Setup Global business in India
India is a place to manufacture and sell globally due to its political stability and rebound democracy. It embraces global innovation and adopts open systems and universal practices. The government's focus on Make in India, Ease of doing business and lower tax rates makes India one of the most attractive destinations for setting up global companies in India. Our experienced team of professionals stands ready and prepared to assist clients with devising entry strategies in India, whether as a Wholly Owned Subsidiary, Branch Office, liaison or Project Office and to obtain all necessary regulatory approvals.
India is Uniquely Position for Global Expansion
Income Tax is Only 15% World’s Best Tax Rate
Easy Availability of Skilled Work Force
Production Linked Incentives for Manufacturing in India
Excellent Urban & Industrial Infrastructure
One of the World-Fasted Growing Economies
India is the largest democracy with a prevailing rule of law
Entry Options to Setup Business In India.
India is an open economy that invites investors from around the world. Indeed, the Make in India movement went well, with a conducive corporate tax structure of just 15% on manufacturing activities. The legal framework in India allows foreign investors to operate as a foreign corporate entity by setting up a Liaison, Branch, or Project office in India with prior approval from RBI or by setting up an independent corporate legal structure such as a wholly owned subsidiary, JV or LLP. Find all the options in the table below.
| As a Foreign Company (With Permission of RBI and Central Govt) | By setting up an Indian Legal Entity (registration before ROC) |
|---|---|
Key Points
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Confused?
Indian laws may seem overwhelming and confusing. Worry not; our specialists on FDI and FEMA are here to answer your questions. Entry into the Indian market is regulated by FEMA Regulations and government policies. We offer no-obligation consultation services to foreign companies when they evaluate establishing a subsidiary in India.
Setindiabiz is an experienced team that helps foreign companies do India Business.
Foreign companies intending to invest in India may establish a wholly owned subsidiary for manufacturing locally and selling globally. They can establish a branch office as a sales office or a representative office for their R&D activities. In this process, they generally require support and guidance from experts. The experienced team at setindiabiz is equipped to handle Incorporation, Accounting, Taxation, IPR and Legal matters.
Schedule Callback!Before Set-up
Advice on India entry strategies, modes of entry, and foreign exchange regulations. Preliminary guidance on tax laws and registration obligations. Initial insights into employment regulations and business legislation.
Set-up
We provide end-to-end service for forming an Indian entity, GST Registration, IEC, and company secretarial compliance. We also assist in opening a local bank and obtaining all necessary regulatory approvals.
After Set-up
We offer payroll, bookkeeping, financial reporting, and annual company compliance services. Our expertise includes compliance, local labour laws, expatriate tax issues, corporate tax advisory, indirect tax, and transfer pricing.
Wholly Owned Subsidiary Company
A wholly owned subsidiary (WOS) company in India means that the foreign company holds 100% shares in the Indian company and controls the composition of the Board of Directors. WOS is the most suitable option for a foreign corporation that intends to do a full-scale business in India, most preferably manufacturing or distributing its products or intending to hire employees in India.
| Important Points | Permitted FDI |
|---|---|
| Most sectors are open to 100% FDI. Prior approval from the government of India is not required. However, an intimation is filed with the RBI in FC-GPR form after a subsidiary company is incorporated |
Joint Venture Company
Joint ventures are formal collaborations based on equity investment in India, where the foreign company and the Indian partner company incorporate a Private Limited or a Public limited company under the Companies Act 2013. The FDI policy applies to foreign investment, and joint ventures are subject to reporting requirements like a wholly owned subsidiary. The other option could be to invest in an existing company. We support our services in both scenarios.
| Important Points | FDI in JV Company |
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| The FDI policy and press note will apply to the investment made by foreign partner(s) to the JV. There is no need to do equity valuation in a new JV Incorporation. However, the FDI in an existing business would be subject to pricing norms. |
Limited Liability Partnership (LLP)
FDI in a limited liability partnership (LLP) is permitted only in sectors where 100% FDI is allowed through an automatic route and where there are no changes concerning FDI-linked performance conditions. In other words, it implies that in sectors where partial FDI is allowed or where government permission is a must, an LLP is not a suitable form of business to enter the Indian market. Setindiabiz helps incorporate LLP with foreign capital by filing an application with the ROC.
| Important Points | FDI in LLP |
|---|---|
| The FDI is permitted only in 100% open sectors. The reporting & pricing norms are similar to that of a company. After incorporation, the foreign investment in LLP is reported by filing FC-GPR with the RBI. |
Branch Office Establishment in India
The foreign company engaged in manufacturing, trading, or services can set up a Branch Office in India with the approval of the Reserve Bank of India in compliance with the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 (Notification No. FEMA 22(R)/ 2016-RB). There are only eight types of business activities permitted at the branch office. Retail trading and manufacturing (except within designated Special Economic Zones) are prohibited in a Branch Office. Team setindiabiz is here to help.
| Eligibility for Branch Office | Permitted Activities of Branch Office |
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| Import/Export, Consultancy Services, R&D, Collaboration, Parent Company Representation, IT and Software Development, Technical Support or Foreign Airlines and Shipping Representation https://www.setindiabiz.com/permitted-activities-of-branch-office-india |
Corporate Tax Rate: 35% on the net profit (taxable income) generated in India
Liaison Office
A liaison office, also known as a foreign company's representative office, is established in India to conduct market research or pre-launch studies so that the foreign company can legally hire employees in India. A liaison office can not engage in commercial, trading, or industrial activities and is barred from generating revenue in India. All expenses are to be met by the head office. The liaison office can be set up after obtaining RBI approval, which is granted for three years and can be further renewed.
| Eligibility for Liaison Office | Permitted Activities of Liaison Office |
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Corporate Tax Rate: 35% on the net profit (taxable income) generated in India
Establishment of Project Office
The project office is a temporary office of a foreign company best suited for executing any short-term government or private projects in India. RBI grants permission to establish the project office after the foreign corporation has secured a contract to execute a particular project in India. Setindiabiz is a leading India entry facilitator and provides end-to-end assistance while you set up a project office.For the establishment of the project office, the RBI has given general permission, which AD can exercise and accordingly, the project offices may be approved subject to fulfilment of the following conditions
- The foreign company has secured a valid contract to execute in any part of India from the central government, state government, a public sector enterprise, any government department, or a private sector company or enterprise.
- That the project office or the cost shall be financed directly from the inward remittances from the head office/parent company or shall be financed by a bilateral or multilateral international financing agency or has secured a long-term loan
If the applicant satisfies all the prescribed conditions, the foreign applicant may approach RBI for specific approval for the establishment of the project office. We help obtain all necessary approvals for establishing a project office in India.