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

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

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

Capital: There is no minimum capital required to form a Forming a Subsidiary in India.
Directors: Minimum two directors are required to foreign subsidiary of indian company. Both should be individuals and at-least one of whom should be a resident of Forming 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 indian subsidiary registration.