Establishment of subsidiary companies or the wholly-owned subsidiaries, is certainly a very elegant and preferred means for extending one’s businesses to foreign countries of choice. Therefore, the majority of multinational corporations opt for setting up their subsidiary companies in the targeted countries, for the ultimate purpose of capturing market in the destination countries. In ours this webpage, we are offering rich, exclusive, and very profitable information about the subsidiary company formation, particularly in India.
Basic Requirments For Register Subsidiary
1. Indian Resident Director – Local director can be appointed without any equity participation in the subsidiary company and
2. Principal Place of Business in India – A rented or Leased Premises will be sufficient for this purpose.
Steps In Registration Of Subsidiary
1. Obtain Digital Signature for each Director of the proposed Subsidiary Company.
2. Apply for Directors Identification Number (DIN) of each proposed director of the Company.
3. Application for approval of Name of the Company.
4. Drafting of the Article and Memorandum of Association for the proposed Subsidiary Company and preparation of other documents for Incorporation of the Company.
5. Registration of Company.
Post Incorporation Complianes
1. Obtaining Permanent Account Number (PAN);
2. Opening of Bank Account for Subsidiary Company;
3. Obtaining various registrations including VAT, Service Tax, TIN, Excise etc depending on the requirements of the business of the Company;
4. Advance Foreign Remittance Reporting (AFRR) – To be submitted to Reserve Bank of India (RBI) within one month of receipt of FDI Remittance in India;
5. Allotment of Shares to the Holding Company within 180 of receipt of FDI;
6. Submission of FC-GPR Form with RBI within 30 Days of Allotment of Shares;
Documents & Information Required For Registration Of Subsidiary
1. Requirements for DIN Application of the Foreign Directors
a) Verification letter in Form DIR-4. Duly attested by the Consulate of the India Embassy in the Home Country of the Director or Apostils* (Worksheet for procurement of DIR-4 is attached).
b) Verification of Signatures of Subscribers in Form INC 10 : 1 Photo should be pasted in the box provided in the form. Duly attested by the Consulate of the India Embassy in the Home Country of the Director or Apostille*.
2. Details of at-least two Directors / Promoters of the company for obtaining DIN (Director’s Identifications Number)
– Complete Name
– Address (including City, State, Pin Code, Country)
– Father’s Name
– Date of Birth (mandatory)
– Passport Photograph of every proposed Director.
– Educational Qualification
– Place of Birth
– Two Copy of Pan Card as a proof of identity (mandatory requirement for Indian national).
– Two Copy of Aadhar Card/Voter Id/Driving Licence/Passport (One of these Mandatory for Indian Nationals)
– Two Copy of Passport as a proof of identity (mandatory requirement for Foreign national)
– Copy of Electricity Bill / Telephone Bill / Mobile Bill / Bank Statement as a Proof of Address.
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