Understanding Subsidiary Companies in India
A subsidiary company is a corporation or business entity that is partially or fully owned by another company, known as the parent company (holding 51% to 100% shares). If any company has more than one subsidiary company, each of them is called a sister company.
Incorporate a Subsidiary from Online Legal India
Parting a company or creating a new subsidiary under the brand to achieve operational support and focus on the business, a company can build a subsidiary.
If you have a parent company and want to create a different entity as a subsidiary company, contact Online Legal India. We have highly experienced professionals to assist you in all formalities to meet your requirements.
What are you waiting for? Contact us now.
Advantages of Indian Subsidiary Company
There are several compelling advantages associated with registering a subsidiary company in India:
Brand Recognition
The subsidiary companies can grow in size under the umbrella of a Parent Company, establish brand recognition, and increase the value of shares in the market.
Reduction of Risk
Legally separated entities mitigate the risk of loss. When a subsidiary faces any loss, it does not directly transfer back to the parent company.
Tax Benefits
Subsidiaries can receive tax advantages, especially if a subsidiary originated in a different state or country.
Easy Merging and Acquisitions
Company merging and acquisitions are easy. The company can save taxes because the profit of the subsidiary gets divided from the parent company.
Separate Legal Identity
Under the Companies Act 2013, it gets a separate and distinct legal entity. It can initiate legal actions in its own name.
Foreign Entry to the Indian Market
Foreign companies can establish wholly owned subsidiaries by Foreign Direct Investment (FDI) in India.
Perpetual Succession
The company’s existence remains intact regardless of management changes, membership transfers, or insolvency.
Limited Liability
Protects the personal assets of directors and shareholders. Severe losses do not affect their personal property.
Requirements for Establishing
Shareholders
At least 2 shareholders are essential. They can be individuals or foreign entities.
Directors
At least 2 directors are mandatory; one must be an Indian resident residing permanently in India.
Capital
For establishing a subsidiary, there is no minimum capital threshold.
Time Required
The registration process takes from 12 to 15 days from the date of document submission.
Documents Required
Documents from the Parent Company
- Certificate of incorporation
- Registered Name and address of the company
- Board Resolution
From Proposed Directors (Foreign)
- Passport copy
- Address proof
- Scanned photograph or digital photocopy
- Mobile Number & Email ID
From Indian Directors & Shareholders
- PAN and Aadhaar
- Mobile Bill, Credit Card Bill, or Bank Statement
- Digital Photocopy
- Mobile Number & Email ID
Documents Obtained After Registration
- Certificate of Incorporation
- MOA and AOA
- Digital Signature
- Fees paid Challans
If you want to open a bank account for the subsidiary company, a draft of the first board resolution is required.
Package Details
Start Up
+18% GST
- Incorporation Only
- Call, Chat, Email Support
- No hidden charges
Basic Plan
+18% GST
- Incorporation
- Only GST Registration
- Auditor Appointment
- Commencement of Business
- Call, Chat, Email Support
- No hidden charges
Smart Plan
+18% GST
- Incorporation
- Only GST Registration
- 1 Year AFC
- Call, Chat, Email Support
- No hidden charges
Mega Plan
+18% GST
- Incorporation
- Only GST Registration
- 1 Year AFC
- 1 TM Application
- 12 Months GST Return Filing
- Call, Chat, Email Support
- No hidden charges
How We Work?
Our experts manually validate the documents and process filing.
Fill the Form & Make the Payment
Expert Will Call You & Receive Necessary Documents
Obtain DIN and DSC
Filing MoA and AoA on the MCA portal
Your Documents will be Filed & Submitted to the ROC
Congratulations! Certificates Will Be Provided