Indian Subsidiary

An Indian Subsidiary is a business entity incorporated in India but controlled by a foreign parent company. Control typically means the foreign company holds over 50% of the Indian entity’s total share capital or controls the composition of its board of directors. This structure allows foreign businesses to enter and operate within the Indian market while benefiting from limited liability, protecting the parent company’s assets. Indian subsidiaries are treated as domestic companies under Indian law, subject to the Companies Act, 2013, and various other regulations like FEMA (Foreign Exchange Management Act) for foreign investment. This setup provides operational flexibility to tailor strategies to local market conditions and access to India’s vast consumer base and skilled workforce. It is a popular route for foreign businesses seeking a strong, long-term presence in India.

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