Selecting the type of Company in Establishing a Subsidiary in India-

According to FEMA guidelines, Foreign Direct Investment (FDI) is not allowed in case of Proprietorship, Partnership Firm and indian subsidiary registration. Though investment in LLP’s is allowed, but it requires prior approval of the RBI. and us subsidiary of indian company.

Hence, the easiest and fastest way set up a business in subsidiary of foreign company by NRI’s and Foreign Nationals/entities is through Establishing a Subsidiary in India.

Minimum requirements Establishing a Subsidiary in India-

Capital: There is no minimum capital required to form a Establishing a Subsidiary in India.
Directors: Minimum two directors are required to subsidiary of foreign company in india. Both should be individuals and at-least one of whom should be a resident of Establishing a Subsidiary in India. (A resident of India is a person who has stayed in India for at-least 182 days in the previous year).
Shareholders: Companies Act, 2013 requires that a Private Limited Company have a minimum of two shareholders. There is no condition for residential status of shareholders. Shareholders can be either individuals or entities or a combination of both for subsidiary of foreign company.