Can a foreign company own 100% of an Indian company?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerYes — in most sectors a foreign company can own 100% of an Indian company under the automatic route, with no prior government approval, subject to FEMA reporting. Some sectors have caps or need approval (like defence, media, multi-brand retail), so check your sector first.

100% allowed in most sectors

Automatic route means no prior approval — just FEMA-compliant pricing and FC-GPR reporting.

Restricted sectors

Defence, insurance, media, multi-brand retail and a few others have caps or approval requirements. Confirm your sector’s policy.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.