Foreign Subsidiary


A foreign subsidiary company is any company of which a company incorporated in another foreign country owns 50% or more of its stock shares. In this case, the international company is referred to as the controlling company or the parent company.

A business must be registered in India in order to be considered an international affiliate company in India. It makes no difference where the parent corporation is incorporated.

Compliance is based on many aspects of the business. Both compliances must be met according to the type of business that is organized, the industry of operations, the annual turnover, and the number of employees. A foreign business is specified in Section 2(42) of the Companies Act, 2013, and such a company shall obey regulations and rules imposed under multiple statutes and orders, including: – Companies Act, 2013 – Income Tax Act, 1961 – GST, 2017 – SEBI rules and regulations – FEMA (Foreign Exchange Management Act) of 1999 – RBI compliances, and so on.

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