Launch your business in India
With India being one of the fastest growing economies, the country possesses strong purchasing power with huge customer base and promising destination for investors to incorporate business in India.
Two options for entering India
A foreign company has two options for entering India: register as an Indian company or remain a foreign company. If the company intends to operate commercially, then it has to register as an Indian company.
1. Register as an Indian company
If you intend to operate commercially in India then you have the following options for India entry:
- As a wholly owned subsidiary in India where 100% Foreign Direct Investment (FDI) is allowed
- As a joint venture in partnership with an Indian business entity where 100% FDI is not allowed
2. Register as a foreign company
If you don’t intend to operate commercially in India then you have the following options for India entry:
- Liaison office
- Representative or a project office
- Branch office
2.1 Liaison office
A liaison office means a place of business to act as a channel of communication between the principal place of business or head office and the entity in India but which does not undertake any commercial/trading/industrial activity and maintains itself out of inward remittances received from abroad. A liaison office may be permitted to carry on the following activities:
- Representing the parent company/group companies in India
- Promoting export/import from or to India
- Promoting technical/financial collaboration between parent/group companies and companies in India
- Acting as a communication channel between the parent company and Indian companies
2.2 Project office
A foreign company can establish a project office without the prior permission from Reserve Bank Of India (RBI) only when they have secured a contract from an Indian company to execute a project in India and any of the following conditions are fulfilled:
- The project is funded directly by inward remittance from abroad
- The project is funded by a bilateral or multilateral International Financing Agency
- The project has been cleared by an appropriate authority
- A company or entity in India providing the contract has been granted Term loan by a Public Financial Institution or a bank in India for the project
If none of the above conditions are satisfied, then prior approval from Reserve Bank of India (RBI) has to be obtained before setting up the project office.
2.3 Branch office
A foreign company/person resident outside India may be permitted by Reserve Bank of India (RBI) to undertake the following activities:
- Import/export of goods
- Rendering professional or consultancy services
- Carrying out research work in which the parent company is engaged
- Promoting technical or financial collaborations between Indian companies and parent or overseas group company
- Representing the parent company in India and acting as buying/selling agent in India
- Rendering services in information technology and development of software in India
- Rendering technical support to the products supplied by the parent/group companies; and foreign airline/shipping company
Process of registering a company in India
- Selection the form of company: as a foreign Company or as an Indian Company
- GST Registration
- Providing legal registered communication address
- Opening a bank account
- Tax and regulatory return filing
- Accounting and bookkeeping services required for effectively discharging annual company accounting and tax obligations
- Sector based licenses and permissions
- All foreign exchange compliance and requisite approvals
Process of opening a business in India
- Developing a business plan
- Selection of best office space and space for setting up of manufacturing unit
- Advice on selection on real estate
- Recruitment of personnel
- Setting up of payroll system
- Promotion of your business in India
Disclaimer
Catlett, Inc. is not a law firm and is not offering legal advice. You should only rely on an attorney for legal advice. Our team can always assist you in getting legal advice for choosing best option for you to enter India.
FAQ:
- Reserve the company name (provide at least 6 different names for ensuring for approval of the name of the private ltd company)
- Provide India office lease agreement
- Sign company setup forms
- Obtain business license
It can be difficult to understand the intricacies of doing business in another country - it will require knowledge of Indian laws and rules as applicable, free time and attentiveness in reading documents. The consultant - in this case, a representative of Catlett, Inc. - does all this for you.
Our team in India has already provided the above services for other businesses. We have the necessary know-how for doing business in India.
Would you like to register a company or open a business in India?
Reach out to us. Our consultant will contact you to schedule a free video consultation.
Contact details:
U.S. Head Office:
Catlett, Inc.
The Tower Building
323 Center Street, Suite 1800
Little Rock, AR 72201, USA
Mo-Fr 8:00 am - 5:00 pm (UTC-5)
Tel: +1.501.372.2121
Fax: +1.501.421.0045
consult@catlett.net
Do you have any questions?
Feel free to reach out and we will address your request in time!
