Are you looking for  SUBSIDIARY COMPANY registration

 

MEANING OF SUBSIDIARY COMPANY-

A subsidiary company is a company owned and controlled by another company. The owning company is called a parent company or sometimes a holding company. Holding company may be –

  • Indian company

  • Foreign company

The company shall be deemed to be subsidiary of another if any of the following conditions are satisfied-

  • Control the composition of its board of directors;

  • Other exercises and control more than one-half of total voting power  either at its own or together with one or more of its subsidiary companies; or

  • The first- mentioned company is a subsidiary of any company which is that other` subsidiary.

PROCESS-

An Indian company may receive Foreign Direct Investment under the two routes as given under:

  • Automatic Route- FDI is allowed under the automatic route without prior approval of-

  • Government or

  •  Reserve Bank of India

 

In  all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time .

 

  • Government Route -FDI in activities not covered under the automatic route requires prior approval of the Government. Proposals for foreign investment under Government route, are considered by respective Administrative Ministry/Department.

        Foreign investment in sectors/activities under government approval route will be subject to governmentapproval where:

 

(i)   An Indian company is being established with foreign investment and is not owned by a resident entity or

(ii)  An Indian company is being established with foreign investment and is not controlled by a resident entity or

(iii) Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident   Outside India) Regulations will be deemed to be a domestic investment at par with the investment made by residents.

(iv) A company, trust, and partnership firm incorporated outside India and owned and controlled by non-resident Indians will be eligible for investments under Schedule 4 of FEMA (Transfer or issue of Security by Persons Resident Outside India) Regulations and such investment will also be deemed domestic investment at par with the investment made by residents.