Legal Question in Wills and Trusts in India
if a foreign company comes into india with an indian company what is the percentage of company the foreign company can own legally? what act or law is this covered by?
3 Answers from Attorneys
Usually a foreign company comes into India on partnership platform in three different forms: 1) 100% owned Indian Subsidiary company 2) Invest in the equity of Indian Company which is partnering it and 3) Special Purpose Vehicle Company or a Joint Venture Company where both the foreign and Indian partner company are shareholders.
Extent of foreign holding depends entirely on the proposed business.
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it depends on the nature of business. you have to verify what is the investment made, nature of understanding between the parties. what is the FDI permitted to the business intended. based on these issue we can answer the question properly.
the FDI is usually governed by the government policies and the investment would depend upon the nature of business/venture. the list of ventures and the limit of investment can be downloaded through net.
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