Business set up in India
Corporate Leaps works as a one stop solution to set up and run a business in India. We also offer assistance in establishing your business entity by carrying out comprehensive research to understand the prevailing market scenario. We carefully evaluate your competitive landscape and analyze industry trends. With the information collated, we help in creating your strategic investment plans and provide suitable solutions for positioning your business for a strong entry into the Indian market.
India offers a number of opportunities for foreign investors that you can consider while entering this diverse, yet complex, market. Along with choosing the type of company, you also need to select the kind of entity that you wish to set up in India. Here are the entry strategies that you can pursue in order to set up their operations in India.
A liaison office helps you to represent your parent company in India. It works as a communication channel between your company and your vendors and customers. You can participate in conferences, workshops, and technical discussions to carry out marketing and promotional activities for your company’s products. However, a liaison office is barred from any commercial activity, directly or indirectly.
A branch office is the best suited option to undertake activities such as export & import of goods, establishment of manufacturing units, and research and consultancy. You can take care of your marketing & promotions from your branch office, and provide technical support & after sales services to your customers. If your company manufactures products, the branch office can carry out manufacturing in India through subcontracting as well.
You can set up your own office in India to execute short-term or long-term projects in the country. After completion of the project, the project office can remit surplus funds to your parent company. There is no specific permission required; you only have to meet specific guidelines defined by RBI.
You can form a joint venture company or a joint venture limited liability partnership with a private limited company or a public company in India. By entering into a strategic alliance with an Indian associate, you can avail their infrastructure, distribution channels, marketing network as well as financial resources. While you have to abide by the regulations mandated by the Government of India, you will have the flexibility to function independently in the same area of business without an NOC from your Indian counterpart. You can also draw your own contract in order to protect your intellectual property.
Wholly owned subsidiary
Setting up a wholly owned subsidiary enables you to diversify and manage while retaining full legal control of your operations, products, and processes. It is treated as a domestic company and all the Indian compliances and tax structures will be applicable on your company. There will be no restrictions on the activities of your company and the profits can be distributed among shareholders after payment of dividend tax. You have to follow a defined process as drawn in Indian Companies Act, 1956 in order to register as a wholly owned subsidiary in India.
The regulations for foreign ownership of businesses in India are governed by the updated Companies (Amendment) Act 2013. Depending on the nature of the business, you will have to follow a range of varying guidelines to set up a new business in the country. Foreign Direct Investment policy of India integrates a number of documentations and approvals that you have to procure from the concerned Administrative Ministry and/or departments including Ministry of Corporate Affairs (MCA), Reserve Bank of India (RBI) and Registrar of Companies (ROC). Apart from this, in accordance with the advisory under Companies Act and Foreign Exchange Management Act, there are necessary post-formation regulations that your company will have to comply with.
Corporate Leaps has a clear understanding of the bureaucratic regulations, legal requirements as well as cultural aspects that influence consumer behavior. Our specialized team comprises a panel of experts who liaison with concerned agencies and undertake all the activities on your behalf to obtain all the regulatory registrations and documentations.