Forming an Indian Subsidiary in Delhi and India

Forming an Indian Subsidiary in Delhi and India – A Complete Guide by Brooks Consulting Pvt. Ltd.

Expanding into India is a golden opportunity for global businesses seeking a strong and growing market. With a robust economy, skilled workforce, and investor-friendly policies, India has become one of the most attractive destinations for foreign companies. At Brooks Consulting Pvt. Ltd., we specialize in forming an Indian subsidiary in Delhi and across India, ensuring a smooth and compliant entry into the Indian business landscape.

Why Form an Indian Subsidiary?

An Indian subsidiary allows foreign companies to operate just like a locally incorporated business. It enjoys the same rights as an Indian company, offering credibility, tax benefits, and access to a wide customer base.

• 100% foreign ownership in most sectors (as per FDI policy)
• Access to India’s vast consumer market
• Legal recognition as an Indian entity
• Taxation at competitive corporate rates

Types of Indian Subsidiaries

When forming a subsidiary in India, there are two main ownership structures:

Wholly Owned Subsidiary (WOS):

• 100% foreign ownership is allowed in FDI-permitted sectors.
• Offers full control to the parent company.

Joint Venture Subsidiary:

• Ownership is shared between the foreign company and Indian partners.
• Useful in sectors with restrictions on 100% FDI.
• Brings local expertise, market contacts, and resources.

FDI Routes for Subsidiary Formation

Foreign investment in India can be done through two routes:

• Automatic Route: No prior approval required for most sectors.
• Government Route: Requires approval from authorities like the Department for Promotion of Industry and Internal Trade (DPIIT) or relevant ministries.

Brooks Consulting provides end-to-end assistance in identifying the right route and securing necessary approvals.

Alternative Business Establishments in India

If a full-fledged subsidiary isn’t suitable, foreign companies can also explore:

• Liaison Office: For communication and research purposes.
• Branch Office: For carrying out business activities like consultancy, exports, or imports.
• Project Office: For executing specific projects.

Our experts guide you in choosing the most appropriate structure based on your goals.

Step-by-Step Process of Forming an Indian Subsidiary

1. Choose a Unique Company Name: Must comply with MCA guidelines and be approved on the MCA portal.
2. Appoint Shareholders and Directors:
   • Minimum 2 shareholders (individuals or companies).
   • Minimum 2 directors, with at least one Indian resident director.
3. Obtain DIN and DSC: Directors need a Director Identification Number (DIN) and Digital Signature Certificate (DSC) for official filings.
4. Draft Incorporation Documents: Memorandum of Association (MOA) and Articles of Association (AOA) must be prepared and filed online.
5. Secure Certificate of Incorporation: Issued by MCA after document verification.
6. Bank Account Opening: A corporate bank account is opened in India for financial operations.
7. Register for Taxation:
   • PAN and TAN registration
   • GST registration (if applicable)
   • Compliance with corporate income tax (25% on profits)

Documentation Required

• Passport/ID proofs of foreign directors and shareholders (notarized and apostilled)
• Board resolution from the parent company
• Certificate of incorporation of the parent company
• Proof of registered office in India

Timelines and Costs

• Typical timeline: 12–15 business days after submission of documents.
• Costs: Include government fees, registration charges, and professional fees.

Brooks Consulting ensures a transparent, cost-effective process with no hidden charges.

Why Choose Brooks Consulting Pvt. Ltd.?

• Quick and hassle-free incorporation
• End-to-end compliance support
• Assistance in FDI approvals and RBI permissions
• Ongoing tax, payroll, and HR support

We don’t just help you form a subsidiary; we help you grow and sustain your business in India.

Conclusion

Forming an Indian subsidiary in Delhi or anywhere in India is a strategic way to tap into one of the world’s fastest-growing economies. With proper guidance, the process is smooth, compliant, and highly rewarding. At Brooks Consulting Pvt. Ltd., we stand by you at every step—from registration to ongoing compliance—making your entry into the Indian market simple and stress-free.

Frequently Asked Questions

1. Can a foreign company own 100% of an Indian subsidiary?

   Yes, 100% ownership is allowed in many sectors under the automatic FDI route.

2. How long does it take to form an Indian subsidiary?

   On average, 12–15 business days after submission of complete documents.

3. Is there a minimum capital requirement?

   No minimum capital is required for forming an Indian subsidiary.

4. Can Brooks Consulting help with FDI approvals?

   Yes, we assist in both automatic and government approval routes, including FIPB and RBI permissions.

5. What ongoing compliance does a subsidiary need?

   Annual filings, tax returns, GST (if applicable), payroll, and statutory audits.