Before knowing how to incorporate a foreign subsidiary company in India we need to know a few terms as defined below:

Subsidiary Company

A foreign subsidiary company is a company controlled by another corporation with more than 50% voting shares or where the parent company controls the composition of the Board of Directors. When a parent company has a foreign subsidiary, the subsidiary must abide by the laws of the nation in which it operates. As a result, if a foreign company is formed in India, it must adhere to Indian regulations.

A foreign subsidiary company is a company that is entirely or partially owned by the parent company. It also operates in one nation while its parent company is located in another. For example, a parent corporation based in the United Kingdom is conducting business in India through a subsidiary company.

Foreign Company

A foreign company, according to section 2(42) of the Companies Act, 2013, is any corporation or corporate entity established outside of India that has the following characteristics:

• (a) has a scope of business in India whether by itself or through a representative, physically or through electronic mode; and
• (b) performs any business activity in India in any other manner.

This foreign subsidiary company must follow the norms and rules of the domestic legislation of the nation in which it is located. It should not be bound by the same laws as its parent company.

What is a foreign subsidiary company?

A foreign subsidiary company is a company that is entirely or partially owned by the parent company. It also operates in one nation while its parent company is located in another. For example, a parent corporation based in the United Kingdom is conducting business in India through a subsidiary company.

Benefits Of Foreign Subsidiary Company in India

• If the subsidiary company is relevant to industries like as cars, agriculture, electronic equipment, and so on, no previous RBI clearance is necessary for incorporation.
• Depending on the industry in which they operate, subsidiary companies can take advantage of a variety of tax benefits including incentives and exemptions provided by the Indian government.
• Foreign subsidiary enterprises create a large number of work possibilities, boosting the country's economic growth and national wealth.

Process Of Foreign Subsidiary Company Registration In India

The process of foreign subsidiary company registration in India follows the below-mentioned steps:-

• Application for Name Approval- Reserving a company name is the first move toward a foreign subsidiary company registration. It is acceptable to use the same name as the parent company with the addition of the term "India" in the case of a foreign subsidiary. The name is permitted as long as it is not identical to any existing companies or is not illegal.

• Procurement of DSC- In the meantime, the Digital Signature Certificate (DSC) for the prospective directors of the Company will be obtained. This DSC is necessary to electronically file the Incorporation application and will be utilised for future compliance reports.

• Application for Incorporation- The Company Registration procedure comes to a close at this stage. It necessitates the filing of the Company's Memorandum and Articles of Association, as well as many additional papers signed by the prospective directors and shareholders.

Post-Incorporation Compliances

• Open a bank account: A bank account, including an Overseas Holding Company, is necessary to receive subscriber subscription money.
• ARF (Advance Reporting Form): This is a form used to report on funds/subscription money received within thirty days of the date the funds were received by the RBI.
• Share Allotment: Within two months of the subsidiary company's creation, the shares shall be distributed to the subscribers.
• Form FC-GPR Submission To RBI: Within 30 days after the date of issue of the shares to their subscribers, the form FC-GPR shall be filed to the RBI.

Documents Required for a Foreign Subsidiary Company

Basic Documents/ Informations Required

• Name of subscriber
• Individual subscriber's name
• Name of the foreign company's designated shareholder (parent company).
• Director DIN (at least 2)
• Proposed Directors/subscribers/nominee shareholders' mobile number/email ID/place of birth/educational qualification and occupation
• The goal of the planned business.
• Proposed paid-up capital Percentage of subscribers' shareholdings
• PAN Card of the director/subscriber/nominee (for Indian nationals) must be self-attested.
• Self-certified copy of the suggested director's identification proof (Voter Identification / Passport / Driving Licence)
• Residential Proof (Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill) (not older than two (2) months)
• Nominee / Subscriber / Director
• A self-attested copy of the director's/subscriber's/Aadhaar nominee's card (for Indian nationals)
• In the case of international nationals, a self-attested copy of their passport is required.
• Information on other companies' directors:
• The Company's Name (s)
• Designation
• Percentage of shares held Nominal Value of Shares
• Copy of the proposed registered office address's phone/mobile bill/electricity bill (not older than two months).
• 3 current passport-size photographs of each potential director/subscriber
• Subscribers' DSC.

Other Essential Documents

• Approval of the name(name valid for twenty days only).
• Spice e-Form (INC-32) attachments such as a notarized affidavit of non-acceptance of a deposit
• a declaration signed by an attorney, a Chartered Accountant, a Cost Accountant, or a Company Secretary must be duly attested.
• Each subscriber and director shall sign an Affidavit on the fully attested 
• As mentioned in the MOA, a self-certified copy of the prospective directors' and subscribers' PAN cards.
• Self-certified document of proposed directors' and subscribers' address proof as mentioned in the MOA
• As required by the MOA, a self-certified copy of the prospective directors' and subscribers' identity evidence.
• a copy of the lease/rent contract
• Non-objection Certificate from the landlord

Conclusion

Online Legal India provides you with the service of foreign subsidiary company registration in India at an affordable cost. One does not have to spend a lot on registration. One can do their foreign subsidiary company’s registration online by the legal experts who have years of experience and are the best in their work.

The specialists of Online Legal India provide the best services to their customers and help them throughout the entire process. Foreign subsidiary company registration is as important as any other kind of company registration in India and it is kind of compulsory to register it as earlier as possible after its institution.