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Foreign Subsidiary
Foreign Subsidiary Compliance
What is a Wholly Owned Subsidiary Company in India?
A Wholly Owned Subsidiary Company is a foreign entity that is registered, incorporated or formed according to the laws and regulations of the host country in which the Indian Party makes a direct investment.
What are the forms in which business can be conducted by a foreign company in India?
A foreign company planning to set up business operations in India may:
1. Incorporate a company under the Companies Act, 2013, as a Joint Venture or a Wholly Owned Subsidiary.
A company can be registered as private limited or public limited. A private limited company is a closely held company and enjoys the privileges given by the Companies Act, 2013. Generally foreign Companies incorporate Private limited Company in India.
1.100 % FDI (Foreign Direct Investment) – Sector specific- RBI (Reserve Bank of India) prior approval is not required. 2.Minimum 2 Share Holders ( Individual, Firm, Corporate) and 2 Directors ( Individual only)- Private Limited 3.Funding in the form of Capital or Loan 4.No Minimum Share Capital now 5.Registered office – India
A public limited company is a company where public is interested and it is required to comply with set of rules and regulations framed by the Companies Act, 2013.
1.Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company which can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or Other Place of Business) Regulations, 2000.
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