Foreign Subsidiary Incorporation in India

“ForeignSubsidiary Incorporation in India”

Theforeign subsidiary is “A partially or wholly owned company that is part of a larger corporation with headquarters in another country.” This is to be noted that a subsidiary company which is owned by a foreign parent company is a separate legal entity. A foreign subsidiary company functions under the rules and regulations of the country where it is situated.

foreign subsidiary

For setting up a foreign subsidiary company in India, wholly owned subsidiary company comes into being only when a foreign company makes 100% FDI in India through an automatic route. This can be done where the inflow of 100% FDI is permitted and approval from Reserve Bank of India (RBI) is not required. Doing investment through automatic route requires no former approval of RBI or the Government and FDI can flow without these permissions.

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