" Incorporation of a Foreign Subsidiary in India "

  • CA Advocate CS
Incorporation of foreign subsidiary in india Incorporation of company with foreign subscribers Wholly owned subsidiary of foreign company in india

By the term Foreign Subsidiary Company, we mean to refer to those companies who are either wholly owner or are partly owned by their parent companies. These parent companies are situated and are operating in different country. Let us take an example, a company which is incorporated in the London is also executing the same business activities with the help of a subsidiary company in India as well.

It is very important that these foreign subsidiary companies should follow the rules and regulation which are laid down in the corresponding country’s domestic laws. The laws of the parent company’s country are not to be followed.

Registration of a Foreign Subsidiary Company in India

The following steps needs to be followed in order to register a Foreign Subsidiary Company:

1.      Firstly, the applicant has to file Form INC 1 in order to register the name of the company. Apart from that two directors need to provide their Digital Signature Certificate (DSC) and the rest of Directors will have to apply for the Director Identification Number (DIN).

2.      Before the company gets incorporated, it is important the name of Company is approved by the government.

3.      It is also acceptable that the subsidiary company can use the name of their parent company by adding “India” to the name.

4.      In case the parent or the foreign company has a registered trademark of their own, then the subsidiary company incorporated in India can use the same.

5.      Next, you have to visit the official page of Ministry of Corporate Affairs and login to the portal. You will see “RUN” in the MCA Services section. The applicants will get a new online form. In the said form the following details will have to be provided:

·         The Entity type

·         The Corporate Identification Number (CIN)

·         The Proposed Name

·         A No Objection Certificate

·         Documents related to trademark registration

·         An apostille copy of the resolution of the foreign company

6.      As soon as the Registrar approves the name of the company the applicant will have to file the Form INC 7 which is for the incorporation of the company.

7.      Form DIR 12 which asks for all the details related to the appointment of the directors as well as the main personal staff.

8.      Form INC 22 which has to be submitted along with the MoA as well as the AoA of the Company.

9.      The applicant will also have to pay the ROC fee as well as the Stamp Duty through an electronic mode.

10.  After the fees has been paid, the ROC will verify the submitted documents. The Form INC 22 and DIR 12 are accepted via the Straight Through Process (STP).

11.  Finally, you will receive you Incorporation certificate.

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