Procedure for Indian Subsidiary Company Registration
Registering a subsidiary company in India involves a detailed process, so below are the detailed procedures to be followed for registering an Indian subsidiary company:
Step 1: Choose a Company Name
Begin by selecting a unique name for the subsidiary company in India and adhering to the guidelines established by the Ministry of Corporate Affairs.
Step 2: Obtain DIN and DSC
There is a requirement to obtain a DIN and DSC for each of the proposed directors to file documents online with the Ministry of Corporate Affairs.
Step 3: Filing of Incorporation Documents
With the necessary DIN and DSC, their company can proceed to file the incorporation documents with MCA and submit the MoA and AoA along with the form for the appointment of directors.
Step 4: Obtain a Certificate of Incorporation
After submitting the incorporation documents and after the review and approval from the Ministry of Corporate Affairs, the subsidiary company will receive a certificate of incorporation.
Step 5: Open a Bank Account
After obtaining a certificate of incorporation, the company needs to open a bank account, which will typically take one week and can be done remotely.
Step 6: Registration for Tax
The subsidiary company needs to register for tax and compliance purposes, which involves obtaining a Tax Account Number (TAN), Value-Added Tax (VAT), or registration for various other taxes, such as GST, to obtain a GSTIN and corporate income tax.
Step 7: Registration of EPFO and ESIC
The company needs to register with the employment provident fund organization and the Employees’ State Insurance Corporation to ensure compliance with mandatory social security schemes for its employees.
Post-Incorporation Compliance for Indian Subsidiary Company
Establishing an Indian subsidiary company has become more important in registering and encouraging businesses to comply fully with regulations. However, the management needs to be aware of post-incorporation compliance requirements to avoid penalties.
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Opening of Bank Account
The Indian subsidiary company must open a bank account even before obtaining incorporation approval.
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Registration of Taxes
The company must obtain a PAN for the subsidiary company from the Income Tax department and register for a TAN for a tax deduction.
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Conducting First Meeting
As per Section 173 (1) of the Companies Act, 2013, the company must hold its first board of director meeting within 30 days of incorporation.
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Obtaining Office Address
According to Section 12(1), the company must have a registered office within 15 days of incorporation.
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Display of Company Name
The company must display its name at all business locations in the local language and obtain the company seal with the office name.
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Appointment of Auditor
Under Section 139 (1), the board of directors must appoint the first auditor within 30 days of incorporation.
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Maintaining of Statutory Record
The company must maintain a statutory register at its registered office in the prescribed form to avoid penalties.
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Preparing of Books of Accounts
According to Section 128, every company must maintain proper books of accounts that present the financial position of the company.
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Disclose Interest
Section 184 (1) of the Companies Act, 2013 requires each director to disclose their interest in any company, firm or association.
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