Foreign Subsidiary

Foreign Subsidiary Compliance

What is a Wholly Owned Subsidiary Company in India?

A Wholly Owned Subsidiary Company is a foreign entity that is registered, incorporated or formed according to the laws and regulations of the host country in which the Indian Party makes a direct investment.

What are the forms in which business can be conducted by a foreign company in India?

A foreign company planning to set up business operations in India may:

1. Incorporate a company under the Companies Act, 2013, as a Joint Venture or a Wholly Owned Subsidiary.

A company can be registered as private limited or public limited. A private limited company is a closely held company and enjoys the privileges given by the Companies Act, 2013. Generally foreign Companies incorporate Private limited Company in India.

1.100 % FDI (Foreign Direct Investment) – Sector specific- RBI (Reserve Bank of India) prior approval is not required.
2.Minimum 2 Share Holders ( Individual, Firm, Corporate) and 2 Directors ( Individual only)- Private Limited
3.Funding in the form of Capital or Loan
4.No Minimum Share Capital now
5.Registered office – India

A public limited company is a company where public is interested and it is required to comply with set of rules and regulations framed by the Companies Act, 2013.

1.Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company which can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or Other Place of Business) Regulations, 2000.

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Foreign Subsidiary