Advice-Rules 2017-11-14T07:08:01+00:00

A Guide To Establishing Business In India

 100% / 51%  Subsidiary OR Joint Venture Company in India with Indian Partner

Generally a Joint Venture (JV) is a way to enter the Indian market in sectors where in there is a legal requirement for a local partner or there is a % cap on foreign investments. But a foreign company with eligibility for a 100% subsidiary can also go through a Joint Venture (JV). A foreign company can set up their operations in India in any sector, except for a 100% ban on foreign investment like defence, agriculture etc., by a strategic alliance with an Indian partner company. As all the other companies, the Joint ventures are also formed under the Companies Act, 1956. A Joint Venture can exist in with a present Indian company or a new entity with an Indian partner(s). In any of the circumstances, the Indian company, existing or new, has to come forth the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India, with the foreign partner company with a request intended for approving the planned foreign investment in the specific business and sector.

We Offer following Services

  • Advice on Foreign Exchange Law Matters, Corporate Structuring, Rules & Taxation.

  • Managing finances, Tax and compliance management, repatriation of funds to the foreign entity.

  • Finding a Joint Venture partner company for an interested Indian company .

  • Finding a partner company for interested foreign company.

  • Support in acquiring office space, infrastructure, property for building a manufacturing unit.

  • Liaison with the government offices local, state and central if and as required.

RULES TO SET-UP LIAISON (REPRESENTATIVE) OFFICE, PROJECT OFFICE OR BRANCH OF FOREIGN COMPANY IN INDIA 

Apart from the conventional approaches like Joint Ventures and Wholly Owned Subsidiary, a foreign company has few other approaches where in there is not much of an investment but the presence in Indian market can be achieved by a Liaison office or a branch office or a project office.

Liaison

‘Liaison Office’ means a place of business to act as a channel of communication between the Principal place of business

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Branch

If a foreign business desires to commence trading or business-related conduct in India exclusive of establishment of a company.

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Project

‘Project Office’ means a place of business to represent the interests of the foreign company executing a project in India but excludes a Liaison Office.

Liaison

A representation of the parent company in Indian market ,Endorsement of import-export to and from India worldwide.

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Branch

Unlike Liaison office, branch office can carry out imports and exports to and from India to any other country with prior perception of legal authority

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Project

A foreign company can start a project office in India for the period of the contractual project taken up by the Indian company.

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Liaison

An official application on the respective form provided by RBI is to be submitted by the foreign company, Processing3-4 weeks.

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Branch

An official application on the respective form provided by RBI is to be submitted by the foreign company, Processing4-5 weeks.

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Project

Unlike other two offices, a project office does not require the approval from RBI but needs to comply with some conditions.

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Liaison

No business transaction(s) and/or trading activities where in there is any income are not allowed. But the company is liable to file returns as per Income Tax Act u.s 139(1).

Branch

Income earned is taxable in India under the Income Tax Act 1961. The company needs to file in the taxes as complied to any Indian company just with some provisions applicable to a foreign entity.

Project

Income earned is taxable in India under the Income Tax Act 1961. The company needs to file in the taxes as complied to any Indian company just with some provisions applicable to a foreign entity.

Liaison

An application to the regional office of RBI, the office can be closed within 5-6 weeks, when submitted with all the requirements satisfied.

Branch

An application to the central office of RBI, the office can be closed within 6-8 weeks, when submitted with all the requirements satisfied.

Project

If the project office is under RBI approval route, an application to the regional office of RBI, the office can be closed within 5-6 weeks.

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