A Subsidiary Company is a commercial entity where the parent company holds more than half of the shares and has control over the subsidiary. Despite this control, the subsidiary is an independent legal entity with its own management structure. The parent company makes crucial decisions, but the subsidiary operates independently. This guide provides comprehensive information on setting up a subsidiary company in India, including requirements, registration process, and types.
The most common form, where investors' liability is limited to the value of their shares. Requires at least two directors and shareholders.
Allows the subsidiary to raise funds from the public by issuing shares. Requires at least seven shareholders.
A subsidiary entirely owned (100% stake) by the parent company.
A subsidiary formed by two or more parent companies through a joint venture.
Documents needed for company registration
Simple steps to register your Private Limited Company
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Details about registration in State 1
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A mandatory board meeting must be held after registration.
Annual filing of financial statements and other necessary documents with relevant authorities.