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India is a land of opportunities and skilled manpower as one would agree. Investing in India was never so easy, cheap and quick. One can start a wholly owned subsidiary anywhere in India. All you need a resident Indian director (not necessarily a shareholder but can be an employee!) and a rented (virtual) place of office to get going. 100% ownership, strategic decision making and control of operations rest with the your parent company at all times.
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.
At Ebizfiling, we have a separate wing of experts handling matters for Indian Subsidiaries, providing our expert help at every stage of the process.
Few points to make your
Retaining brand name
Exploring new markets
Limited to investment made
No liability of parent company
Types of Entrepreneurship
Private Limited or Public Limited Company
Limited Liability Partnership
Technical Know-How & Funds
Capability to start new companies
The Scope of Expansion
Diversifying the risk
Diversification of business
A small procedure for your
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Can a foreign company or foreign national own or start a business in India?
Yes, a foreign company or foreign national can own or start a business in India by acquiring equity shares of the company. Investment in a Company can be under two routes, automatic route or Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and is allowed in most of the businesses.
Can a foreign national be Director of an Indian company?
Yes, foreign nationals can be Directors of an Indian company after obtaining a Director Identification Number. Director Identification Number for a foreign national can be obtained by applying for the same with the Ministry of Corporate Affairs.
What are the requirements for starting a business in India?
For a foreign national or foreign company to start a Company in India, the foreign National must have an address for Registered Office in India and one Director on the board, who will be a Indian Citizen and Indian Resident.
What are businesses in which foreign nationals or companies cant invest?
Foreign investment in any form is prohibited in businesses engaged or proposes to engage in the following business:
i) Business of chit fund; or,
ii) Nidhi Company; or,
iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to agro & allied sector and tea plantations); or,
iv) Real Estate business, or construction of farm houses (Does not include development of townships, construction of residential / commercial premises, roads or bridges); or,
Trading in Transferable Development Rights (TDRs).
Can NRIs or Foreigners hold shares of a Private Limited Company?
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
What is Director Identification Number (DIN)?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
How many shareholders are required to incorporate a private limited company?
To incorporate a private limited company, a minimum of two shareholders are required. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies, including foreign companies.
How many directors are required in a private limited company?
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