An Overview: Registration of
Subsidiary of Foreign company

A foreign subsidiary company is one where 50% or more of its equity shares are held and owned by a company registered outside India. It is wholly or party owned and controlled by another company known as its parent company or holding company.
Such subsidiary company can be registered both as public and private limited company. It is one of the most fastest and easiest way for the foreign companies to enter into Indian market and expand its business.
According to FEMA guidelines, Foreign Direct Investment (FDI) is not allowed in most forms of business and hence it makes subsidiary company most suitable option for foreign entities to make investments in India. But how much FDI can be brought by a company is decided by the FEMA guidelines. One has to take RBI approval for making such investments. Also, there are a few industries where investments can be made through automatic route and only information of such investments need to be furnished to the Reserve Bank of India (RBI). Every industry is driven by a capped percentage of investment that can be brought through FDI.

How to Register Subsidiary company in India-
Procedure & Documents Required

• Key points to be considered
• No minimum capital required.
• No prior approval required for such incorporation from any department in India or parent company country
• It will enjoy the status of a subsidiaty company and will act similar to a private/public company
• Minimum two directors are required out of 1 should be Indian resident (resided in India for atleast 182 days in the previuos year)
• Minimum two shareholders required.