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Registration of subsidiary of foreign companies in India or companies with foreign investments requires compliance under the Foreign Exchange Management Act. Foreign Investment is allowed under two route i.e Automatic Route and Approval Route. With the Gradual liberalization of the Indian Economy, most of the sectors are allowed investment under the Automatic Route, except for a few sectors like Defence, Automic Energy, Real Estate where prior approval is required under the Approval Route. Under the automatic route, no prior permission is necessary, once the investment is brought in, there are prescribed filings to be done. Whereas, under the approval route, prior permission of FIPB (Foreign Investment Promotion Board) is necessary, only with prior approval foreign investment is allowed in sectors covered under the approval route.

There should be a minimum of two Directors, one of whom should be a person resident in India ( i.e In India for more than 182 days in the preceding calendar year).

The KYC document of the directors i.e ID Proof and Address Proof are required and incorporation certificate and a Board Resolution (form parent company authorizing the incorporation of Indian Subsidiary) is required.