The Ministry of Corporate Affairs has, vide a circular dated June 25, 2014, clarified that a company incorporated outside India can incorporate a subsidiary in India either as  a public or a private company. For the existing company(ies), being subsidiary of a company  incorporated outside India, registered under the Companies Act, 1956 (Act), either as private  company or a public company by virtue of Section 4(7) of the Act, will continue its status as a  private company or public company, as the case may be, without any change in the incorporation status of such company.