Foreign companies may set up business in India any kind of one of pursuing manners while retaining its status as the foreign company:
Liaison Offices – A foreign company can open a liaison office in India to take good care of its Indian operations, to promote its business interests, to spread awareness belonging to the company’s products and to explore further opportunities. Liaison offices are not allowed to persevere any business or earn any income in India and every one expenses are in order to become borne by remittances from abroad.
Project Offices – The project office is the ideal method for companies to establish a home-based business presence in India, if the object is to have a presence for modest period of time. It is essentially a branch office set up with the limited purpose for executing a specific project. Foreign companies engaged in turnkey construction or installation normally set up a project office for their operations in India.
Branch Offices – Foreign companies engaged in manufacturing and trading activities outside India may open branch offices for on the road of:
oRepresenting the parent company or other foreign companies a number of matters in India, like acting as buying and selling agents.
oConducting research, where the parent company is engaged, provided the outcomes of this research are made to be able to Indian companies
oUndertaking export and import trading ventures.
oPromoting technical and financial collaborations between Indian and foreign companies.
Trading companies – Foreign companies may invest in trading companies engaged primarily in exports. Such trading companies are treated at par with domestic trading companies in accordance with the trade policy.
The RBI accords automatic approval for foreign equity around 51 per cent for setting up trading companies engaged primarily in exports. All other proposals, which do not meet the criteria for automatic approval, can be addressed to the Foreign Investment Promotion Board, i.e. “FIPB”.
Wholly owned subsidiaries – Foreign companies may set up a wholly owned subsidiary, which is definitely an Indian Company a great independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a wholly owned subsidiary can be established either your automatic route, when the conditions specified therein are complied with (specific high priority industries) or get the approval from the FIPB.
Joint venture companies – Foreign companies may set up a joint venture company i.e. monetary collaboration with an Indian business house/company in India, that is an Indian Company with an independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a joint venture can be established either under the automated route, if the physical conditions specified therein are complied with or obtain an approval from the FIPB.
Foreign companies intending to put in any form of office mentioned above activities on behalf of the parent company or foreign trading companies in India for promotion of exports from India for you to obtain a previous approval from the Reserve Bank by submitting an application Online LLP Registration in India the prescribed form to the Central Office of Reserve Bank. On approval of such cases, permission is granted initially a period of 3 years, prone to the condition that expenses of such office can met exclusively out of inward remittances; such offices are not permitted to create any income in In india.