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Subsidiary of Foreign Company Price - 5000/ Book Now

As per Govt of India and Ministry of Finance planning, India is aiming to become 5 trillion economy and it is fastest growing economies of the world with plenty of resources and business opportunities which make it a preferred country for investment form NRIs, Foreign Nationals and Foreign Companies. Now a days through incorporation of Foreign subsidiary is most successful ways for investment by NRIs, Foreign Nationals and Foreign Companies. A subsidiary is a company with shareholding (that is more than 50%) controlled by another company, usually referred to as the parent company or the holding company. In cases where a parent company owns a foreign subsidiary, the subsidiary must follow the laws of the country where it is incorporated and operates. Hence, if a foreign subsidiary is incorporated in India, then it has to follow the applicable laws in India.

The following are some of the India entry strategies for foreign corporates:

Private Limited Company
Incorporation of a private limited company is the easiest and fastest type of India entry strategy for foreign nationals and foreign companies. Foreign direct investment of up to 100% into a private limited company or limited company is allowed under the automatic route, wherein no Central Government permission is required. Hence, incorporation of a private limited company as a wholly-owned subsidiary of a foreign company or joint venture is the cheapest, easiest and fastest entry strategy for foreign corporations into India.

Limited Liability Partnership
Incorporation of a Limited Liability Partnership (LLP) is also an India entry strategy for foreign nationals or foreign citizens as 100% FDI in LLP is now allowed. An LLP, however, cannot have shareholders and must be represented by Partners - thereby making it an ideal choice for investment vehicles and professional firms.

RBI Compliances:
A two-stage reporting procedure is to be followed when a company is raising funds from a foreign investor:
On receipt of funds: The Company has to provide details in an â€œAdvance Reporting Formâ€ to the RBI within 30 days of receiving funds from foreign investor(s). The company has to issue shares within 180 days from the date of receiving funds.
On allotment of shares: The company has to report in specified form (FC-GPR) to the RBI, within 30 days from the date of issue of shares along with: â€“ A Certificate from the Company Secretary certifying that the company has complied with the procedure for issue of shares as laid down under the Foreign Direct Investment (FDI) Scheme, and,
â€“ A certificate from a Chartered Accountant indicating the manner of arriving at the price of the shares issued to the foreign investors. Apart from the above, Annual return on Foreign Liabilities and Assets is required to be submitted reporting all the investments received during the year.