Foreign companies may set up business in India in any one of subsequent manners while retaining its status like a foreign company:
Liaison Offices – A foreign company can open a liaison office in India to pay attention to its Indian operations, to promote its business interests, to spread awareness of the company’s products as well as to explore further placements. Liaison offices are not allowed to preserve any business or earn any income in India and every one of expenses are become borne by remittances from abroad.
Project Offices – The project office is the ideal method for companies to establish a business presence in India, if the object is to have a presence for minimal period of a period of time. It is essentially a branch office fitted with the limited purpose for executing a specific project. Foreign companies engaged in turnkey construction or installation normally put in a project office for their operations in India.
Branch Offices – Foreign companies involved in manufacturing and trading activities outside Online LLP Registration Procedure India may open branch offices for the purpose of:
oRepresenting the parent company or other foreign companies in various matters in India, like acting as buying and selling agents.
oConducting research, the spot that the parent company is engaged, provided the outcomes of this research are made open to Indian companies
oUndertaking export and import trading games.
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 as much 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 through having an independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a wholly owned subsidiary can be established either under the automatic route, in the event the conditions specified therein are complied with (specific high priority industries) or get an 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, which 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 conditions specified therein are complied with or obtain an approval from the FIPB.
Foreign companies intending to set up any kind of office mentioned previously activities portion of the parent company or foreign trading companies in India for promotion of exports from India in order to be obtain a previous approval of the Reserve Bank by submitting an application in the prescribed form to the Central Office of Reserve Bank. On approval of the cases, permission is granted initially a period of three years, cause to undergo the condition that expenses of such office will be met exclusively out of inward remittances; such offices are not permitted to create any income in Japan.