A Indian Subsidiary Company is also known as a subsidiary or a sister company of parent company; andthe company which practices control over it, is called as the parent company of subsidiary company, or holding company. A subsidiary company always controlled by the parent company (holding company)partially or fully.A Indian subsidiary company is termed as subsidiary or sister company of holding or parent company.bellow given content, we will understand detailed information of Indian Subsidiary company registration procedure, documentation, types, and procedure required for it.
An Indian subsidiary, the parent company must own at least 50% or more of the subsidiary. When the parent company owns 100% of the subsidiary of parent company is known as a wholly-owned or fully owned subsidiary. But main thing is that the subsidiary company of a foreign parent company is a separate legal entity from parent company, and the subsidiary company is obligated to function under the rules and compliances of the country where it is situated or registered.
For forming an Indian subsidiary company there was various advantages in the business compliances in the case of the Indian subsidiary the following advantages will apply.
1. Independent legal structure—The Indian subsidiary is an independent or separate legal structure from its parent company and it is regulated under the Indian commercial legislation.
2. Transfer of shares: – The shares purchased by a shareholder can be simply transferred or exchanged to another party or person, after signing a share transfer form and a share certificate.
3. Acquire property in India: – As the subsidiary is an independent structure, it is allowed to acquire properties in India.
4. Incorporation with foreign direct investment: – as mentioned above, Foreign Direct Investment is widely allowed to Indian subsidiary companies and this applies to most of the economic activities that are available in those country.
As per detailed defined under the revised Companies Act 2013, a Indian subsidiary is defined as a company in which a foreign legal entity owns at least 50% of the total share capital. The definition will explain that foreign company having legal rights and authorities on the structure of the board of directors of the subsidiary company.
1. For Office Address: Office Address proof (Electricity bill or rent agreement) and latest self- attested electricity bill in case of rented accommodation
2. Indian national: Pan card compulsory, Address proof (latest Electricity bill or rent agreement) and latest self-attested electricity bill in case of rented firm, photo Id proof (passport or driving license)
3. Foreign Nationals: Passport (mandatory), Address proof (electricity bill, telephone bill, latest bank statement or passbook or rent agreement in case of rented accommodation and latest electricity bill. Document must be attested by the Indian Consulate Photo Id Proof- Government license any types or document which clearly shows full name of applicant, photo with clear resolution and date of birth
Minimum Requirement To Incorporate Indian Subsidiary Company;
1. At list Two Directors
2. Two Shareholders
Form DIR-12 Which Means particulars of appointment of directors and key managerial personal.
Form INC-22 Which means MOA of the company along with notice of situation clause.
THE Indian Subsidiary Company is determined the same as the other type of Indian Company, and the rules determined the Indian Company are the same for the Indian Subsidiary company. If the applicant company complies with the above-mentioned incorporation procedure along with the proper documentation, it will get the Certificate of Incorporation at earliest.