Company Registration in India by MNC and NRIs
Foreign Company Registration in India
Over the years, the Government of India has eased the restrictions for making investment in India by foreign companies, foreign citizens and Non Resident Indians. This has resulted in more and more foreign company registration in India.
Further, the government has framed the policies for extending the Ease of Doing Business in India and made necessary changes in this regard across the board whether it is FEMA regulations, FDI guidelines or RBI policies. Various states have also provided one window clearance system to reduce the time taken for various approvals before commencement of business operations. These measures have facilitated improving the ranking of India in ease of doing business. Further, this has encouraged more and more companies opting for company registration in India.
a) By way of purchasing shares of an Indian company or
b) By making investment in the capital of an existing Indian company or
c) By new business set up in India.
Various options of foreign company registration in India
1) Subsidiary company registration in India- When foreign company held more than 50% shares of an Indian company (whether existing or new company), the Indian company becomes subsidiary of the foreign company in India. When foreign company holds 100% shares of an Indian company, the Indian company becomes wholly owned subsidiary of the foreign company.
2) Second option is LLP registration in India.
3) Third option is Joint Venture registration in India
As per FDI guidelines given by RBI, investment in private limited as well as public limited companies can be done under automatic route in most of the sectors. Further, in case of LLPs, FDI are allowed under the automatic route only in those sectors or activities which allow 100% FDI through the automatic route.
In case of public limited company, minimum 7 investors are required and there is no limit for maximum number of shareholders. In case of private limited company, minimum 2 shareholders and maximum 200 shareholders can be appointed.
Thus, form the foregoing, it may be inferred that there are many options of foreign company registration in India by foreign enterprises as well as NRIs. Further, one of the most popular and feasible option is in the form of subsidiary company registration in India.