Indian Subsidiary Company Registration in India

An Indian Subsidiary Company is a company registered in India that is owned or controlled by a foreign company or foreign individual.

In this structure, the parent company holds more than 50% of the shares of the Indian company, making it a subsidiary.

Indian subsidiary companies are governed by the Companies Act 2013 and must comply with Foreign Direct Investment (FDI) regulations set by the Government of India.

At Drop Solution, we assist international businesses in setting up their Indian subsidiary companies quickly with complete legal compliance.

What is an Indian Subsidiary Company?

An Indian Subsidiary Company is essentially a Private Limited Company in India where the majority of shares are owned by a foreign company or foreign investors.

Key characteristics include:

• Separate legal identity in India

• Foreign ownership or control

• Ability to conduct business in India

• Compliance with FDI rules and Indian corporate laws

This structure is commonly used by international companies expanding into the Indian market.

Benefits of Indian Subsidiary Company

Access to Indian Market

Foreign businesses can operate directly in India's large and growing market.

Separate Legal Entity

The subsidiary operates as a separate company from the parent company.

Limited Liability Protection

Liability is limited to the company’s assets.

Full Business Operations

Subsidiary companies can conduct full commercial activities in India.

Investment Opportunities

Foreign investors can invest through FDI routes approved by the government.

Process of Indian Subsidiary Company Registration

At Drop Solution, we follow a structured process for company incorporation.

Step 1 – Business Consultation

Understanding the parent company structure and investment plan.

Step 2 – Name Approval

Company name is applied through the MCA portal.

Step 3 – Document Preparation

MOA and AOA are drafted according to Indian company law.

Step 4 – Incorporation Application

Application is submitted to the Ministry of Corporate Affairs.

Step 5 – Certificate of Incorporation

Once approved, the company receives the Certificate of Incorporation.

Documents Required for Indian Subsidiary Company

For Foreign Directors / Shareholders

• Passport copy

• Address proof

• Notarized and apostilled documents

• Passport size photograph

For Registered Office

• Electricity bill or utility bill

• Rent agreement or property proof

• No Objection Certificate (NOC)

Additional approvals may be required depending on FDI regulations and sector policies.

Why Choose Drop Solution?

Drop Solution provides expert support for foreign businesses entering the Indian market.

Our services include:

• Foreign company registration consultation

• FDI compliance guidance

• Complete documentation support

• MCA incorporation filing

• End-to-end company setup assistance

We help international businesses establish their presence in India smoothly and legally.

Frequently Asked Questions (FAQs)

Can a foreign company own 100% of an Indian subsidiary?

Yes, in many sectors 100% FDI is allowed, subject to government policies.

What is the minimum number of directors required?

At least two directors, including one Indian resident director.

How long does subsidiary registration take?

Usually 10–15 working days, depending on document verification and approvals.

Can a subsidiary company repatriate profits to the parent company?

Yes, profits can be repatriated according to RBI and FEMA regulations.

Is Indian subsidiary the same as branch office?

No, a subsidiary is a separate legal entity, while a branch office is not.