Entity Options for Foreign Direct Investments into India
Private Company
• No minimum capital requirement.
• Requires at least 2 subscribers and 2 Directors, with at least one being a resident of India.
• Limits the number of shareholders to 50.
Public Company
• Requires a minimum of 7 members.
• 3 Directors, including at least one resident Director.
• Combines the flexibility of a partnership with the added advantage of limited liability for its partners.
Branch Office
• Ideal for foreign entities with a profitable track record in the home country for at least 5 years.
• A net worth of at least USD 100,000 (or equivalent).
Liaison Office
• Designed for entities with a profitable track record in the home country for 3 years and a net worth of at least USD 50,000 (or equivalent).
• Initial approval is granted for 3 years, with extensions available.
Project Office (PO)
• Ideal for executing specific projects in India on a temporary basis.
• Formed to leverage local expertise and market knowledge. 4 6 5
Joint Venture (JV)
• Partnership between a foreign company and an Indian company.
• Both partners share ownership, control, and profits.