Foreign Subsidiary
A foreign subsidiary company is a type of company that is incorporated in a country other than the country where its parent company is located. The parent company, which is often referred to as the holding company, owns the majority of the shares in the foreign subsidiary company and therefore has control over its operations
Eligibility
The foreign company must be incorporated and registered in its home country.
must have a minimum capital of USD 20,000 or its equivalent in any other currency
must be in compliance with the Foreign Direct Investment (FDI) policy of the Indian government.
must comply with all the regulations and laws that are applicable to companies in India.
Document Required
Certificate of incorporation of the foreign company
Board resolution
Power of attorney
Passport and address proof of the proposed directors
Proof of registered office address
PAN (Permanent Account Number) card and bank account
Benefits
Access to a large market India has a population of over 1.3 billion people
labor costs are relatively low compared to other countries
Favorable investment climate
Improved brand image
Tax benefits
Access to large pool of talented and skilled professionals
Challenges for Registering for Foreign Subsidiary
Registering a Foreign subsidiary company in India involves compliance with specific regulations. Here are ten common challenges faced by individuals during the registration process:
1.Understanding Regulatory Environment:
Grasping the complex regulatory environment governing foreign subsidiaries in India, including compliance with the Companies Act and other relevant regulations.
2.Legal Structure Selection:
Choosing the appropriate legal structure for the subsidiary, such as private limited company, branch office, or liaison office, based on business objectives and regulatory requirements.
3.Documentation Complexity:
Preparing and submitting comprehensive documentation, complying with various legal and regulatory requirements, and ensuring accuracy in the application process.
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