Setting up a subsidiary in India

Setting Up a Subsidiary in India: A Complete Guide

India has become one of the most attractive destinations for foreign investments due to its rapidly growing economy, large consumer market, and strategic geographic location. For foreign companies looking to expand their business operations, setting up a subsidiary in India offers a great opportunity to tap into this burgeoning market. However, the process of establishing a subsidiary in India can seem complex, given the country’s regulatory and compliance requirements. In this blog, we will walk you through the entire process of setting up a subsidiary in India, highlighting key steps, legal considerations, and tips to ensure smooth registration and operation.

What is a Subsidiary Company?

A subsidiary is a company that is controlled by another company, typically referred to as the parent company. The parent company holds a majority of shares in the subsidiary, giving it control over the company’s operations and management. In the context of India, a foreign company may set up a subsidiary as a separate legal entity that is registered under Indian law. The subsidiary is typically established to conduct business activities within India while being governed by Indian corporate laws.

Benefits of Setting Up a Subsidiary in India

Setting up a subsidiary in India has several advantages, particularly for foreign companies looking to expand their footprint in the country. Some of the benefits include:

• Access to India’s Growing Market: India is the second most populous country in the world, with a large and diverse consumer base, making it a high-potential market for various industries.
• Limited Liability: A subsidiary operates as a separate legal entity, which means that the parent company’s liability is limited to the shares it holds in the subsidiary.
• Tax Incentives: Depending on the nature of the business, the Indian government offers certain tax incentives and exemptions for foreign investors setting up subsidiaries, especially in specific sectors like manufacturing, technology, and research and development.
• Brand Recognition: Having a legal presence in India through a subsidiary can enhance a company’s brand image and customer trust in the local market.
• Operational Control: Unlike joint ventures, where a foreign company may have to share control, a subsidiary allows the parent company to maintain full operational control over the Indian business.

Types of Subsidiary Companies in India

Before delving into the process, it’s important to understand the types of subsidiary companies foreign entities can set up in India:

• Wholly-Owned Subsidiary: A wholly-owned subsidiary is a company where the parent company holds 100% of the shares. This structure offers full control to the parent company over the subsidiary’s operations and decisions.
• Joint Venture Subsidiary: In this case, the parent company partners with an Indian company or other foreign entities to form a joint venture. The ownership is shared, with the foreign company holding a majority or minority stake.

The structure of the subsidiary will depend on the foreign company’s business goals, level of control desired, and the strategic partnership model.

Key Steps to Setting Up a Subsidiary in India

Setting up a subsidiary in India requires adherence to various legal, regulatory, and procedural requirements. The process can be broken down into several stages:

Step 1: Decide on the Type of Business Entity

The first step in setting up a subsidiary in India is determining the most suitable type of business entity. There are primarily three options for foreign companies looking to establish a subsidiary:

1. Private Limited Company: The most common structure for a subsidiary in India is the private limited company. This type of entity requires at least two directors and two shareholders. It limits liability to the extent of the company’s share capital and offers the flexibility of raising capital from investors.
2. Public Limited Company: A public limited company can also be formed, but this requires a minimum of seven members and three directors. This structure is less common for subsidiaries but may be suitable for large foreign entities looking to expand their operations in India.
3. Limited Liability Partnership (LLP): In some cases, a foreign company may prefer to set up a limited liability partnership (LLP) in India, which allows the foreign entity to have limited liability while sharing control with one or more partners. This structure is particularly useful for professional services firms.

Step 2: Obtain the Necessary Approvals and Permits

Once the type of business entity has been decided, the next step is to obtain the necessary approvals and permits from Indian authorities. Some of the approvals you may need include:

• Foreign Direct Investment (FDI) Approval: India allows foreign investment in many sectors through the Foreign Direct Investment (FDI) route. Depending on the sector, foreign companies may need approval from the Reserve Bank of India (RBI) or the Foreign Investment Promotion Board (FIPB).
• Sector-Specific Clearances: Certain industries, such as defense, media, and telecommunications, have sector-specific regulations that may require additional clearances from relevant ministries or departments.
• Filing with the Registrar of Companies (RoC): The company must be registered with the Registrar of Companies (RoC) under the Ministry of Corporate Affairs. The registration process requires the company to file several documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), along with details of directors and shareholders.

Step 3: Register the Company

Once the necessary approvals have been obtained, the next step is the registration of the company. The registration process involves the following key steps:

• Obtain Digital Signature Certificates (DSC): All documents filed with the Registrar of Companies must be signed digitally. Directors and shareholders must obtain a Digital Signature Certificate (DSC) to facilitate this process.
• Apply for Director Identification Number (DIN): Every director of the company must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs.
• Choose a Company Name: The company name must be unique and comply with the naming guidelines set by the Ministry of Corporate Affairs. You will need to submit an application for name approval before proceeding with the registration.
• Draft the MOA and AOA: The Memorandum of Association (MOA) outlines the company’s business objectives, while the Articles of Association (AOA) defines the rules and regulations governing the company’s operations. Both documents must be submitted as part of the registration process.
• File Incorporation Forms: Once all the documents are in order, you will need to file the incorporation forms with the Registrar of Companies (RoC). Upon approval, the company will receive a Certificate of Incorporation.

Step 4: Set Up the Office and Bank Accounts

After registering the subsidiary, the next step is to set up physical operations. This involves:

• Lease or Purchase of Office Space: You will need to lease or purchase office space in India. The office must be registered with the local municipal authorities to ensure that all legal and tax obligations are met.
• Opening a Bank Account: The subsidiary must open a bank account in India. The bank account will be required to handle transactions and meet the financial requirements of the subsidiary.

Step 5: Comply with Ongoing Regulatory Requirements

After the subsidiary is set up, the company must ensure that it complies with ongoing regulatory and tax requirements in India. Some of these include:

• Goods and Services Tax (GST): If the subsidiary’s turnover exceeds the prescribed limit, it must register for Goods and Services Tax (GST).
• Annual Filings: The company must file annual returns and financial statements with the Registrar of Companies. The financial statements should be audited by a certified Chartered Accountant in India.
• Tax Compliance: The subsidiary must comply with Indian tax laws, including corporate tax, transfer pricing regulations, and employee-related taxes like the Provident Fund (PF) and Employees’ State Insurance (ESI).
• Labor Laws: The subsidiary must comply with India’s labor laws, which govern wages, working conditions, and employee benefits.

Legal Considerations When Setting Up a Subsidiary in India

When setting up a subsidiary in India, it is crucial to be aware of various legal considerations that will impact the company’s operations:

• Foreign Investment Regulations: Foreign investment in India is regulated by the Reserve Bank of India (RBI) and must comply with the FDI policy, which specifies the maximum permissible foreign ownership in various sectors.
• Employment Laws: The subsidiary must adhere to India’s labor laws, which protect employees’ rights and govern hiring practices, compensation, benefits, and termination procedures.
• Intellectual Property (IP) Protection: Foreign companies must ensure that their intellectual property rights (patents, trademarks, etc.) are protected under Indian laws.
• Dispute Resolution: India’s legal system provides mechanisms for dispute resolution, including arbitration. It’s crucial for the subsidiary to understand its rights and obligations under Indian law to avoid litigation.

Conclusion

Setting up a subsidiary in India is an exciting venture for foreign businesses seeking to tap into one of the world’s largest and fastest-growing markets. However, it is essential to navigate the legal, regulatory, and operational challenges carefully to ensure a smooth setup. By understanding the process, selecting the right business entity, obtaining necessary approvals, and complying with local regulations, companies can establish a successful subsidiary that thrives in the Indian market.

Whether you’re looking to expand your business or establish a long-term presence in India, working with legal and tax experts familiar with Indian corporate laws can help streamline the process and ensure compliance

CPA in India by Raaas – Your Gateway to Global Accounting Standards

 In a world where businesses are expanding across borders, the demand for globally recognized financial professionals like Certified Public Accountants (CPAs) is growing rapidly. Whether you're a multinational enterprise or a startup with international aspirations, CPA in India by Raaas provide the perfect blend of global accounting standards and local compliance expertise.

What is a CPA?

A Certified Public Accountant (CPA) is a prestigious professional designation recognized worldwide, especially in countries like the United States, Canada, and Australia. CPAs are experts in financial reporting, auditing, taxation, and compliance. In India, businesses increasingly seek CPAs to align their financial operations with international benchmarks.

Why CPA Services Matter in India

As India continues to attract foreign investments and Indian businesses expand globally, the need for CPA-level expertise becomes crucial. This includes:

Adhering to IFRS and US GAAP standards

Complying with international tax regulations

Preparing for cross-border audits and transactions

Offering financial insights for global expansions

Raaas: Trusted CPA Services in India

Raaas is a reputed accounting and advisory firm in India that offers comprehensive CPA services for businesses and individuals. With a team of experienced professionals and a deep understanding of both Indian and international accounting laws, Raaas bridges the gap between global financial standards and local business needs.

CPA Services by Raaas Include:

Financial Reporting & Compliance

Preparation of financial statements in line with IFRS/US GAAP

Monthly, quarterly, and annual reporting for global stakeholders

Cross-border Taxation Advisory

International tax planning and compliance

Transfer pricing documentation and strategy

Double taxation avoidance consulting

Audit & Assurance

Internal and external audits

SOX compliance and risk management

Accounting Outsourcing

End-to-end bookkeeping and payroll management

Virtual CFO services for international clients

Business Advisory for Global Expansion

Entity setup in the US or abroad

Regulatory filings and ongoing compliance support

Why Choose Raaas for CPA Services in India?

✅ Qualified CPA Professionals

✅ Deep Knowledge of US, UK & Indian Accounting Standards

✅ Customized Solutions for Startups, SMEs, and MNCs

✅ Cost-Effective and Scalable Services

✅ Trusted by Global Clients Across Industries

Whether you're a foreign company setting up in India or an Indian business expanding overseas, Raaas ensures you stay compliant and future-ready with top-notch CPA services.

Who Can Benefit from CPA Services?

Foreign companies operating in India

Indian businesses with overseas subsidiaries

NRIs and expatriates with dual income sources

Startups seeking international funding or IPOs

Businesses requiring IFRS/US GAAP compliance

Conclusion

Global business needs global financial expertise. CPA in India by Raaas brings you the best of both worlds — international accounting proficiency and local regulatory knowledge. With Raaas as your financial partner, you can focus on growth while leaving the complexities of cross-border compliance to the experts.

Startup in India: Expert Support by Raaas for Your Entrepreneurial Journey

 Looking to launch your startup in India? Raaas offers expert consulting, legal compliance, and financial services to help you build and scale your startup successfully.

Startup in India by Raaas: Turning Ideas into Impactful Businesses

India has rapidly emerged as one of the world’s most dynamic startup ecosystems. With supportive government policies, access to talent, and a growing digital economy, starting up in India offers unmatched potential. But with great opportunity comes complexity—legal structures, registrations, funding, compliance, and more. That’s where Raaas (Registration, Accounting, and Advisory Services) steps in.

Why Start a Business in India?

India offers a vibrant environment for startups, with:

A large and growing consumer base

Availability of skilled professionals

Government schemes like Startup India and Stand-Up India

Access to angel investors, VCs, and incubators

Rapidly developing infrastructure and digital penetration

Whether you’re a local entrepreneur or a foreign national looking to tap into India’s market, now is the perfect time to begin.

Services Offered by Raaas for Startups in India

Raaas provides end-to-end support tailored for startups at every stage of their journey—from ideation to scaling. Their core services include:

1. Company Registration & Legal Setup

Private Limited Company, LLP, OPC, and more

Startup India recognition assistance

PAN, TAN, and GST registration

2. Accounting & Bookkeeping

Cloud-based bookkeeping solutions

Monthly and annual financial reporting

Budgeting and expense tracking

3. Taxation & Compliance

Income Tax & GST compliance

Filing of returns and ROC compliance

TDS, ESIC, PF, and payroll support

4. Advisory & Business Consulting

Business plan development

Startup funding guidance

Regulatory approvals and documentation

Why Choose Raaas for Your Startup in India?

Starting a business requires more than a great idea. It demands time, precision, and legal accuracy. Raaas brings industry experience and startup-specific knowledge to help you build a strong foundation.

✅ Quick and easy registration process

✅ Transparent pricing with no hidden charges

✅ Tailored solutions for tech startups, service providers, manufacturers, and more

✅ Dedicated experts for ongoing support

Government Support for Startups in India

India’s Startup India initiative, launched by the Government of India, provides:

Tax exemptions

Self-certification for labor and environmental laws

Easier access to funds through a dedicated fund of funds

IPR benefits and faster trademark registrations

Raaas assists startups in registering under the Startup India scheme and helps them avail of these benefits effectively.

Final Thoughts

Launching a startup in India is an exciting but demanding journey. With Raaas by your side, you can focus on building your product and acquiring customers—while the experts handle the rest. Whether you're a first-time founder or an experienced entrepreneur, Raaas ensures your business is built on a compliant and growth-ready foundation.

Startup in India by Raaas – Your Trusted Partner in Business Growth

 Introduction

India has emerged as a global hub for startups, driven by innovation, government support, and a large talent pool. But starting a business involves navigating legal formalities, compliance, and operational challenges. That’s where Raaas (Regulatory Assurance and Advisory Services) comes in. With years of experience in supporting entrepreneurs, Raaas helps you establish and grow your startup in India seamlessly.

Why Start a Business in India?

India presents a thriving environment for startups due to:

Vast market potential

Supportive government initiatives like Startup India

Affordable skilled workforce

Rapid digitization and innovation ecosystem

However, to leverage these opportunities, it’s essential to set up your business with a strong legal and financial foundation — and that’s what Raaas ensures.

Services Offered by Raaas for Startups in India

1. Startup Registration Services

Raaas handles all aspects of company incorporation, whether it’s a Private Limited Company, LLP, or OPC. From name reservation to obtaining the Certificate of Incorporation, everything is taken care of.

2. Legal & Regulatory Compliance

Avoid penalties and delays with Raaas' ongoing compliance services. They ensure your startup complies with:

Companies Act

Income Tax Act

GST regulations

ROC filings

3. Business Structuring Advisory

Choosing the right business model is crucial. Raaas provides professional advice on the most suitable structure based on your vision, funding plans, and operations.

4. Accounting and Bookkeeping

Their team manages your books, payroll, tax filings, and prepares financial statements to keep your business audit-ready.

5. Startup India Recognition

Get recognized under the Startup India Scheme and enjoy benefits like tax exemptions, faster patent processing, and government funding access.

6. Virtual CFO Services

Get strategic financial insights without hiring a full-time CFO. Raaas helps with budgeting, investor relations, and fundraising strategies.

Why Choose Raaas for Your Startup in India?

✅ Experienced professionals with in-depth knowledge of Indian regulations

✅ Tailor-made solutions to suit your unique business needs

✅ Transparent pricing with no hidden charges

✅ Timely execution and dedicated client support

How to Get Started with Raaas?

Setting up your startup in India is just a few steps away:

Schedule a free consultation

Discuss your business idea and requirements

Raaas designs a custom roadmap

Launch and grow with full legal & financial backing

CPA in India by Raaas

 In today’s dynamic business environment, financial accuracy, compliance, and strategic planning are crucial for businesses to thrive. A Certified Public Accountant (CPA) in India plays a vital role in ensuring that businesses maintain financial integrity and adhere to global accounting standards. Raaas, a leading accounting and advisory firm, provides top-tier CPA services in India, catering to businesses, startups, and multinational corporations.

Why Choose CPA Services in India?

CPA professionals bring a high level of expertise in international accounting, taxation, and auditing. Here’s why businesses need CPA services:

1. Expertise in Global Accounting Standards

CPAs are trained in IFRS (International Financial Reporting Standards) and US GAAP, making them ideal for businesses that operate internationally.

2. Tax Compliance & Advisory

Navigating India’s complex tax laws requires expert guidance. CPAs provide GST compliance, direct and indirect tax planning, and income tax advisory to ensure businesses stay tax-efficient.

3. Financial Audits & Assurance

Regular audits help businesses maintain transparency and credibility. CPA firms conduct statutory audits, forensic audits, and internal financial reviews to enhance financial accuracy.

4. Business Strategy & Risk Management

CPAs assist in financial forecasting, risk assessment, and strategic planning to optimize business growth and profitability.

5. Cross-Border Transactions & Compliance

For businesses dealing in international markets, CPAs ensure compliance with foreign exchange laws (FEMA), transfer pricing, and cross-border taxation.

Why Raaas for CPA Services in India?

Raaas is a trusted CPA service provider, offering tailored financial solutions that align with your business needs. Here’s what sets Raaas apart:

Certified and Experienced Professionals: A team of highly qualified CPAs with years of industry experience.

Comprehensive Financial Solutions: From accounting to taxation, Raaas provides end-to-end financial management.

Global Compliance Support: Expertise in handling international taxation and regulatory frameworks.

Customized Services: Personalized financial strategies to maximize business efficiency.

Conclusion

Partnering with a CPA in India by Raaas ensures that your business meets financial and regulatory standards with precision. Whether it’s taxation, auditing, or strategic financial planning, Raaas provides expert CPA services to help businesses grow with confidence.

For professional CPA assistance, contact Raaas today and take your business to new heights!

Company Incorporation in India by Raaas

Starting a business in India is an exciting endeavor, but navigating the complexities of company incorporation can be challenging. Raaas, a trusted name in business consultancy, offers seamless company incorporation services in India to help entrepreneurs establish their businesses with ease.

Why Company Incorporation in India?

India is one of the fastest-growing economies in the world, making it an attractive destination for business ventures. Incorporating a company in India provides several benefits, including:

Limited Liability Protection: Shareholders' liability is limited to their investment in the company.

Legal Recognition: A registered company has a distinct legal identity, separate from its owners.

Access to Funding: Incorporated entities can raise capital through equity, venture capital, or bank loans.

Enhanced Credibility: Businesses with legal registration gain more trust among customers, investors, and stakeholders.

Types of Business Entities in India

Before incorporating a company, it's essential to choose the right business structure. Raaas assists entrepreneurs in selecting from the following options:

Private Limited Company: The most preferred structure due to limited liability, separate legal existence, and ease of fundraising.

Public Limited Company: Suitable for businesses looking to raise capital from the public through stock issuance.

Limited Liability Partnership (LLP): A hybrid structure that combines features of a company and a partnership, ideal for small businesses and professionals.

One Person Company (OPC): Designed for solo entrepreneurs who want limited liability protection.

Sole Proprietorship & Partnership Firm: Suitable for small businesses with minimal regulatory requirements.

Steps to Incorporate a Company in India with Raaas

Raaas simplifies the company incorporation process through a structured and efficient approach:

1. Business Structure Selection

Our experts assess your business model and recommend the most suitable entity for incorporation.

2. Name Reservation

We assist in selecting and registering a unique company name with the Ministry of Corporate Affairs (MCA).

3. Digital Signature Certificate (DSC) & Director Identification Number (DIN)

Obtaining DSC and DIN is essential for directors to sign electronic documents.

4. Filing Incorporation Documents

Raaas prepares and submits necessary documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), with the Registrar of Companies (RoC).

5. Company Registration Approval

Once the application is verified, the RoC issues a Certificate of Incorporation, confirming the legal establishment of the company.

6. Post-Incorporation Compliance Assistance

We help in obtaining a PAN, GST registration, bank account setup, and compliance advisory for smooth business operations.

Why Choose Raaas for Company Incorporation in India?

Raaas is a one-stop solution for entrepreneurs looking to incorporate a company in India. Our key advantages include:

Expert Guidance: A team of experienced professionals ensuring hassle-free incorporation.

Fast Processing: Quick turnaround time with minimal paperwork.

Cost-Effective Services: Affordable incorporation packages tailored to your business needs.

Post-Incorporation Support: Assistance in compliance, taxation, and legal matters to ensure smooth business operations.

Get Started with Raaas Today!

Incorporating a company in India has never been easier. Whether you're a startup, small business, or an international company looking to establish a presence in India, Raaas provides end-to-end support. Contact us today to begin your business journey in India with confidence!