Process to register Indian Subsidiary Company from France

[Ishita Ramani]

Introduction

Registering a company in India has become a streamlined and efficient process, particularly for foreign entrepreneurs. With India's rapid economic growth and favorable business environment, starting a company in the country presents numerous advantages. In this article, we will provide valuable information on the benefits of registering an Indian Subsidiary Company from France, the entry strategy for company registration, and the process to establish your business successfully.

Entry Strategy for Company Registration in India from France

In India, a French company or individual can choose to form a Private Limited Company, public limited company, or a Limited Liability Partnership (LLP). Private or public limited companies usually allow Foreign Direct Investment (FDI) through the automatic route in most sectors. However, LLP permits FDI only in sectors or activities that allow 100% FDI through the automatic route.

It's important to note that as per FEMA guidelines, FDI is not permitted in other business types such as sole proprietorships, partnerships, or one-person companies. Therefore, NRIs and foreign nationals cannot establish these types of entities in India. A French company or individual can establish a public limited company with a minimum of seven members, whereas a Private Limited Company can be formed with just two members. A Private Limited Company can have a maximum of 200 shareholders, while a public limited company has no limit on the number of shareholders.

Benefits of Company Registration in India from France

1. Comprehensive Taxation: India offers a vast network of tax treaties and has implemented recent tax reforms such as the Direct Taxes Code and the Goods and Services Tax (GST), making it easier to conduct business and manage tax obligations efficiently.
2. Low Operating Expenses: Operating costs in India, ranging from infrastructure to labor and salaries, are comparatively lower. Additionally, the moderate tax policies and availability of a skilled workforce contribute to reducing the overall cost of doing business.
3. Robust Economic System: India boasts a well-regulated financial system with access to developed markets worldwide. Businesses can obtain financing through various sources, subject to Reserve Bank of India (RBI) regulations.
4. Extensive Trade Network: India is home to numerous technical and management institutions of international standards, backed by regional and bilateral free trade agreements. These institutions produce highly skilled human resources, and the country has a vast network of trading partners.
5. Government Initiatives: The Indian government has introduced several initiatives to attract foreign investment across different sectors. Regular announcements of attractive schemes and policies create an investor-friendly environment. Ministries also make efforts to simplify rules and regulations governing foreign investment in specific industries.

Documents Required for Registering a Company in India from France

To register as an Indian Subsidiary Company from France, the following documents are required:

• Notarized ID proof of all foreign directors/shareholders.
• Notarized address proof of the foreign directors/shareholders.
• Photographs of all shareholders and directors.
• Notarized address proof of the parent company's registered office.
• Notarized incorporation certificate of the parent company.
• Address proof of the subsidiary company's registered office in India.

Additionally, specific requirements include submitting a utility bill as address proof to the Registrar of Companies (ROC), having a registered office in India, and obtaining a letter of authorization from the landlord if using a rental office as the registered office.

Process for Registering a Company in India from France

1. Start the registration process for your Subsidiary Company in India from France by ensuring you have gathered all the necessary documents.

2. Choose a unique and suitable name for your Subsidiary Company that complies with the registration requirements.

3. Proceed with drafting the Articles of Association (AOA) and Memorandum of Association (MOA) for your Subsidiary Company. These documents should include crucial information such as the share capital, member details, liability to members, and shareholding structure.

4. Complete the application for subsidiary registration using Form SPICe+:

• Spice+ for is divided in two two parts:
• Part A: Apply for the name reservation of the company in Part A of the form Spice+. it can be used for taking the name approval of the proposed Company and also for filing Company registration in one go.
• Part B: In Part B of the Form Spice+, apply for the following services:

1. Incorporation
2. DIN allotment
3. Mandatory issue of PAN
4. Mandatory issue of TAN
5. Mandatory issue of EPFO registration
6. Mandatory issue of ESIC registration
7. Mandatory issue of Profession Tax registration(Maharashtra)
8. Mandatory Opening of Bank Account for the Company and
9. Allotment of GSTIN (if so applied for)

5. Open a bank account in India

Conclusion

India's thriving business landscape and favorable government initiatives have made it an attractive destination for foreign entrepreneurs, including those from France. Registering a company in India offers numerous benefits, such as comprehensive taxation, lower operating expenses, access to a robust economic system, an extensive trade network, and government support through various initiatives. By following the entry strategy, understanding the documentation requirements, and following the step-by-step process, French companies can successfully establish their presence in the Indian market. It is advisable to seek professional guidance to ensure compliance with all legal and regulatory aspects, thereby setting the stage for a successful business venture in India.