Starting a Subsidiary Company in India
A subsidiary lets your foreign company operate in India as a separate legal entity, majority-owned by the parent. We handle the incorporation, the FEMA and RBI filings, and the compliance that follows.
|800+ businesses served since 2020
An Indian entity your foreign company controls
A subsidiary company is registered in India under the Companies Act, 2013, with a foreign company holding a majority of its equity. It operates as its own legal entity — able to contract, hold assets and be sued in its own name — while staying under the parent’s control.
For most sectors, incorporation runs through the automatic FDI route, so no prior government approval is needed before the parent invests. Certain sectors carry extra conditions, and these shift from time to time, so we check the current position for your sector before filing anything.
- Limited liability for the parent, separate from the subsidiary’s obligations
- Direct entry into the Indian market under its own legal identity
- A structure investors, banks and customers already recognise
- Ability to hire locally and build an India-based team
- Continuity independent of who sits on the board at any point
Foreign companies building an India presence
A dedicated Indian entity
Rather than routing sales or hiring through the parent directly, a subsidiary gives you a proper local legal identity.
Built for sustained operations
Companies planning ongoing India operations, not just a short-term market test, find a subsidiary the more durable structure.
The automatic route applies
Where your sector sits on the automatic FDI route, a subsidiary is usually the most direct way to enter.
Route check to ongoing FEMA compliance
Route and sector check
Confirming the FDI route that applies and any sector-specific conditions before we file anything.
Resident director arrangement
Every Indian company needs at least one India-resident director — we advise on and help arrange this.
Incorporation filing
DSC, DIN, name reservation, MOA/AOA and the incorporation form filed with the ROC.
Parent-company documentation
Notarised and apostilled certificate of incorporation, board resolution and charter documents, prepared correctly the first time.
FEMA and RBI reporting
Filings tied to share allotment and the foreign investment received, submitted on schedule.
Ongoing ROC and FEMA compliance
Annual returns, statutory audit and continuing foreign-investment reporting, tracked as a standing engagement.
Four steps to an operating subsidiary
We confirm the route
Sector and FDI route checked before we file anything.
We prepare documentation
Parent-company and director papers notarised, apostilled and translated where needed.
We file for incorporation
DSC, DIN, name reservation and the incorporation form submitted to the ROC.
FEMA reporting and compliance run
Foreign-investment filings made once shares are allotted, then annual compliance kept current.
Questions companies ask first.
What’s the difference between a subsidiary and a branch or liaison office?
A subsidiary is a fully independent Indian company that can trade and operate like any other. A branch or liaison office is an extension of the foreign parent with restricted activities — one cannot simply be converted into the other; a subsidiary has to be incorporated separately.
Is a resident director mandatory?
Yes. At least one director on the board must be a resident of India, alongside any directors from the parent company’s team.
Can the subsidiary send profits back to the parent company?
Yes, profits can be repatriated to the parent after the subsidiary settles its applicable tax obligations. We advise on the process as part of ongoing compliance.
Tell us what you need.
A short call to understand where you stand and how we would run this for you. No obligation.
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