How to register a subsidiary company in India? 10-step guide

How to register a subsidiary company in India? 10-step guide

Determine the Type of Company

Determine the Type of Company

Decide on the type of subsidiary company you want to establish. The most common options for foreign companies are a private limited company in which the parent enterprise owns more than 50 per cent of the subsidiary

Decide on the type of subsidiary company you want to establish. The most common options for foreign companies are a private limited company in which the parent enterprise owns more than 50 per cent of the subsidiary

Obtain Digital Signature Certificate (DSC)

As the registration process is done online, you need to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. DSC is used to electronically sign the documents during the registration process

As the registration process is done online, you need to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. DSC is used to electronically sign the documents during the registration process

Apply for Director Identification Number (DIN)

Apply for Director Identification Number (DIN)

Directors of the subsidiary company must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). DIN can be obtained by submitting the DIN application online

Directors of the subsidiary company must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). DIN can be obtained by submitting the DIN application online

Name Approval

Name Approval

Choose a unique name for your subsidiary company and apply for its approval through the MCA’s online portal. The name should adhere to the naming guidelines provided by the MCA

Choose a unique name for your subsidiary company and apply for its approval through the MCA’s online portal. The name should adhere to the naming guidelines provided by the MCA

Drafting Memorandum of Association (MoA) and Articles of Association (AoA)

Drafting Memorandum of Association (MoA) and Articles of Association (AoA)

MoA and AoA are legal documents that define the objectives, rules, and regulations of the company. Prepare these documents in accordance with the Companies Act, 2013

MoA and AoA are legal documents that define the objectives, rules, and regulations of the company. Prepare these documents in accordance with the Companies Act, 2013

Filing Incorporation Documents

Filing Incorporation Documents

Once the name is approved, you need to file the incorporation documents, including the MoA, AoA, and other required forms, with the Registrar of Companies (ROC) through the MCA’s online portal.The incorporation is done through the SPICe+ form on the Ministry of corporate affairs portal

Once the name is approved, you need to file the incorporation documents, including the MoA, AoA, and other required forms, with the Registrar of Companies (ROC) through the MCA’s online portal.The incorporation is done through the SPICe+ form on the Ministry of corporate affairs portal

Payment of Registration Fees

Payment of Registration Fees

Pay the required registration fees to the ROC based on the authorized capital of the subsidiary company

Pay the required registration fees to the ROC based on the authorized capital of the subsidiary company

Obtain Certificate of Incorporation (CoI)

Obtain Certificate of Incorporation (CoI)

If all the documents and information provided are in order, the ROC will issue a Certificate of Incorporation. This certifies the registration of the subsidiary company

If all the documents and information provided are in order, the ROC will issue a Certificate of Incorporation. This certifies the registration of the subsidiary company

Apply for Permanent Account Number (PAN) and Tax Registration

Apply for Permanent Account Number (PAN) and Tax Registration

After obtaining the CoI, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the subsidiary company from the Income Tax Department

After obtaining the CoI, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the subsidiary company from the Income Tax Department

Open Bank Account

Open Bank Account

Lastly, open a bank account in the subsidiary’s name in India

Lastly, open a bank account in the subsidiary’s name in India

Compliance with Other Regulations

Compliance with Other Regulations

Apart from the company registration process, ensure compliance with other applicable regulations such as Goods and Services Tax (GST) registration, labor laws, and any industry-specific regulations

Apart from the company registration process, ensure compliance with other applicable regulations such as Goods and Services Tax (GST) registration, labor laws, and any industry-specific regulations

Image: Pexels

Image: Pexels