Foreign Subsidiary in INDIA

There are 3 x ways of Opening a Business entity in India by a Foreign Corporation.

  1. Branch Office in India.
  2. Liaison Office in India.
  3. 100% owned Subsidiary in India.

# A Private Limited company can incorporated as the wholly owned subsidiary in India where the major shareholding (Upto 100%) is held by a foreign holding company or by foreign individuals.

# LLP registration in India can be done by foreign companies and by Foreign Individuals. It requires a minimum x 2 partners and among them at least one of them should be an Indian Resident. LLP can be registered only in sectors where 100% FDI is allowed in the automatic route.

# The 3rd option is to open a full-fledged Branch / Liaison Office requires government approval prior to setting up business in India. The Branch office in India requires that the parent company willing to set up a branch must have a net worth equal to or more than USD 100,000. Another drawback is that branch office should engage in the same business activity in which the parent company is engaged. A Liaison company cannot undertake business activity; it can only act as a communication office.

AVALON offers a 3 x packages for opening a Foreign Office in India:

BRONZE OFFER VALUE:  Rs 60,000/-

It includes the following:                             

– 2 Digital Signatures (DSC).

 -2 Director Identification Number (DIN).

 -Name Reservation

 -Drafting of MOA & AOA

 -Certificate of Incorporation

 -PAN & TAN for the Company

 -RBI Compliance.

SILVER OFFER VALUE: Rs 75,000/-

-Goods and Service Tax (GST) registration.

 -Share Certificates

 -Statutory Register

 -First Board Meeting Minutes

+ All services in the BRONZE Offer.

GOLD OFFER VALUE: Rs 100,000/-

-Shops & Commercial Establishment

 -Professional Tax Enrolment

 -Employee Professional Tax

 -FDI reporting to RBI.

+ All services in the SILVER OFFER

COMPANY REGISTRATION BY FOREIGNERS:

Attestation or Legalization of Documents

All documents which are signed by the proposed director or shareholder being a foreign national including their passport and address proof need to be legalized either through Indian Embassy or to be apostilled as per Hague convention.

However, in case the foreign person comes to India with original documents then attestation can be done in India provided he came on a Business Visa.

DSC of Director:

It is the equivalent of the Paper signature in digital format.

The Issuance of the DSC’s for the Directors is a mandatory norm for the setting up of a foreign entity in India of any type.

Photograph/Passport & Address Proof is to be submitted along with Form for the issuance of the DSC.

Application for Company registration:

The application for the registration for the LLP or a 100% owned Subsidiary is called the SPICE form. The supports to be added to the SPICE form are – MOA/AOA/Regd Office proof & the NOC from the Landlord.

Bank Opening & FDI Reporting:

After the receipt of the Company Incorporation-the bank A/cnt is to be opened; wherein the FDI has to reach within 180 days of incorporation of the company, with advance information to the banker.

After this FDI investment the company is required to report the FDI inflow to the RBI within 30 days of receipt of remittance.