Subsidiary of Foreign Company

100% Foreign Investment is allowed in most sectors

  1. Two Digital Signature (DSC) and DIN
  2. Name Approval of the Company
  3. Drafting of MOA & AOA
  4. Certificate of Incorporation
  5. PAN Card and TDS Number

A company may be easily registered by foreigners or by one or more foreign corporations as shareholdes to an Indian company. However the provisions of the Foreign Exchange Management Act (FEMA) must be completely complied with

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Subsidiary of Foreign Company Registration

Subsidiary of Foreign Company

The inflow of foreign exchange to be invested as capital in the business is known as foreign direct investment. The FDI is not permissible in proprietorship and partnership business. The foreign investment in the shares of a company or capital of the LLP is 100% open under automatic route for most of the sectors, wherein no prior approval from the government is necessary, however, after entity registration in India a formal reporting to RBI is necessary within 30 days of capital infusion. We are known for quality advisory on FDI matters in India, and with proper documentation in place, a company with FDI can be incorporated within a week time.

Subsidiary Company Registration

Important Conditions for Subsidiary of Foreign Company

Check FDI Limit

Check FDI Limit

Most of the sectors are open for foreign direct investment in India under automatic route, without any prior approval for incorporation of the company.

One Resident Director

One Resident Director

One director of the company must be resident in India. A person is said to be a resident when he/she stays in India for at least 182 days in during the FY.

Business Visa

Business Visa

The directors/shareholders visiting India for signing documents must be on a Business Visa; otherwise, documents must be legalised/ attested.

Attestation / Apostille

Attestation / Apostille

All documents of foreign origin and those executed in a foreign territory need to be legalised by way of attestation by Indian high commission or Apostille.

Professional Fee for Setting up Subsidiary in India with FDI


$ 499/-
  • Two Digital Signature (DSC) and DIN
  • Name Approval of the Company
  • Drafting of MOA & AOA
  • Certificate of Incorporation
  • Followup with the ROC until issue of the COI
  • PAN Card and TDS Number


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$ 699/-
  • Everything from Basic Pack +
  • Support in documentation
  • Bank A/c Opening Support
  • GST Registration for one location
  • Import Export Code (IEC)
  • MSME Registration


$ 999/-
  • Everything from Silver Pack +
  • Assistance in Capital Remittance
  • CA Certification of FDI
  • CS Certification of FDI
  • FDI Reporting in FC-GPR to RBI

Documentation of the Company & Promoters

Documentation of the Promoters

  1. Two Photographs of Promoters
  2. Duly Attested Copy of Passport
  3. Identity Proof of each Promoter
  4. Address Proof of Promoter
  5. Signed Declaration (s) from Promoters
  6. Documents of Resident Indian Director

Documentation of Parent Foreign Company

  1. Certificate of Incorporation & Address Proof
  2. MOA & AOA of Foreign Company

Documentation for the Company Registered Address

  1. Proof of Registered Office
  2. NOC from the owner of premises.

Procedure - Subsidiary of Foreign Company



All documents which are signed by the proposed director or shareholder being a foreign national including their passport and address proof need to be legalized either through Indian Embassy or to be apostilled as per Hague convention. However, in case the foreign person comes to India with original documents then attestation can be done in India provided he came on a business Visa.



DSC is the equivalent of physical or paper signature in digital format. As the application for company registration is filed online with Digital Signatures of the director, hence the process starts with the issuance of the digital signature for all the directors/promoters. Photo, Passport and Address proof is to be submitted along with Form for the issuance of DSC.



The application for registration of company or LLP is filed in one consolidated form known as Spice Form. The applicant needs to annex scanned copy of documents, MOA, AOA and proof of registered office in India along with the NOC from the owner of premises. With the approval of the same by Registrar of Companies, Certificate of Incorporation is issued.



After company incorporation, the Bank A/c has to be opened, wherein the foreign direct investment must reach within 180 days of incorporation of the company with advance intimation to Banker. Post investment the company is under strict liability to file adequate reporting with the RBI reporting of FDI received within 30 Days.

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The Foreign Investment in India - Options & Important Information

A subsidiary of Foreign Company

A subsidiary of Foreign Company

A foreign company can start full-fledged operation in India by registering a subsidiary company. Such a company is treated at par with any other Indian Company for all legal purposes. As per law, a minimum of two shareholders is necessary hence apart from the parent company at least one share has to be held by any other person.

Project Office of Foreign Company

Project Office of Foreign Company

RBI has granted general permission to setup project offices by a foreign company provided the agreement for such a project is already signed and the project is awarded. The registration is project specific and for the prescribed time, however, it can be further extended on an application

Company Owned by Foreign Persons

Company Owned by Foreign Persons

One or more person of foreign origin can start a company in India with or without sharing ownership with any Indian Person, However, an Indian resident director is necessary. The investment in the company must be made through the banking channel and in foreign exchange within 180 Days of its Incorporation.

Branch Office of Foreign Company

Branch Office of Foreign Company

A foreign company can operate in India by registering a branch office with the prior permission of the RBI and registration with the ROC as a foreign company. To register as a branch office the parent company must be 5 years old with a net worth of USD 1,00,000/-. The income of such branch office is taxed at 40 %.

LLP Owned By Foreign Persons

LLP Owned By Foreign Persons

The LLP in India is a new concept and up to the year 2015 the FDI for LLP was allowed only through approval route, however, now foreign investment in the Limited Liability Partnership is available at par with the Companies. The FDI Reporting to RBI is though differently done. Hence any two-person including all foreigner can promote an LLP in India.

Liaison Office of Foreign Company

Liaison Office of Foreign Company

For a limited purpose of promoting awareness of the products or services of the foreign parent company or to function as a channel of communication, a Liasion Office can be opened, with prior permission of the RBI and further registration with the ROC provided the Parent Company is 3 Years old and have net-worth more than USD 50,000/-.

India Resident Director for Company

India Resident Director for Company

Prior to enactment of Companies Act, 2013, there was no provision to necessarily have a resident director on the board of the company, However, since then, it is a mandatory requirement. A person is said to be resident in India if during the previous financial year he was in India for at least 182 days. for this purpose citizenship is immaterial.

Registration of Foreigner with FRO

Registration of Foreigner with FRO

Every foreigner staying in India on Employment Visa is required to get themselves registered with the Foreign Registration Office having territorial jurisdiction over the place of usual residence of such foreigner. If required, for an overstay the foreigner must apply before the FRO for permission or extension.

Registered Address of Company

Registered Address of Company

A registered office is required to be maintained by the company under section 12 of The Companies Act 2013, which must be capable of receiving and acknowledging all communications and notices as may be addressed to it. Having registered office address at coworking space is not acceptable unless this is a lockable area.

Employment Visa & Their Extension

Employment Visa & Their Extension

An employment visa is sometimes required by the foreigner to serve as an employee in an Indian Company and in general while executing a project awarded to the foreign parent company. We provide assistance in getting the business visa and for their extension in India.


What are the sectors where FDI is prohibited in India?

  • Lottery Business including Government /private lottery, online lotteries, etc.
  • Gambling and Betting including casinos etc.
  • Chit funds/ Nidhi company
  • Trading in Transferable Development Rights (TDRs)
  • Real Estate Business or Construction of Farm Houses
  • Manufacturing of Cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes
  • Sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than MRTS).

What kind of business entities a foreign investor can set up in India?

In India there are various types of business which can be set up such as a proprietorship, partnership, one person company, LLP, society, trust etc. However the foreign exchange management act allows a foreign investor to invest in India only in following categories of entities

  • Limited Liability Partnership
  • Private Limited Company
  • Public Limited Company
  • Section 8 Company (However with compliance of FCRA)

A foreign investor thus can not invest in a One Person Company, Proprietorship, Partnership Firms. The investment in society, trust and section 8 company or any other association of person is permitted subject to compliance of Foreign Contribution Regulation Act (FCRA)

Who all can invest in India, i.e. constitution and nature of investing entity?

Following type of foreign entities can invest in India

  • a Foreign Company,
  • a Body Corporate Incorporated Outside India, including a firm or other association of individuals
  • Non-Resident Indians
  • Person of Indian Origin

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