How to Legally Set Up a Foreign Subsidiary in India

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Setting Up Of A Foreign Subsidiary In India

Incorporating a foreign subsidiary in India can be a complex process, requiring careful attention to detail and compliance with various regulations. This article provides a comprehensive guide to help foreign companies navigate the process of setting up a subsidiary in India.

 

Step 1: Documentation

 

The first step in incorporating a foreign subsidiary in India is to gather the necessary documents. These include:

 

Memorandum of Association and Articles of Association

Proof of registered office address

Director Identification Number (DIN) for all directors

Digital Signature Certificates

Certificate of Incorporation from the foreign parent company

 

Step 2: Draft Board Resolution and Power of Attorney

 

The foreign company must draft a Board Resolution seeking approval to establish a subsidiary in India. Additionally, a Power of Attorney must be drafted authorizing a person in India to file the application for incorporation.

 

Step 3: Legalize Board Resolution for Name Approval

 

The Board Resolution must be legalized by obtaining Consulate attestation from the Indian Embassy or Apostille from the Hague Convention.

 

Step 4: Select Name and Apply for Approval

 

The subsidiary can use the same name as the parent company or choose a different name. The name must be approved by the Registrar of Companies.

 

Step 5: Legalize Drafts and Documents for Incorporation

 

 

All necessary documents, including the Memorandum of Association and Articles of Association, must be legalized.

 

Step 6: File Application for Incorporation

 

The online SPICe+ application must be filed with the Registrar of Companies.

 

Step 7: Issuance of Certificate of Incorporation and CIN

 

Once the application is verified, the Registrar will issue the Certificate of Incorporation and Corporate Identification Number (CIN).

 

Documents Required

 

Basic documents and legal drafts of the parent foreign company

Documents of directors or shareholders of the Indian subsidiary

Registered office address of the Indian Subsidiary

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