10 Steps to Registering a Foreign Subsidiary Company in India
Expanding a business into India is
an exciting opportunity, but navigating the legal and procedural requirements
can be challenging. Groom Tax specializes in foreign company incorporation
in India, simplifying the process for international businesses. Here’s a
step-by-step guide to foreign subsidiary company registration in India,
ensuring a smooth setup.
1.
Choose the Right Business Structure
The first step is to choose an
appropriate structure for your Indian subsidiary. Most foreign companies opt
for a Private Limited Company due to its flexibility, limited liability, and
the ability to bring in foreign investors. Groom Tax helps you understand these
options, ensuring your chosen structure aligns with Indian legal requirements.
2.
Obtain Digital Signatures (DSC)
Each director and shareholder needs
a Digital Signature Certificate (DSC) to complete online forms with the
Ministry of Corporate Affairs (MCA). This electronic signature ensures secure
document submission. Groom Tax facilitates the DSC process, ensuring a quick
start for foreign company registration in India.
3.
Apply for Director Identification Number (DIN)
The DIN is a unique identifier that
allows individuals to serve as directors for companies registered in India.
Foreign nationals can also apply, making it essential for directors in a
foreign subsidiary. Groom Tax guides you through the DIN application process to
ensure compliance.
4.
Secure Name Approval
Selecting and securing a unique name
for your company is an important step. The name must meet MCA’s guidelines to
avoid rejection. Groom Tax assists in conducting a name search and filing the
application for name approval, minimizing the risk of delays.
5.
Draft Memorandum and Articles of Association (MOA & AOA)
The Memorandum of Association (MOA)
outlines the company’s purpose, while the Articles of Association (AOA) specify
operational guidelines. These are essential documents in foreign subsidiary
company registration in India. Groom Tax helps draft these documents in
accordance with Indian regulations.
6.
File Incorporation Documents with the Registrar of Companies (ROC)
Once the MOA and AOA are ready, it’s
time to submit the necessary incorporation documents to the ROC. The application
includes forms like SPICe+ (Simplified Proforma for Incorporating Company
Electronically Plus) and INC-9 declarations. Groom Tax ensures all documents
are accurately completed and submitted to facilitate quick approval.
7.
Apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN)
Both PAN and TAN are required for
tax-related activities in India. PAN is necessary for the company’s financial
transactions, while TAN is used for tax deduction and collection. Groom Tax
assists with obtaining these numbers, ensuring full compliance with Indian tax
regulations.
8.
Open a Bank Account in India
To carry out transactions, you’ll
need a bank account in the name of the subsidiary. Setting up a bank account
involves documentation like the Certificate of Incorporation, PAN, and proof of
address. Groom Tax assists you in streamlining the process, helping you select
the right bank and prepare the required paperwork.
9.
Register for Goods and Services Tax (GST)
A GST registration is mandatory if
the subsidiary’s annual turnover exceeds the specified threshold or if it plans
to conduct taxable business in India. Groom Tax simplifies the GST registration
process, ensuring compliance with India’s indirect tax system, critical for
conducting seamless operations.
10.
Comply with Post-Incorporation Requirements
After incorporation, companies must
fulfill ongoing compliance requirements, such as filing annual returns and
financial statements. Groom Tax provides ongoing support for foreign
subsidiary company registration in India, helping you stay compliant with
local regulations.
Final
Thoughts
Establishing a foreign subsidiary
company in India offers significant potential, but the process can be
complex. Groom Tax’s expertise in foreign company incorporation in India
ensures that every stage, from documentation to compliance, is handled
efficiently.
For more information on setting up a
subsidiary in India, visit Groom Tax.
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