An Indian Company may receive foreign equity up to 100% depending on the necessities of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.
Foreign entities can commence their business in India by forming strategic alliances with Indian partners.
Offers opportunity to jointly manage the risks associated with new ventures.
Accessible financial resource of the Indian partners.
Established contacts of the Indian partners which help smoothen the process of setting up of operations.
Established distribution/ marketing set up of the Indian partner.
Foreign entities can also set up wholly owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. For incorporation, a set of application has to be filed with Registrar of Companies (ROC). Once a company has been duly incorporated as an Indian company, it is subject to Indian laws and regulations as appropriate to other domestic Indian companies.
Such offices can undertake any acceptable activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.
Promoting technical /financial collaborations between parent/group companies and companies in India.
Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI).
A company in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank in India for project.
Retail trading activities of any nature is not allowed for a Branch Office in India.
A Branch Office is not allowed to carry out manufacturing or processing activities in India, directly or indirectly.
Profits earned by the Branch Offices are freely repatriable from India, subject to payment of applicable taxes.