A foreign company planning to set up business operations in India has the following options for entry:
A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through:
For registration and incorporation, set of applications have to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies.
Foreign Companies can set up their operations in India through:
A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India. Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI)
While all the above options exist for any global firm eying Indian market, there is a need for deeper understanding to assess the relevance.
BANK ACCOUNT OPENING: There are a large number of national and global banks to choose from for opening a bank account which is a fairly simple process.
GOING CONCERN: India limited companies are required by law to place on public record their statutory annual accounts, which must often be audited. These must comply with a range of detailed disclosure requirements set out in the Indian Companies Act.
There is a large number of firms/CA in India, who can assist ONE to register or setup a LEGAL ENTITY in India. At Expand in India, as part of our motto to assist global firms Expand in India, we too assist them to setup legal business entity in India in a form which is best suited to their business objective.
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