Starting an Indian Subsidiary is the most accessible and easy mode for setting up business in India by foreign companies as only one central law that governs the Indian Subsidiary Set up across India.The Government of India allows 100% FDI in most of the industries when set-up as a company. This also becomes a reason for foreign nationals and entities to end up their search on private company structure to establish their business.Withholding the majority, the only requirement is resident Indian director (not necessarily a shareholder but can be an employee) and a place of business in India. A Foreign National or an foreign entity incorporated outside India can invest in India and register a Company in India by acquiring shares of the company, subject to the FDI Policy of India. Once operations are started, repatriation of funds is easy and quick.

Minimum Requirement for Indian Subsidiary:

  • Minimum two directors are required for company formation and at least one should be a resident of India.
  • Minimum capital is not required for Indian Subsidiary Company in India.
  • Indian Subsidiary Company must hold at least 2 shareholders that can be either individual or any entity or a combination of both.
  • The Parent Company must hold 50% of total equity share capital holds.
  • Director Identification Number for all Directors.

Benefits of foreign company registration in India

Easy entry gate

Entry to Indian bUsiness sphere is easy as the Incorporation process and post-registration steps are now simplified with online processes and one window processing.

Permanent establishment in India

By registering a subsidiary in India, the foreign nationals are considered as a legal entity in India. 

Strategic control over operations

This structure helps the promoters to control over the operations and activities in a strategic manner remotely as  Indian resident director, the foreign entities benefit from the indirect control and supervision.

Expansion with limited liability

The ultimate goal of setting a foreign branch happens to be an expansion of the business. A limited liability is an added advantage when it comes to entering in the whole new market. Where you increase the brand value across the globe, you also secure your liability with this structure.

Legal Property Rights:

The company can acquire and use properties under its name and this would be under the control of any of the shareholders and cannot be used for personal purpose.

Easy Transfer of Share:

The shares can be transferred easily between the shareholders and a single company can hold the 100% of the shares legally.

Foreign Direct Investment:

Foreign Direct investments can be made without any prior government approval this acts as an easy to invest medium.

Scope Of Expansion

An Indian Subsidiary Company enjoys all the privileges of a Private Limited Company. The growth and expansion of business is easy because it raises capital from financial institutions, venture capitalist, and the investor.

Documents Required:

Documents required to register an Indian Subsidiary


Latest Passport size photograph of all Shareholders and Directors

PAN Card

PAN Card of shareholders and Directors.

Foreign nationals must provide a valid passport.

Identity Proof

Voter ID/ Passport/ Driving License of Shareholders and Directors

Address Proof

Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors

Business Address Proof

Electricity Bill/ Telephone Bill of the registered office address in India

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Rent Agreement

Rent Agreement of the registered office should be provided, if any

Constitutional documents

An apostilled copy of the charter, statutes or memorandum and articles.

If the instrument is not in English, a certified translation in English

List of Directors & Secretaries

It is to be provided on the letterhead of the company (apostilled or notarized)

Place of Business

Full address of the principal place of business of the foreign entity

Authorised Representative

Name and address of the Authorized Representative for a company who shall receive legal documents on behalf of the company.

Prior registrations

Previous place of business in India for earlier business.