Procedure for Registration of a Subsidiary Company in India

With reference to our Head Office’s proposal to set up a subsidiary company in India to
manufacture CD-R for sale in Domestic markets and Exports out of India. The subsidiary
company will be a joint venture company between Samsung Corporation, Seoul and any
other foreign company.

In order to examine the procedure for registration of a subsidiary company in India we

have to consider following :

1. As per press note No. 2 ( 2000 series), dated 11 th Feb. 2000, the Government of
India has decided to place all items / activities under the Automatic Route for
Foreign Direct Investment in India except the following :

(i) All proposal that require an industrial licence which includes :

(a) Items requiring an Industrial licence under the Industries
(Development and Regulation ) Act 1951
(b) Foreign Investment being more than 24% in equity capital of
units manufacturing items reserved for small scale industries.
(c) All items which require an industrial licence under the
locational policy notified by the Government under the new
Industrial Policy of 1991.

(ii) All proposals in which the foreign collaborator has a previous

venture/tie-ups ( through investment or technical collaborations or
trademark agreement in the same or allied field ) in India.