India is one of the most rapidly growing markets in the world with promising emerging opportunities for international businesses. For starting a foreign subsidiary company in India, there is, however, a procedure that needs to be followed. A regulatory framework according to The Companies Act, 2013 and certain guidelines by the Reserve Bank of India (RBI) need to be abided by when a foreign company or a foreign national (other than Pakistan and Bangladesh) wants to start a business in India.

To make an investment in India, foreign companies or foreign nationals have the option of availing two categories – the automatic route and the approval route. In the former case, no prior regulatory approval is required while in the latter case, approval from the RBI is mandatory.

With lower compliance requirement and ease of operations, a foreign company can register in India as different types of entities such as:

The major benefits of starting a business as a wholly owned foreign subsidiary in India is that 100% FDI or Foreign Direct Investment is allowed in several industries or business activities without prior approval; the life or existence of a business will not be affected even after the death of the shareholder, and there is always the scope of expansion as the private limited offer more transparency in a company.

The Procedure of Foreign Subsidiary Company Registration in India:

How Eaccountspro can help you?

Our expert team can help you through the entire procedure of application for foreign subsidiary company registration. Our professionals have vast experience and knowledge to address all your doubts, queries, and concerns regarding registration, regulations, mandatory filings with the RBI and/or SEBI, various compliances such as Income Tax, FEMA guidelines, transfer pricing guidelines, TDS, GST, and other regulations, etc. We can help ensure that all your documents and drafts are accurate and that you have all the papers done correctly before submitting the application. We will make sure that all the necessary forms are filed correctly and can also assist you with post incorporation compliances.