Subsidiary Company

Subsidiary Company: The Best Structure for Foreign Companies Expanding into India

A Subsidiary Company is the most preferred way for foreign businesses to enter and operate in India. It gives full control to the parent company while allowing the Indian subsidiary to function as a locally registered Private Limited Company. This structure is ideal for international brands, tech companies, service providers, and global businesses looking to tap into the Indian market.

It offers flexibility, compliance confidence, and a strong legal identity — making it the safest and most practical expansion route.

100% Foreign Ownership Allowed

Foreign companies can own up to 100% of the Indian Subsidiary in most sectors. This means you operate with full control while complying with Indian business laws. It’s a smooth way to build an India presence without needing a local partner.

Strong Legal Identity

An Indian Subsidiary is treated just like any other Indian company. It can hire employees, open bank accounts, sign contracts, and conduct business freely. This gives global companies stability and a legally secure base for long-term operations.

Easy Market Entry

Compared to liaison or branch offices, a subsidiary offers more flexibility. You can engage in full commercial activities, generate revenue, and expand without restrictions. It’s ideal for businesses planning serious operations in India.

Tax and Compliance Benefits

A subsidiary enjoys the same tax benefits and exemptions as local Indian companies. It also helps ensure compliance with FDI norms, FEMA regulations, and Companies Act requirements. With proper structuring, it supports efficient tax planning for the parent company.