Potential Entrant can come & do business in various forms depending at what stage they are comfortable to initiate the process.
We have listed below the type of corporate or non-corporate entities an entrant can start up with. having advised the best form of structure & assisting with all registrations & approvals required for the same, we assist with sourcing or vendor development while the office/project is coming up – forming Joint Ventures, advising on market prevalent terms & conditions. We negotiate best for our client keeping in mind their interests & long term relationship.
We would help with office/location search & also help with executive search. We will assist with all HR related policies so prevalent in the geography and implement on the company’s behalf. We are also equipped to formulate & manage HR, Admin & Finance manual. This along with regular management reporting with make the entire management process seamless, thereby giving management ample time & bandwidth for business development.
Indian rules & regulations allow following forms of entities to operate & do business in/with India.
Setting up a non-corporate entity
Liaison office: A liaison or a representative office needs approval by Reserve Bank of India. It can undertake liaison activities on its company’s behalf.
Office: Foreign companies have an option to conduct their business in India through their branch office after obtaining a specific approval from Reserve Bank of India.
Project office: If a foreign company is engaged by an Indian company to execute a project in India, it may set up a project office without obtaining approval from Reserve Bank of India subject to prescribed reporting compliances. As applicable in case of a branch office, a project office is treated as an extension of foreign company and is taxed at the rate applicable to foreign companies.
Setting up a corporate entity
Wholly owned subsidiary: Foreign companies are allowed to set up wholly owned subsidiary companies in India in form of private companies, subject to FDI guidelines. Such company has the maximum flexibility to conduct business in India when compared with a liaison or branch office and has following salient features:
• Repatriation of dividends is allowed without approvals
• Funding can be done via equity, debt (foreign as well as local) and internal accruals
• Indian transfer pricing regulations apply
Joint Venture with Indian partner: Foreign companies are allowed to set up joint venture with Indian or foreign companies in India. There are no separate laws for joint ventures in India and laws governing domestics companies apply equally to joint ventures.
Foreign Institutional Investors: FII’s can invest in India in financial markets such as pension funds, mutual funds, investment trusts and asset management companies or their PoA holders. FII’s can invest in all securities in primary and secondary markets including the equity and other instruments of companies which are listed or are to be listed on stock exchanges of India.
