Article contains Compliance chart for Incorporation and other related compliances for wholly owned and other subsidiary Companies in India. It further explains provisions related to Directorship in Subsidiary or Wholly Owned Subsidiary Company, Mandatory Declaration to be filed under Section 89 of the Companies Act, 2013 in case of Wholly Owned Subsidiary Company and Compliances under FEMA, RBI/FDI Reporting in case the Holding Company is a Company Incorporated outside India.
Types of Subsidiary Company
Important Note: The Holding Company Holding 99.99% shares can change the nominee of 0.1% shares at any time by passing the Board Resolution as such nominee has only be appointed by the Holding Company to comply with the provisions of Section 3 of the Companies Act, 2013 stating the minimum requirements of 2 shareholders in case of Private Company.
Directorship in Subsidiary or Wholly Owned Subsidiary Company:
Minimum No. of two directors in case of Private Limited Company and out of those two one director should be resident in India as laid down under the Companies Act, 2013 and rules made there under.
Resident in India means a person should resides in India for a period of 182 days or more in fiscal year.
Mandatory Declaration to be filed under Section 89 of the Companies Act, 2013 in case of Wholly Owned Subsidiary Company:
About the Author
Author is Divya Goel, ACS working as Assistant Manager- Company Secretary with Neeraj Bhagat & Co. Chartered Accountants, a Chartered Accountancy firm helping foreign companies in setting up business in India and complying with various tax laws applicable to foreign companies while establishing their business in India.