• Objects : THE PRINCIPAL TAX BENEFIT associated with adopting a subsidiary structure is the ability, on federal income tax returns, to offset profits in one part of the business with losses in another. Forming a subsidiary also can provide tax benefits at the state level

• Profits : Company can distribute its profits to its shareholders.

• Shareholding: To start , a minimum 2 shareholders is required. The parent company must hold 50% equity shares.

• Directors : Also require to appoint minimum 2 directors to run the objects of company.

• Capital: No Minimum paid up capital is prescribed.

• MOA & AOA : This document describe the object, rules and regulation for the company.

1. Name Approval - Only unique name approves 

2. Create a digital signature certificate

3. Obtain Director Identification Number (DIN)

4. Incorporation Procedure

5. Get Certificate of Incorporation, PAN, TAN

1. PAN and AADHAR of all Directors

2. Copy of utility bills (not more than two months);

3. Proof of office address (conveyance/lease deed/rent agreement with receipts);

4. Proof of identity and address of all directors; (Voter Id/driving License and Bank statement/Passport of directors/subscribers)

5. Activities of Company in Detail.

6. Paid Up Capital of Company

7. Allotment of Paid up Capital(Share)

8. Passport size photo of Directors

Generally time varies from 7 to 20 working days and also it depends upon availability of proper documents on time by client.

Advantage

• Goodwill carry forward

• Tax benefit

• Unique identity

Disadvantage

• High Compliance formalities

• Winding up may be time-consuming and complicated.