A private limited company in India requires a minimum of two directors, and has from two to fifty shareholders with limited liability. Both directors and shareholders can be other legal entities.
The minimum paid-up capital for a private company is about US$2,500. Formation takes approximately six to eight weeks. The need for such a company to have either 100 percent foreign ownership or whether it requires an Indian investor is dependent upon the scope of the India businesses intended activities. The intended scope of business activities in India needs to be studied first to assess the suitability of the business for being a 100 percent foreign owned entity.
100 percent foreign ownership
On the assumption that the scope of activities does not require Indian investment, then a private
limited company may be established with 100 percent foreign ownership in India. This is known
as the “automatic route” and does not require prior approval.
Please contact Dezan Shira & Associates for more information about company formation in India.
