Selecting the type of Company in foreign subsidiary incorporation-

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

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

Minimum requirements foreign subsidiary incorporation-

Capital: There is no minimum capital required to form a foreign subsidiary incorporation.
Directors: Minimum two directors are required to foreign subsidiary incorporation. Both should be individuals and at-least one of whom should be a resident of foreign subsidiary incorporation. (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 foreign subsidiary incorporation.