At Kesari Financial Services, we provide consultancy services to the foreign companies that are interested to invest and commence business in India.
Entry Options for Foreign Investors
A Foreign Company planning to commence business operations in India has the option of setting-up the following type of companies:
- Branch Office
- Liaison / Representative Office
- Project Office
- By forming a Company in India
Branch Office
Government has allowed foreign companies engaged in manufacturing and trading activities abroad to set up Branch Offices in India for the following purposes:
- To represent the parent company
- To conduct research work
- To undertake export and import trading activities
- To promote possible technical and financial collaborations
- Rendering professional or consultancy services.
- Rendering services in Information technology and development of software in India.
- Rendering technical support to the products supplied by the parent/ Group companies.
- Foreign airline/ shipping company
Liaison Office
One of the practices for foreign companies to enter the Indian markets is the setting up of a Liaison/Representative office. A Liaison office is not allowed to undertake any business activity in India and cannot therefore, earn any income in India. The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian Customers.
Project Office
Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. For this a general approval has been given by RBI subject to fulfilment of certain conditions. Such approval is generally accorded in respect of projects approved by appropriate authorities or where the projects are financed by Indian bank/Financial Institution or a multilateral/ bilateral international financial institution.
By Incorporating a Company in India through
- Joint Ventures
- Wholly Owned Subsidiaries
Foreign equity in such Indian companies can be up to 100% depending on the sectoral cap under the Foreign Direct Investment (FDI) policy.