Formation of Indian Subsidiary of a Foreign Company

Formation of Indian Subsidiary

Company registration procedure in India has been simplified very much. To encourage foreign investments in India, MCA has improved the guidelines for formation of Indian subsidiary. If a foreign company wants to set up a subsidiary in India; they have to follow up the guidelines specified by the MCA. Foreign companies have to choose right business structure as per the Indian tax norms and rules and regulations. It is mandatory for foreign companies to take prior permission from Indian government in order to form an Indian subsidiary company in India.

 

Process for Formation of Indian Subsidiary

1. Give a authorization for formation of Indian subsidiary company
2. Choose the right kind of company to incorporate
3. Create a company formation draft as per the law
4. File the incorporation application with the registrar of companies

Foreign companies have to comply with the rules of MCA and FDI.

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