Counsel

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:

1. 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)

2. 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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