2020-10-12  A comprehensive guide for foreigners doing business in India
By Arpita Dutta, Legal Consultant, Louis International Patent Office

A foreign company needs local legal person and he/she need not be a shareholder. Indian Laws allow foreigner to keep 100% ownership by subscribing shares of Indian company. A foreign Company can become a Parent company of the Indian Subsidiary holding 100% shares.  
A company must incorporate under the Companies Act 2013 of India in the following ways:

As an Indian company
Private Limited Company

100% FDI, under the automatic route in many industries
Incorporate as owned subsidiary or joint venture
Minimum 2 Directors and 2-200 shareholders
One of Director must be both an Indian Citizen and Indian Resident. But he/she might not be a shareholder of the Company.
Approval from appropriate individual Govt Authorities
Limited Liability Partnership (LLP) Partnership based on an agreement
Minimum two partners required, who shall be individuals and one of them must be a person resident in India
Partner’s liability up to agreed contribution
Required approval by RBI
As a Foreign entity
Branch Office 
Limited to the activity as parent company is engaged
Required approval by RBI
Liaison Office cannot undertake any commercial activity
Required approval by RBI
Project Office Can execute only specific projects as approved
Required approval by RBI