How to Register a Subsidiary in India as a Foreign Company? Step-by-Step Guide

India has rapidly emerged as a global business hub, attracting companies across industries—technology, manufacturing, fintech, retail, pharmaceuticals, and more. With strong government initiatives like Make in India and Digital India, foreign investors are increasingly exploring the option to Register a subsidiary in India and operate within the fast-growing Indian market.

If you’re planning expansion, understanding the step-by-step process of Subsidiary company registration in India and regulatory requirements is crucial.
A complete resource for foreign founders is also available here:

👉 Subsidiary company registration in India

What Is a Subsidiary Company in India?

A subsidiary is a separate legal Indian company where a foreign parent organization owns more than 50% equity, governed under the Companies Act, 2013.

It offers benefits like:

  • 100% foreign ownership in many sectors
  • Independent legal identity
  • Limited liability
  • Local hiring and banking access

India’s official business and regulatory updates can be cross-checked through india.gov.in and dpiit.gov.in.

Why India Is a Top Destination for Global Expansion

India’s massive customer base, startup ecosystem, and support programs such as:

have encouraged foreign companies to expand operations seamlessly.

Many resources also showcase why India is strategic for scaling:

Step-by-Step Process to Register a Subsidiary in India

Step 1: Digital Signature Certificate (DSC)

Foreign directors must apply for a DSC, which is mandatory for filing online documents with the MCA.

Step 2: Apply for DIN (Director Identification Number)

DIN is required for all proposed directors.

Step 3: Reserve a Company Name (RUN Process)

Name availability and approval are handled through the Ministry of Corporate Affairs (MCA).

Official registration guidance can be referenced through:

🔹 india.gov.in
🔹 dpiit.gov.in

Step 4: Filing Incorporation Documents

Documents required include:

Document Type

Examples

Corporate Documents

Parent company’s charter documents

Directors’ Proof

Passport, Address proof

Compliance Docs

MOA, AOA, Declaration forms


Once approved, the
Certificate of Incorporation (COI) is issued.

Step 5: PAN, TAN & GST Registration

After incorporation, the subsidiary must register for:

Compliance

Governing Website

PAN & TAN

incometax.gov.in / incometaxindia.gov.in

GST

gst.gov.in and gstcouncil.gov.in


GST is mandatory for companies engaged in taxable supply of goods/services.

Step 6: Udyam or Startup India Registration (Optional but Beneficial)

For subsidiaries planning manufacturing, small-scale operations, or technology development, additional registration options include:

Step 7: Sector Authorizations (If Applicable)

Some sectors require licenses:

Sector

Authority Link

Food / FMCG

fssai.gov.in

Manufacturing / Industrial Setup

dcmsme.gov.in

Foreign Investment Policies

dpiit.gov.in


Step 8: Open an Indian Bank Account

A corporate bank account is necessary for RBI-compliant capital infusion from the parent company under FEMA guidelines.

Foreign Compliance & FEMA Reporting

Post incorporation and investment:

  • FC-GPR filing
  • FEMA reporting
  • RBI documentation

These compliance processes ensure the structure legally qualifies as a foreign-owned entity.

Helpful business compliance resources:

👉 Compliance Support for Subsidiaries
👉 Important ROC Filings

Cost & Timeline

Stage

Timeline

Name Approval

2–5 Days

Incorporation

10–18 Business Days

Post-Compliance

Ongoing


Why Many Global Businesses Prefer India Subsidiaries

India offers:

  • Skilled workforce
  • Tech innovation hubs
  • Competitive operational cost
  • Access to Asia-Pacific markets

Insights from the ecosystem include:

Foreign Company vs Subsidiary—Which Is Better?

If you are comparing global structures, this reference may also help:

👉 Foreign company setup in India

Final Thoughts

Registering a subsidiary in India unlocks a world of opportunity for international brands—from accessing massive emerging markets to hiring skilled talent and benefiting from government-backed growth initiatives.

To get started with guidance from experts:
👉 Register a subsidiary in India