100% Owned Subsidiary

There are certain entry strategies for Foreign Investors, and a foreign company about to establish business operations comprises some options.

Any foreign company can initiate operations in India by setting up a company under the Companies Act, 1956 through Joint Ventures or Wholly Owned Subsidiaries.

Depending on the needs of the investor and according to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy, foreign equity in such Indian companies might touch upto 100%.

Operations can be set up by the foreign companies by initiating strategic alliances with Indian partners.

Joint Venture possibly will dole out certain gains for a foreign investor like,

Having an established distribution/ marketing set up of the Indian partner
Having financial source of the Indian partners

100% owned subsidiary can also be initiated by foreign companies in sectors where 100% foreign direct investment is permitted under the FDI policy.