Indian Subsidiary

There is a lot of interest among foreign companies to start their operations in India and tap into one of the largest and fast growing market, and have access to some of the best human resources in the world. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can invest and own a Company in India by acquiring shares of the company, subject to the FDI Policy of India. In addition, a minimum of one Indian Director who is a Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.

How foreign entities can setup business in India?

In India, business can be setup by following ways:

Liaison Office
Branch Office
Project Office
Wholly Owned Subsidiary Company
Joint Venture
Limited Liability Partnership

Type of business entity depends upon the need. India is considered as the most preferred country by the world startup community. Foreign companies have shown interest to start operations in India and ready to enter into the world’s fastest growing economy to access the best human resource in the world. A foreign nation (other than Entity of Pakistan and Bangladesh) can invest and start a business in India subject to FDI Policy. For investment in India, in the form of equity shares is monitored by the Reserve bank of India.

There are two categories of making investment in India either though automatic route or approval route. Automatic route means where no prior regulatory approval is required for investment in the Indian company. Investment in activities/industries where an automatic route is not permissible can be made with the approval of Reserve Bank of India.