According to FEMA guidelines, Foreign Direct Investment (FDI) is not allowed in case of Proprietorship, Partnership Firm and incorporation of wholly-owned subsidiary in india companies act 2013. Though investment in LLP’s is allowed, but it requires prior approval of the RBI. and incorporation of foreign subsidiary in india.
Hence, the easiest and fastest way set up a business in foreign company incorporation in india by NRI’s and Foreign Nationals/entities is through incorporation of subsidiary of foreign company in india.
- Capital: There is no minimum capital required to form a incorporation of subsidiary of foreign company in india.
- Directors: Minimum two directors are required to incorporation of subsidiary of foreign company in india. Both should be individuals and at-least one of whom should be a resident of incorporation of foreign company 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 incorporation of company with foreign directors.
VenturEasy can help you with the Incorporation of Subsidiary in India, foreign company registration in india, foreign company registration, international subsidiary. Get in touch with us at hello@ventureasy.com
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