India Entry Services
Setup Business in IndiaIndia is one of the most favoured destinations for foreign direct investment due to its large pool of skilled and technically trained talent and lower corporate tax rates, even lower than China and most Southeast Asian countries. We assist in setting up your India business.
Setindiabiz is Trusted By Leading Brands
Setup Global business in India
I.ndia 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 you.
Benefits of Establishing a Manufacturing Subsidary in India
The Income Tax in India ranges between 15 to 25%, the lowest in the world.
Easy availability of young & technically skilled workers at relatively lower cost
Poised to become a manufacturing hub due to the Make in India 2.0 initiative
Great & Expanding Urban and Industrial Infrastructure connecting cities to ports
India is one of the world's fastest-growing economies with rule of law.
Largest democracy in the world with a stable uniform industrial policies
Entry Options to Setup Business In India.
India's open economy welcomes global investors, supported by the Make in India 2.0 initiative and Production-Linked Incentive (PLI) schemes. 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 | As Indian Legal Entity |
|---|---|
Key Points
| 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. FEMA Regulations and government policies regulate entry into the Indian market. We offer no-obligation consultation services to foreign companies when they evaluate establishing a subsidiary in India.
Setindiabiz helps foreign companies do India Business.
Foreign companies intending to invest in India may establish a wholly owned subsidiary to manufacture locally and sell 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.
Our services may be classified into three broad stages.
PHASE : 1
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.
PHASE : 2
During 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.
PHASE : 3
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. We take care of the entire process of setting up the Indian subsidiary, from advisory to documentation, filing applications for approval, and further assisting in tax filings and compliance.
| 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
- 1Control based on equity percentage
- 2Benefit from Local Partner Expertise
- 3Preferred for MEGA Projects
- 4Good option where FDI is limited
- 5Benefits of Make in India and Incentives
FDI in JV Company
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 LLPThe 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.
Permitted Activities of Branch Office
Import/Export, Consultancy Services, R&D, Collaboration, Parent Company Representation, IT and Software Development, Technical Support or Foreign Airlines and Shipping Representation
Eligibility for Branch Office
- 1Networth Exceeds USD 100,000/-
- 2Profitable in Past Five Years
- 3Obtain RBI Approval
- 4Register with ROC (FC-1)
Corporate Tax Rate: 35% on the net profit (taxable income) generated in India
Liaison Office Setup In India
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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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
Valid Work Contract
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.
Long term Financial Viability
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.
Most Important Articles on FDI by our research team
- Prohibited Sectors for FDI
- Automatic Vs Government Route
- Sector Wise FDI Limits
- Restriction for FDI from China (PN-3)
- Overseas Attestation or Legalisation
- List of Commonwealth Nations
- Hague Convention – List of Countries
- Indian Subsidiary Vs Branch Office
- Permitted Activities for Branch office
- Permitted Activities for Liaison Office
- Impact of PN-3 on Branch Office Setup
- Police Registration of Branch office
- FDI Reporting
- Compounding of Offences