Indian Subsidiary Companies

Holding Company / Non-Indian Citizen / Foreign Registered Company having following features

  • Controls the composition of the Board of Directors
  • Having Control on more than 51% shares in Subsidiary Company. In Certain Sectors, where the foreign companies can have 100 % shares in Subsidiary companies
  • Should have one Director should have Indian Citizenship
  • The company Investments will be governed by RBI & FDI Policy of India


  • Maintenance of effective control over its subsidiaries.
  • Transaction costs including the cost of negotiating and transferring information and capability to another firm, cost of personnel training, cost of losing the opportunity to having direct sales or getting the full amount of profit and the threat of creating a competitor in markets beyond the purview of the agreement might be avoided.
  • It minimizes the dissemination risk
  • The intellectual property is protected
  • Distinct entity for legal and tax purposes


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