SETTING UP BUSINESS IN INDIA
Due to economic liberalization, starting and setting up and doing business in India has become hassle free. Owing to ongoing digitalisation at Government level, incorporation of a company, in India, has become quicker task. Owing to changing regulatory environment, there are various efficient vehicles available for entry and exit strategy.
A foreign company planning to set up business operations in India has the following TWO options:
- i) As an Indian Entity:
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- Joint Ventures;
- Wholly Owned Subsidiaries; or
- Limited Liability Partnership
- (ii) As a Foreign Entity: Foreign Companies can set up their operations in India through:
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- Liaison Office/Representative Office
- Project Office
- Branch Office
Establishment of Liaison Office/Project Office/Branch Office is regulated under Foreign Exchange Management Act,1999.
A foreign company can commence operations in India by incorporating:
Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.