Start Your Indian Subsidiary with N D Savla & Associates
Establishing a subsidiary company in India opens the gateway to one of the world’s fastest-growing markets.
At N D Savla & Associates, we provide complete assistance—from name reservation and incorporation to FEMA, RBI, and tax compliance—ensuring a smooth and fully compliant setup for your foreign subsidiary.
What is a Subsidiary Company?
A subsidiary company is controlled by a foreign parent company that holds more than 50% of its share capital.
Subsidiaries in India fall into two categories:
Wholly-Owned Subsidiary (WOS): 100% shares held by foreign company (allowed only in 100% FDI sectors).
Subsidiary Company: Parent company holds 50%–99% of the shares.
Why Register a Subsidiary in India?
Access to India’s Market
Expand into one of the world's largest and fastest-growing economies.
100% FDI Permitted
Most sectors allow full foreign ownership under the automatic route.
Separate Legal Entity
The subsidiary can own property, contracts, and operate independently.
Limited Liability
Parent company's liability is limited to shareholding only.
Diversification
Explore new product lines and revenue opportunities across India.
Perpetual Succession
The company continues despite management or ownership changes.
Requirements for Subsidiary Registration
- Minimum 2 Shareholders (foreign parent may hold 100%)
- Minimum 2 Directors (one must be a resident of India)
- Unique Company Name per MCA norms
- Registered Office in India
- No minimum capital requirement
- Compliance with Companies Act, FEMA, and RBI rules
Step-by-Step Registration Process
- Choose entity type – Private Limited is most preferred
- Obtain DSC and DIN for directors
- Reserve company name via SPICe+ or RUN
- Draft MOA & AOA aligned with FDI regulations
- File incorporation through SPICe+ with MCA
- Receive Certificate of Incorporation (COI)
- Apply for PAN & TAN
- Open company bank account
- Register for GST if required
Compliance Requirements
- FEMA regulations & RBI reporting (FC-GPR, FLA return)
- ROC annual filings & statutory audit
- GST monthly/annual filing
- Income Tax return filing
- Transfer Pricing compliance for parent-subsidiary transactions
Taxation for Indian Subsidiaries
- Corporate Tax: approx. 25.17%
- Withholding Tax: 40% for certain income, 50% for royalties/technical fees
- GST applicable on taxable goods/services
- Transfer Pricing rules apply for inter-company transactions
Why Choose N D Savla & Associates?
- Name reservation & incorporation support
- DIGITAL SIGNATURE (DSC) & DIN assistance
- Drafting of MOA, AOA & FEMA-compliant documents
- Complete ROC, RBI & FEMA compliance
- PAN, TAN & GST registration included
- Statutory audit & annual filing support
- Nominee Director & Virtual Office solutions