HOW TO OPEN A SUBSIDIARY COMPANY IN INDIA

 SUBSIDIARY COMPANY REGISTRATION IN INDIA



Recently, one of my friends, who are based in USA, met me in India. He was a NRI and has been working as software consultant in USA for last 25 years. Now, He wanted to explore some opportunities of business setup in India.

He wanted to start an IT consultancy business in India and asked me the entire process of the same.

I informed him that he can start business in India in any of the following form of entities:

a)      LLP registration

b)      Normal Private Limited company registration and

c)       Subsidiary company registration

He was very curious to know the difference between all 3 of the above and also what is best form of entity registration for him.

I informed him in brief about various features of all the 3 entities and also the estimated cost of registration of each of the three entities. Also, informed him about types of documents required etc.

He was not sure about the best form of business setup in India. Accordingly, I asked him about his future plans in India and what are his long term vision. He informed me that He was already running a small company in USA and wanted to use the brand name of that USA company while setting up business in India.

After listening to his long term requirement, I advised him to go for subsidiary company registration. He asked me the reason why I suggested Him subsidiary company registration over other forms of entities.

I informed him that subsidiary companies are formed when any company acquires more than 50% of shares in another company, and then second company becomes subsidiary of first company. In our case, USA based company will acquire more than 50% shares of Indian proposed company, accordingly, an Indian company will become subsidiary of its parent company. Also, Indian company can retain or use the brand name of parent company which is based in USA.

He was very excited to know that He can use the brand name of its parent company. He also asked me about the procedure of subsidiary company registration as well as types of documents required and once company is incorporated, what type of compliances to be done in India.

I asked him to relax a bit as too many questions were being asked at same time. The minimum requirement for company registration in India is that there should be 2 directors and 2 shareholders and one of the directors must be an Indian Resident. Also, local office address is required for showing registered office. Documents required for same are normal KYC documents along with address proof of registered office like latest electricity bill in the name of landlord and No Objection Certificate from landlord.

Since He was residing in USA, I asked for copy of his passport, latest utility bills, colored photograph and residential address proof in USA. Also, I asked him to get all the documents notarized and apostiled in USA as this is mandatory requirement in case any of the Directors or shareholders is foreign citizen.

The normal time involved in business set up in India is 12-15 working days from receipt of all the documents.

He asked me some time for arranging the documents and thanked me for explaining the entire process of subsidiary company registration in brief.

We both had our coffee and signed off for getting in touch again once He arranges all the documents.

For any feedback or queries, please contact at info@ezybizindia.in; www.ezybizindia.in ; +919899217778

Location: India

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