Indian Subsidiary of MNC - clarification by MCA

MCA has clarified something which was not required but has been done to clear the doubts in the mind of foreign Investor

This confusion might have developed due to wrong interterpretaion of the law by Foreign Media

Misunderstanding in the mind of foreign Investors  

1. Foreign Company setting up subsidiary in India will have to do business must be "Public Limited" Company format

2. Existing subsidiary of MNC in Private Company format will have to be converted to Public Limited Company  

Clarification by MCA

1. Foreign MNC can set up business in Private Limited format & existing subsidiary in Private Limited mode will continue to do business as they are doing now


http://www.mca.gov.in/Ministry/pdf/General_Circular_23_2014.pdf