What is Indian Subsidiary registration?

A subsidiary is a company with voting stock (that is more than 50%) controlled by another company, usually referred to as the parent company or the holding company. In cases where a parent company owns a foreign subsidiary, the subsidiary must follow the laws of the country where it is incorporated and operates. Hence, if a foreign subsidiary is incorporated in India, then it has to follow the applicable laws in India.

Minimum Requirements for Indian Subsidiary Registration ?

• Minimum 2 Shareholders
• Minimum Capital of Rs. 1lac
• DIN for all Directors
• Parent company must hold 50% of total equity capital.

Annual Compliances of Indian Subsidiary Company

• All Indian Subsidiary companies are needed to comply with Companies Act, the Income Tax Act, FEMA guidelines, transfer pricing guidelines. Time to time, they are liable to file an income tax return with the income tax department, annual return with the registrar of companies and other mandatory filings with the reserve bank of India or securities and exchange board of India etc. However, the requirement is based on the type of industry, turnover, and the number of employees.