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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