identity: Recognizes the company as a distinct entity, allowing it to engage independently in legal and business dealings.
  • Property Ownership and Rental: Grants the capability to purchase or rent properties in India, aligning with long-term operational strategies.

These advantages make establishing an Indian Subsidiary in Bhiwandi a strategic move for foreign businesses.

Regulatory Authorities for Indian Subsidiary

The Ministry of Corporate Affairs (MCA) is responsible for setting and enforcing the rules and regulations governing company registration and compliance. Registrar of Companies (ROC) offices handle the procedures related to company incorporation, ensuring companies follow legal requirements. Reserve Bank of India (RBI) regulates foreign currency exchange aspects, ensuring adherence to financial regulations.

Requirements and Key Facts about Company Registration in India

Here are the essential elements to consider for the incorporation of an Indian Subsidiary:

  • Company Name: A distinct name that doesn’t infringe on existing trademarks or business names.
  • Shareholders: Both the parent company and any two foreign nationals can be shareholders, with no mandatory Indian resident shareholder.
  • Share Capital: There is no minimum capital requirement for registration in India.
  • Directors: At least two are necessary, with at least one being an Indian resident.
  • Registered Address: Needed for official recording; options include a virtual office service.
  • Annual General Meeting (AGM): A statutory requirement to hold annually.
  • Company Secretary: Mandates filing secretarial returns and appointing a statutory auditor.

Taxation

Post incorporation, subsidiaries are subject to mandatory tax obligations.

  • Companies are subject to a profit tax rate of approximately 25.36%.
  • GST applies on domestic sales, necessitating monthly GST returns and an annual tax return.

Complying with these requirements is crucial for a hassle-free operation.

How to Register an Indian Subsidiary?

Here's a step-by-step guide on how to register an Indian Subsidiary:

  • Determine the Type of Company: Decide on the type of entity.
  • Obtain Digital Signature Certificate (DSC): Needed due to the online nature of the process.
  • Apply for a Director Identification Number (DIN): A mandatory MCA requirement for directors.
  • Name Approval: Seek approval for the preferential name via MCA portal.
  • Draft Memorandum of Association (MoA) and Articles of Association (AoA): Essential legal documents stating objectives and rules.
  • File Incorporation Documents: Submit requisite forms with MCA.
  • Payment of Registration Fees: Fees depend on authorized capital.
  • Obtain a Certificate of Incorporation (CoI): Once approved, ROC issues the CoI.
  • Apply for PAN and Tax Registration: PAN and TAN for tax obligations.
  • Open Bank Account: In the company’s name for business transactions.

Compliance with the described steps ensures a successful registration.

Compliance Requirements for Indian Subsidiary

To establish a legal and valid Indian Subsidiary, adherence to specific regulations is mandatory:

  • Foreign Exchange Management Act (FEMA): Compliance is necessary for foreign exchange transactions.
  • Companies Act, 2013: All subsidiaries must adhere to the act’s provisions.
  • Reserve Bank of India (RBI) Compliances: Necessary for foreign exchange management.
  • Income Tax Act, 1961: Filing annual returns as per tax regulations.
  • Annual Returns: Statutory requirement for filing with MCA and ROC.

Taxation of Indian Subsidiary

Indian subsidiaries are subject to defined tax regulations.

  • Income from various sources, including foreign subsidiaries, is taxable.
  • Certain tax rates apply to different kinds of income derived.
  • Surcharges apply based on income thresholds.
  • A health and education cess is levied on taxes.

Understanding these taxation policies is crucial for financial compliance.

FDI in Private Limited Company

100% Foreign Direct Investment is allowed in most sectors. However, some sectors require prior Central Government approval for foreign investments, such as security agencies, civil aviation, and certain media sectors. This ensures foreign entities can establish wholly-owned subsidiaries with 100% ownership subject to specific qualifications.

How IndiaFilings Can Assist with Indian Subsidiary

Unsure how to register an Indian Subsidiary? IndiaFilings offers comprehensive support throughout the process. From selecting a unique name and obtaining Director Identification Numbers (DIN) and Digital Signature Certificates (DSC) to assisting with PAN and TAN applications and setting up a dedicated bank account, our expert team streamlines everything.Ready to capitalize on the Indian market through Bhiwandi? Partner with us to start your Indian Subsidiary application today, ensuring smooth and compliant business growth.

Related Guides

India Business Setup
AgartalaAgraAhmedabadAjmerAligarhAllahabadAmravatiAmritsarAnandAsansolAurangabadBareillyBelagaviBelgaumBengaluruBhavnagarBhilaiBhiwandiBhopalBhubaneswarBikanerBilaspurBokaro Steel CityChandigarhChennaiCherthalaCoimbatoreCuttackDehradunDhanbadDurg BhilainagarDurgapurErodeEtawahFaridabadFirozabadGandhi NagarGandhinagarGhaziabadGorakhpurGulbargaGunturGurgaonGuwahatiGwaliorHubli DharwadHyderabadIndoreJabalpurJaipurJalandharJammuJamnagarJamshedpurJhansiJodhpurKakinadaKalaburagiKannurKanpurKayamkulamKochiKolhapurKolkataKollamKotaKottayamKozhikodeKurnoolLucknowLudhianaMaduraiMalappuramMalegaonMangaloreMangaluruMathuraMeerutMoradabadMumbaiMuzaffarnagarMysoreMysuruNagpurNandedNanded WaghalaNashikNelloreNoidaPalakkadPatialaPatnaPerinthalmannaPondicherryPrayagrajPuducherryPunePuruliaRaipurRajahmundryRajkotRanchiRoorkeeRourkelaSaharanpurSalemSangliShimlaSiliguriSolapurSrinagarSuratThiruvananthapuramThrissurTiruchirappalliTirunelveliTirupatiTiruppurTirurTiruvannamalaiTrichyUjjainVadodaraVaranasiVelloreVijayawadaVisakhapatnamWarangal

Frequently asked questions

Common questions about Establish Your Indian Subsidiary in Bhiwandi with IndiaFilings.

Setting up an Indian subsidiary in Bhiwandi offers advantages like access to a large market, potential for foreign investment, limited liability, and operational benefits exclusive to the competitive Bhiwandi economy.
IndiaFilings offers end-to-end services in Bhiwandi, including guidance on registration processes, legal compliance, documentation, and post-incorporation support, ensuring a smooth setup of your subsidiary.
Subsidiaries in Bhiwandi must comply with the Companies Act 2013, RBI guidelines, GST registration, annual filing requirements, and adhere to the Foreign Exchange Management Act for foreign companies.
Not all sectors permit 100% Foreign Direct Investment in Bhiwandi. Wholly-owned subsidiaries can only be established in sectors that allow full foreign ownership according to government policies.
An Indian subsidiary in Bhiwandi requires a minimum of two directors, with at least one director being a resident, ensuring compliance with local governance standards.
Bhiwandi's competitive market environment offers numerous investment opportunities, access to a broad customer base, and a strategic location, making it an attractive destination for foreign subsidiaries.
No, Bhiwandi does not impose a minimum capital requirement for the registration of subsidiary companies, allowing flexibility in investment planning for foreign entities.
Key registration steps in Bhiwandi include obtaining Digital Signature Certificates, applying for director identification, name approval process, and filing incorporation documents with the Registrar of Companies.
Yes, IndiaFilings provides continuous support even after registration, ensuring subsidiaries in Bhiwandi meet compliance norms like tax filings, statutory audits, and fulfilling other legal obligations.
Bhiwandi is ideal for foreign subsidiaries due to its strategic business location, connection to major Indian markets, investment-friendly policies, and supportive infrastructure.