SUBSIDIARY COMPANY INDIA
Subsidiary in India-FAQ For a foreign investor in India, it is very important to choose a right form of company or corporate entity that best fits its purposes and takes care of issues of liability and tax planning. International companies intending to do business in India will pay particular attention to Foreign Investors and Corporate Structuring Entry Strategies in India to save taxes to the maximum extent permitted by laws and foreign tax treaties.
Approval for Foreign Investment in India is also compulsory for foreign investors or foreign shareholders, both individuals and corporate shareholders, to receive government approvals for investment in India. In other cases, RBI Approvals for Foreign Investment in India is required. Sectors where RBI Approval for Foreign Investors is available under automatic route can be found in the Indian Sector Wise Guide for FDI.
As listed below, various steps are required to create a business in India before and after incorporation. See also Indian Business Forming Process. See also USA Corporation establishing an Indian subsidiary.
Private Limited Company is the most common type of business organization among foreign investors, including U.S. investors, to type a subsidiary, a joint venture, or a wholly-owned company.
International investors intending to open an Indian subsidiary must obtain government approval before investing in India. Some approvals are automatic,-RBI approvals-although these approvals require application. Special authorization-FIPB approvals-may be sought to invest above the approved amount. See our wise FDI guide for more information on various investment conditions in India. See also withholding tax rates for foreign companies in India under the Tax Treaties & Joint Ventures in India Contact us to enter India and set up business in India.
How many shareholders to create a private limited company?
To incorporate a private limited company, at least two shareholders are required. In a private limited company, at least two shareholders and up to 200 shareholders are permitted. Shareholders may be individuals or businesses, including international firms.
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How many directors a private limited company requires?
A private limited company must have at least two directors and up to fifteen shareholders.
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What's a director's requirement?
The Director must be over 18 and be a normal person. There are no restrictions on citizenship or residency. Foreigners may be directors in an Indian Private Limited Company.
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What is needed to start a private limited company?
Indian Rupees 100,000 (approximately US$ 2250) are required to form a private company in India. No upper limit exists.
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Is an office needed to start a private company?
An address in India where the company's registered office is needed. The premises may be commercial / industrial / residential to obtain MCA contact.
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Will you be present to join a Private Limited Company?
No, you won't have to be in India to register a private company.
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Which documents are required for registration?
Identity proof and address proof is mandatory for all Company's proposed directors. PAN Card is mandatory for Indian nationals. The owner of the registered office premises must also have a No Objection Certificate to have the registered office in his / her premises and submit proof of identity and address. We prepare Association Memorandum, Articles of Association and other papers.
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How long to establish a corporation in India?
We may create a Private Limited Company from 2 to 6 weeks. The time taken to register depends on the company submitting relevant documents and the pace of government approvals. To ensure speedy registration, please choose your company's unique name and make sure you have all the correct documentation before starting the registration process.
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Can a company be easily incorporated?
Yeah, the process can be expedited if all paperwork is signed and checked quicker and Private Limited Company's name is really special. Names similar to current private limited company / limited liability partnership / mark may be rejected and additional time may be taken to resubmit names.
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What's a Digital Certificate (DSC)?
A Digital Signature automatically sets the identity of the sender or sign while filing documents online. The Ministry of Corporate Affairs (MCA) requires directors to sign such application documents using their Digital Signature. Therefore, a Digital Signature is required for all Company Directors.
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What's DIN (Director Identification Number)?
Manager Identification Number is a unique identifier assigned to all company's current and proposed directors. Both current or prospective Directors must have a Director Identification Number. Director Identification Number never expires and can only have one Director Identification Number.
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How long is company registration valid?
When a corporation is incorporated, it will be successful and inexistent as long as annual compliances are routinely met. If annual compliances are not met, the Company will become a Dormant Business and maybe struck off the registry for some time. A struck-off business will recover up to 20 years.
—--
Which are the conditions for a Private Limited Company?
A private limited company will hold a board meeting every 3 months at least once. Besides board meetings, the Private Limited Company will hold an annual general meeting at east once a year. See: Corporate Compliance in India —-.
Can an NRI be a director in a private limited company?
Yeah, after receiving Director Identification Number, a Foreign National or NRI can be a director in an Indian private limited company. However, at least one board member must be a citizen India.
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Will a Foreign National or NRI hold private company shares?
Yeah, Foreign National or NRI Foreign Companies can hold a private limited company's shares subject to FDI guidelines.
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Will a Foreign Corporation own shares in a Private Limited Company?
Yeah, Foreign Companies can hold private limited company shares in India subject to FDI guidelines. See FDI Recommendations for different sectors.
—--
Can a Foreign Parent Company create an Indian subsidiary?
Indeed, international parent or holding companies, including U.S. parent companies, that incorporate a subsidiary as a 100%-owned private limited company in India subject to FDI guidelines. See FDI Recommendations for different sectors.
—--
What are FDI Guidelines for Foreigners in Private Company?
100% Foreign Direct Investment is allowed in India in many Automatic Route industries. RBI approvals-if the percentage required for different sectors is met. However, automatic approvals require an approval application.
Special authorization-FIPB approvals-may be obtained to invest above the standard percentage allowed for different sectors.
—--
What steps are required to integrate a private limited company in India?
See: Measures to Form Private Limited Company in India —-.
What are India's other company start-up requirements?
Besides starting a company in India, there are several other formalities. See: Other steps for establishing business in India for other requirements.
—- We also undertake consultancy related to -Establishing a Company in India — Tax Planning for Foreign Investors — Opening Branch in India — Starting a Business in India — FDI in India Sector Guide — Entry Strategies for Foreign Investors in India — Tax Planning for Foreign Investors — Joint Ventures in India — Outsourcing to India — Moves for Private Limited Company in India — Other Measures to East
Approval for Foreign Investment in India is also compulsory for foreign investors or foreign shareholders, both individuals and corporate shareholders, to receive government approvals for investment in India. In other cases, RBI Approvals for Foreign Investment in India is required. Sectors where RBI Approval for Foreign Investors is available under automatic route can be found in the Indian Sector Wise Guide for FDI.
As listed below, various steps are required to create a business in India before and after incorporation. See also Indian Business Forming Process. See also USA Corporation establishing an Indian subsidiary.
Private Limited Company is the most common type of business organization among foreign investors, including U.S. investors, to type a subsidiary, a joint venture, or a wholly-owned company.
International investors intending to open an Indian subsidiary must obtain government approval before investing in India. Some approvals are automatic,-RBI approvals-although these approvals require application. Special authorization-FIPB approvals-may be sought to invest above the approved amount. See our wise FDI guide for more information on various investment conditions in India. See also withholding tax rates for foreign companies in India under the Tax Treaties & Joint Ventures in India Contact us to enter India and set up business in India.
How many shareholders to create a private limited company?
To incorporate a private limited company, at least two shareholders are required. In a private limited company, at least two shareholders and up to 200 shareholders are permitted. Shareholders may be individuals or businesses, including international firms.
—--
How many directors a private limited company requires?
A private limited company must have at least two directors and up to fifteen shareholders.
—--
What's a director's requirement?
The Director must be over 18 and be a normal person. There are no restrictions on citizenship or residency. Foreigners may be directors in an Indian Private Limited Company.
—--
What is needed to start a private limited company?
Indian Rupees 100,000 (approximately US$ 2250) are required to form a private company in India. No upper limit exists.
—--
Is an office needed to start a private company?
An address in India where the company's registered office is needed. The premises may be commercial / industrial / residential to obtain MCA contact.
—--
Will you be present to join a Private Limited Company?
No, you won't have to be in India to register a private company.
—--
Which documents are required for registration?
Identity proof and address proof is mandatory for all Company's proposed directors. PAN Card is mandatory for Indian nationals. The owner of the registered office premises must also have a No Objection Certificate to have the registered office in his / her premises and submit proof of identity and address. We prepare Association Memorandum, Articles of Association and other papers.
—--
How long to establish a corporation in India?
We may create a Private Limited Company from 2 to 6 weeks. The time taken to register depends on the company submitting relevant documents and the pace of government approvals. To ensure speedy registration, please choose your company's unique name and make sure you have all the correct documentation before starting the registration process.
—--
Can a company be easily incorporated?
Yeah, the process can be expedited if all paperwork is signed and checked quicker and Private Limited Company's name is really special. Names similar to current private limited company / limited liability partnership / mark may be rejected and additional time may be taken to resubmit names.
—--
What's a Digital Certificate (DSC)?
A Digital Signature automatically sets the identity of the sender or sign while filing documents online. The Ministry of Corporate Affairs (MCA) requires directors to sign such application documents using their Digital Signature. Therefore, a Digital Signature is required for all Company Directors.
—--
What's DIN (Director Identification Number)?
Manager Identification Number is a unique identifier assigned to all company's current and proposed directors. Both current or prospective Directors must have a Director Identification Number. Director Identification Number never expires and can only have one Director Identification Number.
—--
How long is company registration valid?
When a corporation is incorporated, it will be successful and inexistent as long as annual compliances are routinely met. If annual compliances are not met, the Company will become a Dormant Business and maybe struck off the registry for some time. A struck-off business will recover up to 20 years.
—--
Which are the conditions for a Private Limited Company?
A private limited company will hold a board meeting every 3 months at least once. Besides board meetings, the Private Limited Company will hold an annual general meeting at east once a year. See: Corporate Compliance in India —-.
Can an NRI be a director in a private limited company?
Yeah, after receiving Director Identification Number, a Foreign National or NRI can be a director in an Indian private limited company. However, at least one board member must be a citizen India.
—--
Will a Foreign National or NRI hold private company shares?
Yeah, Foreign National or NRI Foreign Companies can hold a private limited company's shares subject to FDI guidelines.
—--
Will a Foreign Corporation own shares in a Private Limited Company?
Yeah, Foreign Companies can hold private limited company shares in India subject to FDI guidelines. See FDI Recommendations for different sectors.
—--
Can a Foreign Parent Company create an Indian subsidiary?
Indeed, international parent or holding companies, including U.S. parent companies, that incorporate a subsidiary as a 100%-owned private limited company in India subject to FDI guidelines. See FDI Recommendations for different sectors.
—--
What are FDI Guidelines for Foreigners in Private Company?
100% Foreign Direct Investment is allowed in India in many Automatic Route industries. RBI approvals-if the percentage required for different sectors is met. However, automatic approvals require an approval application.
Special authorization-FIPB approvals-may be obtained to invest above the standard percentage allowed for different sectors.
—--
What steps are required to integrate a private limited company in India?
See: Measures to Form Private Limited Company in India —-.
What are India's other company start-up requirements?
Besides starting a company in India, there are several other formalities. See: Other steps for establishing business in India for other requirements.
—- We also undertake consultancy related to -Establishing a Company in India — Tax Planning for Foreign Investors — Opening Branch in India — Starting a Business in India — FDI in India Sector Guide — Entry Strategies for Foreign Investors in India — Tax Planning for Foreign Investors — Joint Ventures in India — Outsourcing to India — Moves for Private Limited Company in India — Other Measures to East
