Indian subsidiaries (Foreign Companies) are governed by the regulations framed under following laws:
a. Companies Act, 2013 or Companies Act, 1956 (if applicable);
b. The Foreign Exchange Management Act, 1999 and;
c. Reserve Bank of India, 1934.
Indian Subsidiaries can be incorporated as a company under the Companies Act, 2013, as a Joint Venture or a Wholly Owned Subsidiary or can be set up as a Liaison Office/Project Office/Branch Office in India, which can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or Other Place of Business) Regulations, 2000 and the same will be governed by the provisions of the Foreign Exchange Management Act, 1999