Registration of foreign company

As per my view, and after going through provisions of section 591, foreign company in your case, does not required to be registered in India.

We have many such clients.

CA Rajesh Balsara.

Thanks Are you aware of any case law?

Aksh*ta, there is no need of case law as the section 591 of Companies Act is very clear on the matter. Moreover the wholly owned subsidiary is already incorporated in India under the Companies Act ,1956.

When a foreign company has a wholly owned subsidiary in India, the subsidiary is treated as an Indian company under the Companies Act, 2013.

Key Points:    

1. Foreign Company Registration: 

• The foreign company must register with ROC within 30 days of establishing a place of business in India under Section 380 of the Companies Act, 2013.

• Required documents: certified copies of the charter/ memorandum, board resolution, list of directors, and details of the subsidiary.
  
  

2. Subcontracting Work to Indian Subsidiary:

• If the Indian subsidiary executes the work, all taxes, GST, and compliances apply as per Indian law.

• The foreign parent company does not need a separate Indian entity for subcontracted work if it is done through the registered subsidiary.
  
  

3. Compliance:

• File Form FC-1 with ROC for foreign company registration.

• Maintain statutory books, annual returns, and adhere to RBI guidelines for foreign investment.
  
  

In a nutshell, the foreign parent must register as a foreign company but can legally subcontract work to its wholly owned Indian subsidiary without extra registration for the same work. To establish your wholly owned subsidiary, consult any firm/company like Setindiabiz to register it hassle-free without fully indulging into the process.