Setting Up a Subsidiary Company in India
Setting up a subsidiary company in India hassle-free with Remunance. With our strategic guidance and local expertise, we enable your business to succeed in India’s vast market.
Why Choose India For Your Subsidiary?
In the wake of India’s liberalization policies, the country has been transformed into a land of opportunities. The country boasts a young, English-speaking middle class that is rapidly growing, representing one of the largest economies in the world. It has an enormous talent pool and a big appetite for good quality products and services. Therefore, it’s no surprise that many overseas businesses are eager to tap into the potential of the Indian market.
Of course, with the opportunity comes challenges, and India comes with its fair share of them. India has a large bureaucracy that is varied by state and region, culture, industry sector, foreign investment regulations, forex restrictions, etc. This adds complexity that can be tedious while setting up a subsidiary company in India.
But with Remunance, these complexities become easier to navigate, allowing you to enter the market faster and establish a strong India presence.
Your Trusted Local Experts For Your Indian Subsidiary
With Remunance by your side, you are spared the need to understand the many and varied Indian subsidiary laws and regulations. You don’t even have to hire skilled professionals to understand these laws for you.
Remunance, not only manages the legalities for you, but we also make sure you are 100% compliant with every law and regulation. From EOR services to building your remote team in India you can have complete faith in Remunance as your seasoned local partner. Further from company incorporation to getting it off the ground, our legal experts have the experience and knowledge to take the burden completely off your shoulders.
Experience Frictionless Indian Subsidiary Setup with Remunance
Company formation in India can be time and cost-intensive without the right guidance. From company registration to revenue extraction and intellectual property protection, there are numerous critical factors to consider and plan for.
At Remunance, we bring together the right people, extensive knowledge, and legal expertise to support you at every stage of your company’s formation in India. We simplify how to register your company in India, navigate compliance requirements, and ensure smooth operations.
Beyond our experience, which stretches back over a decade, we pride ourselves on our commitment to transparency, accuracy, and reliability. When we onboard a client, we take on a partner for the long haul.
Forming your own legal entity brings a number of benefits, the biggest being limited liability from the parent company. This protects shareholders from possible loss. In addition, a local subsidiary can acquire property and has the freedom to decide how your subsidiary should be run, its culture, processes, etc. can be the same as the parent company or completely different.
Why Remunance?
Professional team
Remunance’s team, comprising chartered accountants and lawyers, and legal professionals, facilitate a smooth set-up and operations
Regulatory support
Foreign company registration in India/renewal with concerned authorities, compliance management
Accounting & Taxation support
Our cloud-based accounting and ERP software tracks money anywhere. Our staff examines accounting against your country’s GAAP with CFSs, CPAs, and auditors.
Legal expertise
Registration with different government authorities, as needed
Management services
Our management team will guide your team through various processes— e.g. fund flow, banking, local culture—helping you get off the ground smoothly
HR-related assistance
This includes hiring, onboarding, payroll management, taxation, benefits, etc.
FAQs
What is an Indian subsidiary?
An Indian subsidiary is a company that is incorporated in India and is partially or wholly owned by a parent company based in another country. This allows businesses to establish a strong presence in India. With their India subsidiary, foreign companies can tap into both the vast pool of talent and the large potential market of customers.
While setting up a subsidiary company in India has several strong advantages, the whole process is equally challenging. Setting up a subsidiary brings multiple complexities of regulatory compliance, tax obligations, and legal requirements. If not managed properly, these complexities can cause potential losses and damages.
This is where specialists like Remunance Services help you out. Remunance can be your EOR partner who manages most of the technicalities of setting up a subsidiary for you.
What are the benefits of a subsidiary in India?
An India subsidiary opens a door for foreign companies into the Indian market. The Indian market is an enriched space of opportunities. Here are some of the major benefits of setting up a subsidiary company in India.
- Business expansion with limited liability – The subsidiary has its own assets and liabilities as it is a separate legal entity.
- Market access – A subsidiary company helps you enter the Indian market which holds strong potential. It also brings opens the scope of opportunities in the South Asian region.
- Tax benefits – The Indian government strongly supports foreign companies setting up subsidiaries and hence offers numerous tax benefits to increase FDI.
- Diversification – Companies can diversify their investments by adding investors or forming joint ventures with local businesses.
These are only a few of the advantages you can get by setting up your subsidiary company in India. Interested to know more? Reach out to us (Contact form) and get your questions answered.
How much does it cost to set up a subsidiary in India?
- Setting up a subsidiary company in India has varied costs. There are a number of prerequisites involved you will need the help of a local expert in helping you understand the detailed cost structure of registering a subsidiary in India.However, the rough estimated cost of setting up a subsidiary in India will be anywhere between USD 645 to USD 2,582. However, if you’re looking to form a public limited company, the minimum paid-up capital required would be USD 6,436.If you want to get a detailed understanding and break-up of the costs of registering a subsidiary in India, you can simply schedule a call with us and we can get you started.
How to set up a subsidiary company in India?
Setting up a subsidiary company in India involves a rather elaborate process. Here’s the process in short:
- It starts with you filing for incorporation of your company on the MCA portal.
- You then apply for a series of documentation and certificates like DSC (Digital Signature Certificate), DIN (Director Identification Number), PAN (Permanent Account Number), etc.
- The next steps involved are opening a bank account and complying with post-incorporation regulations.
For detailed information, you can read: How to Setup a Subsidiary in India
It takes anywhere between 6 to 8 months to set up a subsidiary company in India. It involves navigating through complex regulatory requirements, and documentation. It also includes time-consuming processes like obtaining approvals from various government bodies and compliance with legal and financial frameworks.
Companies unfamiliar with the intricacies of these processes face considerable delays and potential roadblocks. This is where expert local partners like Remunance can make all the difference. Get in touch with us today to understand what we can do for you.
What are the criteria for setting up a subsidiary in India?
The criteria for setting up a subsidiary company in India is straightforward and can be easily navigated with the right guidance.
- Shareholders – To form a subsidiary, you need two shareholders. They can either be individuals or businesses.
- Directors – You need two directors, at least one of which should be an Indian resident or a citizen.
- Documents and Certificates – Essential documents include the Digital Signature Certificate (DSC) for directors, Director Identification Number (DIN), and identification/address proof for all shareholders and directors.
- Registration with Authorities – The company must be registered with the Ministry of Corporate Affairs (MCA) and obtain a Permanent Account Number (PAN), Tax Deduction Account Number (TAN), and any other required certifications depending on the business type.
- Compliance – You are also required to comply with the regulations outlined in the Companies Act, 2013. This involves keeping proper accounting records, filing annual financial statements, and holding regular board meetings.
To sum up, setting up a subsidiary company in India is manageable and with the right local expertise, it gets simple too. Choose your local partner today.
Checklist for Pvt. Ltd. Company formation in India
For setting up a subsidiary in India, you will need:
- Minimum 2 directors, out of which one will be an Indian resident (All directors will need a Director Identification Number and Digital Signature)
- Finalize place of business as a registered office
- Finalize 3 name options with justifications
- Decide the main object, ie. the area of Business/ activities of the business for the company
- The holding company will be required to sign the incorporation documents in it own country and there has to be an apostille for the same
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