A sister firm is another name for a subsidiary. It is also referred to as a firm under the supervision of another business. The Parent Company is the business that oversees the subsidiary. The Parent Company may have full or partial control over its subsidiary company. When a subsidiary firm is set up properly, the parent company can diversify by trying out a new industry. However, the requirements for establishing a subsidiary business in India vary depending on whether the parent firm is an Indian parent company or a foreign parent company. Let’s talk about how foreign and domestic companies can establish an Indian Subsidiary. Even a foreign company can easily establish a subsidiary company in India.