Nowadays, a lot of foreign companies are interested to start their operations in India and make a grip into one of the world largest and fast-growing market and get access to some of the best human resources in the entire world. A Foreign National (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India (other than entity incorporated in Pakistan or Bangladesh) can make an investment and submit Indian Subsidiary Company registration application inside India by acquiring shares of the company, subject to FDI Policy of India. In addition, among all the director there is a minimum of one Director who is an Indian Director and Indian Resident is required for incorporation of an Indian Company along with an address in India.

Investment and acquisition of equity shares of a Company can be broadly divided into two categories: investment under automatic route and investment under Government approval route. The automatic route requires no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing/intimation with the Reserve Bank of India within 30 days of receipt of investment money in India and filing of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors. Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India. Investment in Indian Subsidiary Company where an automatic route is not available can be made with the approval of the Government under the Government Approved FDI method.