Documents, Process, and Fees: Subsidiary Registration in India

Entering India is not flying in and waving your passport about. The cuisine and culture are great, but what about business here? It can be as hard to deal with red tape, rules, and Indian intricacies as it is to hold a hot samosa and ride a bike at the same time.

That’s why registering an Indian subsidiary for foreign companies is your VIP ticket to India. It’s your legal backstage pass that lets you do business, be in compliance with local law, and escape compliance madness.

From choosing the optimum ownership structure to understanding registration and expenses, each step leads to success. Throughout this step-by-step guide, we’ll outline what documents are required, step by step, and at what expense, so your expansion into India is trouble-free, smart, and no paperwork nightmare.

Ready? Let’s do this and make this process as smooth as it can be.

1. What Is a Subsidiary Company? 

A subsidiary company is basically an independent local business that’s owned by a foreign parent company based elsewhere. Think of it as your brand’s local ambassador—fully capable of handling operations, signing contracts, hiring teams, and dealing with customers—all while being backed by the parent’s resources and expertise.

Why registration matters:

• It provides the company with a legal status in India so that it can sign contracts, receive loans, and open bank accounts.
• Registration provides compliance with Indian law, easy operation, and audit preparedness.
• Due to its legitimacy of operation, regulators, customers, and suppliers regard your business seriously.

How it’s different from other structures:

• A branch office isn’t independent—it operates directly under the parent company.
• A joint venture is shared ownership with another person and usually shared control and bargaining.
• A subsidiary provides you with total ownership and local autonomy, combining the advantages of both worlds.

2. Key Documents Required for Indian Subsidiary Registration

You ought to have sufficient documents in your hands before filing for the registration of your subsidiary. Poor paperwork can cause delays, so here’s a list of what you’ll need:

• Parent company certificate of incorporation: A document that verifies that the parent company is a genuine, registered company in the country where it is located and is eligible to invest overseas.
• Board resolution to approve the subsidiary: Official approval of the parent company board of directors for forming the subsidiary and the directors’ appointment.
• Directors’ identification and residence proof: The following documents of identification must be presented to confirm the residential address and director identity: passports, driving licenses, or electricity bills.
• PAN, TAN, GST, and other registrations: PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), and GST enrollment need to be done for facilitation of tax compliance and facilitation of business activities.

Quick tips: 1. Name, address, and other details should be the same on all documents to avoid rejection. 2. Notarization or stamping is not always required on some documents, depending on the host country of the parent company. 3. Double-check everything thoroughly before submission—precise documents can expedite approvals and prevent delays.

3. Step-by-Step Registration Process for Indian Subsidiary

Getting your subsidiary registered need not be a maze-running exercise if you follow the path. This is how it generally happens, with the key approvals along the way:

Name approval on the MCA portal

Firstly, you must select a name and obtain approval from the Ministry of Corporate Affairs (MCA). Avoid using generic or restricted terms, or the system will return your submission faster than you can say “reapply.”

Drafting MOA & AOA

The Memorandum of Association (MOA) and Articles of Association (AOA) serve as the subsidiary’s master plan, outlining what actions are taken, how they are executed, and the decisions that guide them. These must comply with Indian legislation and your parent company’s mission.

Filing forms with ROC

After preparation, you’ll submit incorporation forms to the Registrar of Companies (ROC). These consist of director information, registered office address, and other necessary statements. It’s time-consuming, but hassle-free filing expedites approval.

Obtaining PAN, TAN, and GST registration

After incorporation, you’ll need tax registrations such as:

• PAN for income tax compliance
• TAN for TDS obligations
• GST for sales and services compliance

Depending upon the industry and the firm, you may also require the approval of the Reserve Bank of India (RBI), particularly where foreign investment is involved.

A note on bureaucracy:

Yes, there’s paperwork. Yes, there is a consent agreement. But with adequate planning, coordination of documents, and expert advice, it’s not such a nightmare and more of a tick list. It’s putting together flat-pack furniture—you just have to have the right tools and instructions to prevent a weekend of confusion.

4. Fees Involved for the Indian Subsidiary

Setting up your subsidiary isn’t free—unless you’ve got a magic wand. Here’s where the money goes (and how to keep it from vanishing into the paperwork vortex):

Category	Component	Estimated Cost (INR)	Notes
Government Fees	Name Reservation (RUN form)	₹1,000	Fee for reserving the company name via the MCA portal
	SPICe+ Form Filing	₹0–₹7,000+	Free for companies with authorized capital up to ₹15 lakh; increases for higher capital
	Stamp Duty	₹1,000–₹5,000+	Varies by state and authorized capital
Professional Fees (Legal/Consultancy)	Chartered Accountant/Company Secretary Fees	₹10,000–₹25,000+	For drafting documents, filing forms, and handling approvals
	Notarization & Apostille (if foreign parent company)	₹5,000–₹15,000+	For certifying foreign documents as per Indian legal requirements
Additional Registrations (If Applicable)	GST Registration	Usually included in AGILE-PRO (no extra charge)	Required if the business is taxable under GST
	TAN & PAN Application	Included in SPICe+ form	Automatically applied during incorporation
	ESIC/EPFO/PT Registration	Included in AGILE-PRO form	Mandatory if hiring employees
Post-Incorporation Costs	Form FC-GPR Filing (RBI)	₹5,000–₹10,000 (with professional help)	Mandatory for reporting foreign investment
	Auditor Appointment (Form ADT-1)	₹2,000–₹5,000	Appointment of a statutory auditor within 30 days
	First-Year Annual Compliance	₹15,000–₹30,000+	Includes MGT-7, AOC-4 filings, board meetings, etc.

Pro tip: Costs depend on how complex your setup is, how much capital you plan to invest, and how much expert help you need. Plan properly and keep thorough documentation to avoid surprises—and maybe even enjoy the process. Proper paperwork is the best shield against unnecessary stress.

5. Common Issues in Indian Subsidiary Registration and Solutions

Even with the best intentions, registration of a subsidiary can encounter a couple of speed bumps along the way. Fear not—knowledge of what to watch out for can steer your process along without trouble. Here are the typical hotspots and how to navigate around them:

Challenge	What Happens	How to Avoid It
Inconsistent documentation	One typo or mismatch in the address, and you’ll be asked to “resubmit” again and again.	Double-check names, addresses, and dates across all documents before filing. Consistency is king!
Delays due to regulatory checks	Forms go in… and then you wait. Approvals can get stuck in review layers longer than expected.	File during office hours, respond quickly to queries, and track deadlines with expert help.
Tax registration confusion	PAN, TAN, GST—seems simple, but mix them up and you’ll chase approvals like it’s paperwork whack-a-mole.	Understand which registrations apply to your business and seek professional advice to avoid undue delay.

6. Why It’s Worth Registering a Subsidiary

Why on earth would you bother going to so much effort to set up a subsidiary? Well, just as it’s helpful to have someone from the inside when you relocate to a new town, you want someone who knows the shortcuts, understands the language, and can bring you around the rules without getting lost.

Here’s why it is worth doing:

• Legal protection: Your parent company’s assets are secure, but the subsidiary absorbs local risk. Similar to wearing a helmet while cycling in traffic.
• Local presence: Customers, suppliers, and partners feel at ease with a business based locally. It’s similar to coming smiling instead of sending an email halfway across the globe.
• Financial independence: The subsidiary assumes its own accounts, taxes, and profits—no more guessing or convoluted finances.
• Brand credibility: A registered subsidiary signals commitment. It says, “We’re not just visiting—we’re here to stay.”

So yes, having a subsidiary is not just a form—it’s a building block to growth, trust, and success in the long term. It’s how international companies get started and thrive overseas.

Setting Up Subsidiaries in India: Your Path to Success

Registration of a subsidiary company in India is more than simply a formality; it is the bedrock upon which your company will stand. Building confidence with clients, controlling risks, and staying compliant are all made easier with a well-structured subsidiary. This is the first step toward local success with global goals.

Growth shouldn’t be left to chance. Set a course, prepare papers, and get help from pros. That is where LegalWiz comes in, providing you with guidance, answers, and assistance to get started with confidence and stay compliant every step of the way. Visualize a subsidiary like your hometown buddy chaperone—someone who knows a little bit about the country, the law, and the mores, so your company is headquartered and you are free to go out and find bigger things. With the proper arrangement, your global aspirations are not merely feasible—they’re going to flourish.