India Entry
Article
2/14/20253 min read
Setting Up A Business Operations In India For Foreign Companies
There are a number of options available to a foreign investor wanting to set up business operations in India. Taking into consideration that foreign equity in Indian companies can go up to 100%, subject to equity caps in the respective areas of activities under the policy of Foreign Direct Investment (FDI). From choosing the right legal structure to how to register a business in India, our professionals can help you to incorporate a company in India quickly and efficiently.
As an Indian Company
A foreign company/ investor that wishes to commence its operations in India can begin operations either via (i) Joint Ventures or (ii) a Wholly Owned Subsidiary (subject to 100% FDI permission for the activities being carried out)
As a Foreign Company
India also provides more cost-effective options to a foreign company wanting to test the waters before plunging into full fledge operations:
2.1. Liaison Office/Representative Office:
The liaison office acts as a bridge between a primary place of business i.e. the country of origin and entities in India. No commercial activity can be undertaken in a Liaison Office, and therefore, it does not “earn” in India. Such an office plays a limited role of collecting adequate information about required market opportunities and providing data about the company / its products to the Indian market. However, with RBI (Reserve Bank of India) approvals and other permits, such a representative office can facilitate technical and financial collaborations between a parent company and its Indian partner as well as encourage import & export from/to India.
2.2. Project Office:
To initiate specific projects a foreign entity has the option of setting up a temporary project/site office in India. Such project offices can only carry forward the activities for which they have been permitted to set up. They are limited to execute any activity which does not fall within the scope of the project.
Branch Office
Foreign companies requiring a physical presence to conduct their business without the rigmarole of setting up a separate legal entity, have the option of setting up their Branch Offices in India. These branch offices are not permitted to initiate manufacturing activities on their own however they may reallocate the role to an Indian manufacturer. A branch office of a foreign entity in India is allowed to conduct the following actions in the country:
Import and Export of goods
Rendering professional and consultancy services
Carry forward research work in relation to the business of the parent company
Promoting technical and financial collaborations with Indian and overseas companies on behalf of the parent company
Acting as a buying/selling agent for the parent company in India and representing the parent company in India
Assisting the parent company in the development of software or IT related requirements
Rendering technical support to the parent company with respect to the products or services that the parent company offers
Foreign airlines/shipping company
India: An Attractive Destination For Businesses
Among the emerging markets, India is seen as the ideal destination with ample opportunities available to be capitalized on without compromising on the quality, particularly for opening a business in India. This has attracted major multinational companies around the globe, which are looking for low-cost suitable options for how to set up a business in India and setting up business set up in India.
Establishing a company in India – Overview
The Indian economy is one of the fastest-growing economies in the world with GDP growth of around 7 – 8% and a population of over 1 billion as per World Bank Data (2016). The statistics show that India as of now boasts of a profitable and stable economy and has already entered the league of emerging markets thus making it an attractive option for foreign investors.
Procedure for setting up a company in India
Private Limited Company (PLC);
Public Limited Company (PC); or
Limited Liability Partnership (LLP), informally known as a corporation.
Investment sums that are invested by an investor, in such formats, are limited to the company’s shares.
From a foreign company’s point of view, how to register a business in India through a private limited company in India is one of the highly recommended ways to start a business in India. PLC offers limited liability for its shareholders with certain restrictions placed on the ownership. Streamline business set up in India with our tailored services and get your business up and running smoothly. Recommended ways to start a business in India. PLC offers limited liability for its shareholders with certain restrictions placed on the ownership. Streamline your company establishment in India with our tailored services and get your business up and running smoothly.