How to Start ?

Identify the Structure

Domestic Indian Company

Extension of foreign Company

Extension of foreign Company

  • Joint Venture
  • Wholly owned Subsidiary
  • Liaison Office
  • Branch Office
  • Project Office
  • Limited Liability Partnership

Activities Permitted

SUBSIDIARY / JOINT Venture

Any Activity permitted subject to the sectoral Cap

LIAISON OFFICE
LO can not undertake any commercial activity and acts as a channel of communication between the principal place of business or head office and entities in India. Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between the parent company and companies in India. It cannot earn any income in India

BRANCH OFFICE
BO can be set up by foreign companies. The permitted activities include export/import of goods; rendering professional or consultancy services; carrying out research work, in which the parent company is engaged; promoting technical or financial collaborations between Indian companies and parent or overseas group company; representing the parent company in India and acting as buying/selling agents in India; rendering services in information technology and development of software in India; rendering technical support to the products supplied by the parent/ group companies and foreign airline/shipping company.

There is a general permission to non-resident companies for establishing BO in the Special Economic Zones (SEZs) to undertake manufacturing and service activities subject to:

      • BOs are functioning in those sectors where 100% FDI is permitted
      • BOs comply with Chapter XXII of the Companies Act, 2013
      • BOs function on a stand-alone basis

PROJECT OFFICEPO can be set up to execute specific projects in India and cannot undertake or carry on any activity other than the activity relating and incidental to the execution of the project.

SECTORAL CAPS FOR FDI

In India FDI is permitted as per the FDI Policy and government has defined a sectoral cap for each sector and it may vary as per country. Please send us Query to check on a particular Sectoral cap.

COMMON MISTAKES

    • Identification of Correct Structure.
    • Appointment of Foreign Individual as shareholder.
    • Appointing only one Foreigner as director.
    • Incorporating with Minimum Authorised Capital.
    • Share Stamping
    • BOs comply with Chapter XXII of the Companies Act, 2013

 

  • BOs function on a stand-alone basis