Forming Foreign Company Subsidiary in India
Setting up an Indian subsidiary requires the right incorporation structure, FEMA alignment, shareholder documentation, and post-incorporation planning. We support foreign promoters with incorporation, reporting coordination, and practical compliance guidance.
What is Wholly Owned Subsidiary Company in India by Foreign Company
Where a foreign company makes hundred percent (100 %) (takes all shares) FDI in India through automatic route, the Indian company become the wholly owned subsidiary company in India. For Example – XYZ Inc. of America owns 100 percent shares in Shree Pvt. Ltd. Then Shree Pvt. Ltd. becomes the Subsidiary Company.
Types of Business Entities in India
- Private Limited Company
- Public Limited Company
- Unlimited Company
- Limited Liability Partnership (LLP)
- Partnership
- Sole Proprietorship
As a Investor (Foreign) who is making investment in India, it is very important to make a right kind of suitable business which full fill its purpose and take care of liabilities and tax planning. Companies who Planning do enter in India market need to pay a special attention to what entry strategy to be taken. We help foreign invertor to take prepare right entry level strategy for minimizing taxes and further compliances and registration of Foreign Company Subsidiary In India.
Documents required for Wholly Owned Indian Subsidiary
- 2 Passport Size photographs
- Any two Address Proofs (Aadhaar Card / Driving License / Voter ID / Passport)
- PAN CARD (Not mandatory in case of Foreign Director)
- Passport (Mandatory for Foreign Director, Must be in English Language and Duly Apostle)
- Other Documents such as Credit Card Statement, Bank Passbook, Telephone Bill & Electricity Bill
* Note: If the Proposed Director is in Foreign country, then all the documents must be Duly Apostle.
Frequently Asked Questions
What are the requirements to become a director?
A director should be a natural person above 18 years of age and should not be disqualified under the applicable law. Foreign nationals can also act as directors, subject to the present company-law and FEMA-related requirements.
Is an office required for starting a Private Limited Company?
An address in India where the registered office of the Company will be situated is required. The premises can be Commercial / Industrial / Residential where communication from the MCA will be received.
How long does incorporation usually take?
The timeline depends on document readiness, notarisation or apostille requirements, name approval, and MCA processing. In cross-border cases, foreign-document preparation often has the biggest impact on turnaround time.
Can NRIs and foreign investors hold shares in an Indian private limited company?
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.