Indian Subsidiary Registration with Calzone - Expand Your Business in India with Ease
Introduction
As businesses seek to expand and tap into new markets, forming a subsidiary company is one of the most effective ways to establish a strong presence. A subsidiary company allows a foreign or domestic parent company to set up an independent entity while maintaining operational control.
India, with its booming economy, vast consumer base, and supportive government policies, has become a hotspot for global businesses. Whether you are a foreign company looking to establish operations in India or a domestic company expanding into new sectors, registering a subsidiary company is the ideal approach.
At Calzone, we simplify the entire subsidiary registration process, ensuring that your business is legally compliant, tax-efficient, and ready to operate.
What is an Indian Subsidiary?
An Indian subsidiary is a company incorporated under Indian law where more than 50% of the shareholding is controlled by another company (parent company). The parent company can be a domestic or foreign entity, but the subsidiary operates as an independent company in India.
Types of Indian Subsidiaries:
- Wholly Owned Subsidiary (WOS) - The parent company owns 100% of the shares.
- Partially Owned Subsidiary - The parent company owns more than 50% but less than 100% of the shares.
Why Register a Subsidiary in India?
- Market Expansion - Gain direct access to India's massive consumer base.
- Brand Independence - Operate under a separate brand identity while retaining parent company control.
- Operational Control - The parent company controls decision-making and management.
- Tax & Financial Benefits - Subsidiaries can avail tax incentives, funding opportunities, and government subsidies.
- Separate Legal Identity - A subsidiary is legally independent, ensuring limited liability protection.
Calzone ensures that your subsidiary setup is smooth, efficient, and fully compliant with Indian regulations.
Eligibility Criteria for Indian Subsidiary Registration
- Minimum 2 Directors - At least one director must be a resident of India.
- Minimum 2 Shareholders - The parent company must own at least 50% of shares.
- No Minimum Capital Requirement - You can start with any amount of capital.
Calzone guides you through eligibility checks and ensures all legal formalities are met.
Documents Required for Indian Subsidiary Registration
For Directors & Shareholders
- Passport-size photographs.
- PAN Card & Aadhaar Card.
- Valid ID proof (Voter ID, Driving License, or Passport).
- Residential proof (Utility bill, Bank statement).
For Parent Company (if applicable)
- Certificate of Incorporation.
- Board resolution authorizing the investment.
- Notarized/Apostilled charter documents (MoA & AoA).
For Registered Office in India
- Utility bill of the business premises (Electricity, Gas, Water).
- Rental agreement & No Objection Certificate from the owner (if rented).
Calzone assists in preparing and verifying all necessary documents to avoid delays.
Step-by-Step Process for Subsidiary Company Registration with Calzone.
- Step 1: Digital Signature Certificate (DSC) for Directors
- Directors must obtain a DSC to sign electronic documents.
- Step 2: Director Identification Number (DIN) Application
- A unique DIN is issued to directors, allowing them to hold a legal position in the company.
- Step 3: Name Reservation on MCA Portal
- The subsidiary's name must be unique and approved by the Ministry of Corporate Affairs (MCA).
- Can be reserved through SPICe+ Part-A form.
- Step 4: Filing Incorporation Documents (SPICe+ Part-B)
- File incorporation documents, including MoA & AoA.
- Apply for PAN, TAN, EPFO, ESIC, and Professional Tax.
- Step 5: Submission & Approval from the Registrar of Companies (RoC)
- The RoC verifies documents and issues the Certificate of Incorporation.
- Step 6: Open a Bank Account & Start Operations
- Once incorporated, the subsidiary must open a bank account and deposit the investment capital.
Calzone handles everything, from document filing to final approval, ensuring a hassle-free experience.
Post-Registration Compliance for Indian Subsidiaries
- Annual General Meetings (AGM) - Must be held within 9 months of the financial year-end.
- Board Meetings - Minimum 4 meetings per year (one every 120 days).
- Filing Financial Statements (AOC-4) - Submit annual financial reports to the RoC.
- Filing Annual Returns (MGT-7) - Mandatory compliance filing for all companies.
- Statutory Registers & Tax Filings - Maintain registers of members, debenture holders, and related party transactions.
- GST & Income Tax Returns - File periodic GST & tax returns to remain compliant.
Calzone offers ongoing compliance support to keep your subsidiary in good legal standing.