Doing Business in India

We have vast experience in assisting international businesses in setting up shop in India through an in-depth assessment of legal entity options for entry into India; hand-holding in establishing a presence in India and several other start-up services including identification and regularizing applicable regulatory procedures and advising on the bottlenecks creeping from strategic, governance & management issues; on-going tax & regulatory compliances & Virtual CFO services.

Setting Up Business in India

We follow a well-defined service plan and are supported by professionals holding rich industry experience. This helps our global clients easy access to different entry options in India. These services are rendered as per the rules and regulations set up by the governing bodies. Setting up a company in India includes branch office, project office, liaison/ representative office and company formation through a joint venture or a wholly owned subsidiary. Moreover, we also emphasize on every detail while maintaining close proximity with clients regarding the best legal advice.

The following structures are available for Setting up Business in India:

A Private Limited Company in India / Public Limited Company in India. A foreign company/investor may form a Private/Public Limited company in India which could be a subsidiary of the foreign company.

Set up a company in India as a Joint Venture with an Indian counterpart.

To open a private the company, the following are the requirements:

  • A minimum of two shareholders
  • Minimum of two directors
  • A minimum capital of Rs.1 Lakh

Our services involve the following steps:

  • Identifying & advising the appropriate type of Company – Private, Public of Non Profit or setting-up a Liaison Office, Branch Office or a Project Office of a foreign company.
  • Selection of available name for the proposed the company as per prescribed guidelines.
  • Apply for Directors Identification Number & Digital Signatures.
  • Drafting of Objects and Memorandum and Articles of Association of the company.
  • Stamping, certification & filing of necessary forms and obtaining approvals from the Registrar of Companies.
  • Preparation and filing of Prospectus/Statement in lieu of Prospectus, if applicable.
  • Obtaining Certificate of Commencement of business (in case of public limited)

Liaison Office (LO) in India

As the name suggests the Liaison office is set up by a foreign company in India to carry out Liaison activity for its business. The company cannot generate any revenue for the Indian Liaison office; It has to meet all its expenses of Indian office through remittances from the Head office. The liaison office is not allowed to earn any income in India.

We assist foreign companies in taking approval for forming The liaison office in India from Reserve Bank of India (RBI) and Registrar of Companies. The activities that can be carried out by a LO are as follows:

  • Representing in India the parent company/group companies.
  • Promoting export / import from / to India.
  • Promoting technical/financial collaborations between parent/group companies and companies in India.
  • Acting as a communication channel between the parent company and Indian companies.

Branch Office (BO) in India

We assist foreign companies in taking approval for forming Branch office in India from Reserve Bank of India (RBI) and Registrar of Companies. In order to carry out business in India, any foreign company can set up a branch office under the regulatory control of the Registrar of Companies for the following purposes:

  • Rendering professional or technical consultancy services
  • Export/Import of goods or promotional marketing
  • Promoting technical or financial collaborations between Indian companies and a parent or overseas group company
  • Rendering technical support to the products supplied by the foreign company

Advantages enjoyed by a branch office over a representative office are as follows:

  • Acquire assets such as immovable property
  • Remit its profits after paying the applicable taxes to its parent company
  • Treated as an extension of a foreign company for taxation purpose

Consultancy Services to Foreign Companies

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/ other foreign companies in various matters in India e.g. acting as buying/selling agents in India.
  • To conduct research work in the area in which the parent company is engaged.
  • To undertake export and import trading activities
  • To promote possible technical and financial collaborations between the Indian companies and overseas companies.
  • 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 are the setting up of a Liaison/Representative office. A Liaison the 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.

  • Representing in India the parent company/ group companies
  • To conduct research work in the area in which the parent company is engaged.
  • Promoting export import from/ to India
  • Promoting technical/financial collaborations between parent/group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies
  • ‘A person resident outside India permitted by the Reserve Bank to establish a Liaison office in India may carry out the the following permitted activities’

Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time.

A person resident outside India permitted by the Reserve Bank to establish a Liaison office in India may carry out the following permitted activities.

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 fulfillment 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; or
  • 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.

Start-Up Ventures

We have a rich experience as business advisors and financial consultants to plan and oversee the implementation of business initiation plans. Professional support is provided for new foreign projects in the areas covering the following.

  • Identifying appropriate entry route
  • Formation of Legal Entity in India i.e. Incorporation of a company and preparation of Memorandum and Articles of Association and other legal support.
  • Due diligence reviews
  • Regulatory Approvals
  • Including the Foreign Investment Promotion Board (FIPB), Reserve Bank of India (RBI), Secretariat of Industrial Approval (SIA), Registrar of Companies (ROC) and other concerned authorities
  • Representative office Facility
  • During the ‘in transit period’ support for office infrastructure and manpower are provided to the company.