Figure1

Incorporation of
Subsidiary of a Foreign
Company in India |
Subsidiary Company
Formation
 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.

WHY INCORPORATE OR FORM AN INDIAN SUBSIDIARY?

Incorporating an Indian Subsidiary is great first step towards starting your Business
in India. Incorporating subsidiary is a means for expanding organization in targeted
countries for the ultimate motivation of capturing business sector in the
destination countries. India has one among the largest and fastest developing
market.

Private Limited Company is the most popular form of business entity among
foreign investors, including USA investors, to form a Subsidiary, a joint venture or
100% owned company in INDIA.

Foreign Direct Investment of upto 100% is allowed under the automatic route in
most activities/sectors in India. Investment in activities / industries where
automatic route is not available can be made with the approval of the Government
under the Government Approved FDI method. IndiaFilings can be your legal and
professional partner in India to get your New Company / Subsidiary in India started
quickly and cost-effectively.

When a foreign Company makes 100 per cent FDI (Foreign Direct Investment) in
India through an automatic route, the Indian army becomes the Wholly
OwnedSubstinory Company of that Foreign Company Let's say XYZ Inc. USA owns
100 per cent shares in XYZ Private Ltd.

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The subsidiary company is a company which can be incorporated by acquiring the
majority of shares of the company (more than 50%) or either by way of controlling
the composition of a board of India. Holding or subsidiary company is related to
each other by virtue of their holding subsidiary relationship having separate legal
entities.

A wholly owned subsidiary is a company that is completely owned by another

company. The company that owns the subsidiary is called the parent company or
holding company. 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 or an entity incorporated outside India 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 an Indian Director and
Indian Resident is required for incorporation of an Indian subsidiary along with an
address in India.

For more information Click here

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 Contact Us:

Head Office (India)

Venture Care Branch Office (Netherlands)
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Dhankawadi, Near Rajshri Shahu JonkerFransstraat 46,
Bank, 3031 AVRotterdam,(NL)
Pune, Maharashtra 411043 (IN)
Phone:+31 614 575 275
Phone: (020)-65 3636 33

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