Overview
An Indian subsidiary lets a foreign company establish a wholly or majority-owned presence in India, usually as a private limited company. It is a separate Indian legal entity that can hire, contract, invoice and operate locally, while being controlled by the foreign parent.
India permits 100% foreign direct investment under the automatic route in many sectors, making the subsidiary route a popular way for global businesses to enter the Indian market. The structure must comply with both the Companies Act and FEMA, including reporting of foreign investment to the RBI.
CorpRaasta handles the complete setup — incorporation of the Indian company, apostille and documentation for the foreign parent, ensuring at least one resident director, and the post-incorporation FEMA filings such as FC-GPR for share allotment — so your subsidiary is fully compliant from day one.
What is Indian Subsidiary?
An Indian subsidiary is an Indian company, typically private limited, in which a foreign company holds majority or full ownership, governed by both the Companies Act, 2013 and FEMA foreign-investment rules.
Why it matters
A compliant subsidiary gives a foreign business a credible, fully operational presence in India with limited liability, while correct FDI and FEMA reporting from the start avoids penalties and keeps repatriation of profits smooth.
Key features
Who needs it
Documents required
How it works
Structuring & documentation
We advise on the structure and prepare apostilled parent-company documents and director KYC.
Name & DSC
We reserve the company name and obtain Digital Signatures and DINs for the directors.
Incorporation
The SPICe+ form is filed and the Certificate of Incorporation is issued with PAN and TAN.
FEMA reporting
We file the post-incorporation FC-GPR and related FEMA filings with the RBI for the foreign investment.