Foreign direct investment up to 100% into a private limited company is 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 allowed in India.
Foreign Direct Investment (FDI) into an Indian Private Limited Company: Company is allowed up to 100% in most sectors. Only a very few sectors require prior Central Government approval for investment by a foreign company or foreign national.
The 100% shares of the Indian Company can be held by a combination of Foreign Companies and/or Foreign Nationals. Indian private limited companies require a minimum of two shareholders mandatorily. Hence, one corporate entity or person cannot hold all the shares of an Indian Private Limited Company.
A digital signature is required for filing the incorporation documents and continued compliance documents for a company. Hence, Digital Signatures must be obtained for one or more Director(s) of the company.
The following are the documents and information required for obtaining Digital Signature for a foreign national:
- Foreign national residing in India
o The following documents should be certified by Individual’s Embassy
Resident Permit certificate issued by Assistant Foreigner Regional Registration. Officer, an officer of Bureau of Immigration India.
Passport
Visa
Application form with Photo(attested)
- Foreign national
o The following documents should be certified by the local embassy of the country to which the person belongs:
Passport
Visa
Application form with Photo(attested)
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over 4 years ago