Indian Subsidiary Registration involves the process by which a foreign company establishes a subsidiary entity in India, typically as a private limited company. While the process itself is usually straightforward, businesses commonly run into avoidable issues along the way. Here are the mistakes we see most often, and how to steer clear of them.
Mistake 1
Not appointing the mandatory resident director.
Mistake 2
Missing sector-specific FDI approval requirements.
Mistake 3
Delaying post-incorporation reporting to the RBI.
Mistake 4
Underestimating document notarization/apostille timelines from the parent's home country.
How to Avoid These Issues
Most of these mistakes come down to preparation. Having the right documents ready — Board resolution from the parent company authorizing the subsidiary, Digital Signature Certificates for proposed directors, including at least one resident director, Foreign investment route confirmation (automatic or approval route), among others — and understanding the process before you start goes a long way toward a smooth outcome with the Ministry of Corporate Affairs (MCA), along with FDI compliance requirements.
Quick Reference: What You'll Need
- Board resolution from the parent company authorizing the subsidiary
- Digital Signature Certificates for proposed directors, including at least one resident director
- Foreign investment route confirmation (automatic or approval route)
- Registered office address proof in India
Need Help With This?
Leegal's team handles registration, compliance, and advisory work like this end-to-end, with transparent pricing and a dedicated point of contact throughout.
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