100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic
Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few
industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

Foreign investment in any form is prohibited in businesses engaged or proposes to engage in the following business:
i) The business of chit fund; or
it Nidhi Company; or
iii) Agricultural or plantation activities (excluding floriculture, horticulture, development of seeds, animal husbandry,
pisciculture, cultivation of vegetables, mushrooms, etc., under controlled conditions, services related to the agro & allied
sector and tea plantations): or
iv) Real Estate business, or construction of farm houses (Does not include the development of townships, construction of
residential/commercial premises, roads or bridges); or
v) Trading in Transferable Development Rights (DRs)

This operational hand of a foreign entity in India is registered as a Private Company, which requires at least 2 members subscribing to shares. Hence, register as a wholly owned subsidiary, the parent company would subscribe all shares except one. This one share is by one of the directors to fulfill the requirement.

To register as a foreign company (private company), minimum authorized capital of IN 1 Lakh is prescribed, whereas the constraint of minimum paid-up capital is eliminated as a part of Government's initiative to simplify business registration. However, each shareholder must subscribe at least 1 share for registration and introduce the amount sufficient to run the business.