Documents, Process, and Fees: Subsidiary Registration in India

Expanding into India requires more than market interest and ambition. The most effective way for a foreign company to establish its presence is to have a Subsidiary Company registration in India, which provides legal standing, operational freedom, and compliance with local regulations.

This guide explains the available ownership structures, the registration process, the documents you will need, and the associated fees, helping you enter the Indian market with clarity and control.

Ready? Let’s do this and make the process as smooth as possible.

What is an Indian Subsidiary Company?

An Indian subsidiary is a company in India that is controlled or mostly owned by another company, called the parent or holding company. The parent company can be either Indian or foreign.

A company is considered a subsidiary if the parent company:

• Can appoint or remove most of its directors, or
• Owns or controls more than 50% of its total share capital, either directly or through other subsidiaries.

Example: If a U.S.-based company owns 70% of an Indian private limited company, that Indian company is considered a foreign-owned subsidiary.

There are two types of subsidiaries:

• Wholly-Owned Subsidiary: The parent company owns 100% of the shares. Allowed only in sectors permitting 100% FDI.
• Subsidiary Company: The parent company owns at least 50% of the shares.

For foreign subsidiaries, RBI approval is required before setting up, ensuring compliance with India’s foreign investment rules.

Learn what a WOS is and how it functions is essential for foreign companies looking to establish a clear, compliant, and fully controlled presence in the Indian market. Read the full blog here: Wholly Owned Subsidiary in India: Meaning, Process & Benefits

Why Register an Indian Subsidiary?

Registering an Indian subsidiary comes with several strategic and legal advantages, especially for foreign companies looking to enter the Indian market.

Here’s why it makes sense:

• Separate legal entity: Protects the parent company’s assets.
• Regulatory compliance: Simplifies taxes, hiring, and business operations.
• Operational ease: Enables bank accounts, contracts, and employment.
• Credibility: Builds trust with consumers, investors, and regulators.

Documents Required for Subsidiary Registration in India

Before registering an Indian subsidiary, you must get the necessary papers from the parent company, its directors and shareholders, and the proposed registered office. Having the correct papers helps ensure that everything runs well and adheres to Indian law.

Category	Required Documents	Notes
Foreign Parent Company	– Certificate of Incorporation (notarized & apostilled) – Memorandum of Association (MoA) & Articles of Association (AoA), statutes, or other founding documents, as applicable – Board Resolution authorizing investment & appointing representative – Power of Attorney (POA) for authorized representative the parent company in India	Essential for proving the parent company’s legal existence and authorization to invest in India
Directors & Shareholders	Foreign Nationals: – Valid Passport (notarized & apostilled) – Proof of Address (recent utility bill or bank statement, <2 months old) – Passport-size Photograph (white background) – Digital Signature Certificate (DSC) – Director Identification Number (DIN, can apply during incorporation) Indian Residents (if applicable): – PAN Card, Aadhaar Card – Address Proof (bank statement or utility bill) – Passport-size Photograph – Digital Signature Certificate (DSC)	At least one director must be an Indian resident (lived ≥182 days in India in previous FY)
Registered Office	– Rent Agreement or Lease Deed (if rented) – Proof of Office Address (recent utility bill or bank statement, <2 months old) – No Objection Certificate (NOC) from the property owner	Required to prove the legal address of the company in India

Step-by-Step Registration Process of Subsidiary Registration

There is a certain way to set up a subsidiary in India to make sure the company is real, ready to do business, and trustworthy.

You need to go through all the steps, from choosing the right company structure to getting licenses and permissions, to enter the Indian business market legally and effectively.

Let’s go over the entire process.

Decide Company Structure

The first step is to define the structure of your subsidiary; choose one from the following list as per your business requirement

Structure	Use	Key Points
Private Limited Company	Long-term operations in India	Limited liability, can raise funds, full control
LLP	Small/medium businesses, service firms	Flexible profit-sharing, limited liability, simpler compliance
Liaison Office	Market research, promotion	Cannot earn revenue or sign contracts
Branch Office	Direct business activities	Must follow RBI rules, not fully independent
Project Office	Specific, time-bound projects	Limited to single project, needs government approval

Obtain Digital Signature Certificates (DSC)

The registration process is now conducted online; all directors need to register for Digital Signature Certificates (DSC) on behalf of the company. It is mandatory, as you will be required to sign registration documents electronically.

Apply for Director Identification Numbers (DIN)

All directors of the subsidiary company must obtain DINs from the Ministry of Corporate Affairs. To understand the full process of applying for a DIN, you can refer to our detailed blog on what a DIN is and how to apply for it.

Secure Name Approval

Please pick a unique company name and submit your application through the MCA portal, ensuring to adhere to the naming guidelines.

Draft MoA and AoA

The MoA and AoA define the subsidiary’s objectives, rules, and governance. They must be prepared, following the Companies Act, 2013, to complete the registration process.

Also read: A Complete Guide to MOA and AOA: Meaning, Differences, and Importance

File Incorporation Documents

After your selected name is authorized, you must send the incorporation papers, which include the MoA, AoA, and other necessary paperwork, to the Registrar of Companies (ROC) using the MCA’s online site. Most of the time, the SPICe+ form on the Ministry of Corporate Affairs webpage is used to start a business.

Pay Registration Fees

Pay the ROC the right amount of registration costs depending on the subsidiary company’s authorized capital.

Obtain Certificate of Incorporation (COI)

Once you get the approval for all the documents you have submitted, the ROC will give you a Certificate of Incorporation. This certificate shows that a company has successfully registered its Indian branch.

Apply for PAN and TAN

After getting the CoI, the subsidiary business should apply to the Income Tax Department for a Permanent Account Number and a TAN Card application.

Open a Bank Account

Now, open a bank account in India for the foreign subsidiary company.

In addition to the business registration procedure, be sure that you are in compliance with any other applicable legislation.

Register for GST and Other Required Licenses

After completing the procedures above, you need todo GST registration, especially if your firm does more than one thing. Every business in India has to get a GST number so it can pay taxes.

Commence Operations

Once registration and compliance are complete, begin business activities in India.

Fees and Costs of Registering an Indian Subsidiary Company

The cost of setting up a subsidiary in India may vary depending on how much of help and services required. The average cost of forming a firm, which includes government fees, legal documentation, and basic aid with compliance, is around Rs. 28,000. But if you pick a more full bundle with additional services, this fee may increase significantly.

LegalWiz provides packages that cover all the main demands and make sure everything is transparent and open:

LegalWiz: All-in-One Transparent Packages

Setting Up Subsidiaries in India: Your Path to Success

Registration of a subsidiary company in India is more than simply a formality. It creates a distinct legal entity that protects the parent firm’s assets and makes sure it follows Indian corporate and tax regulations, and keeps operations running smoothly. This is the first step toward success in your area with aspirations that reach throughout the world. An Indian subsidiary not only helps with regulations, but it also makes investors, partners, and consumers trust you more in a new market. Companies may securely join India and focus on expanding instead of dealing with regulatory issues if they follow a defined procedure for opening a company and taking care of paperwork, permissions, and laws from the outset.