
	Home Services General Accounting Review & Compilation Account Outsourcing Internal Audit Services Concurrent Audit Services Management Audit Services Operations and Efficiency Audit Special Investigative Audit Due Diligence Review Costing and Accounting System Compilation of Final Accounts Outsourcing Services Entry-Exit Services Entry Options for Foreign Investors Income Taxation Advisory IT Enabled Services Company Law and Secretarial Team Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Query Careers Admin Login Email Login Time Sheet Contact Us

Entry Options for Foreign Investors

A foreign company that is planning to set up business operations in India has the following few options:

Branch Office
Liaison / Representative Office
Project Office
By Forming a Company in India

Branch Office Facilities:

Government of India has allowed foreign companies that are engaged in manufacturing and trading activities abroad to set up Branch Offices in India for the following purposes:
To represent its parent company/ other foreign companies in various matters in India such as acting as buying/selling agents over here.
To conduct research work in those areas where the parent company is engaged.
To undertake export and import trading activities
To promote all possible technical and financial collaborations between the Indian and overseas companies.
Rendering professional or consultancy services.
Rendering services in IT and development of software the country.
Rendering all sort of technical supports to the products supplied by the parent/ Group companies.
Foreign airlines or shipping companies.

Liaison Office Facilities:

To enter the Indian market, the foreign companies set up a Liaison/ Representative office in India. This office is not allowed to undertake any business activity in the country or earn any income. In fact the role of Liaison/ Representative Office is limited to collecting information about the market opportunities and about the prospects of its company’s products.

Any person residing outside India is permitted by the Reserve Bank of India (RBI) to establish a Liaison office in the country and may carry out the following activities:

May represent in India the parent company or group companies.
May conduct research work in those areas in which the parent company or the group companies are engaged.
May promote export and/or from/ to India.
May promote technical or financial collaborations between the parent or group companies in the country.
May act as a communication channel between the parent company and the Indian companies.

Such offices are permitted only for 3 years initially but it may be extended from time to time.

Project Office:

Those foreign companies that are planning to execute specific projects in India are permitted by RBI to set up temporary project/ site offices in the country. Such approval is generally accorded in respect of approved by appropriate authorities or whether the project is financed by the Indian bank/ Financial Institution or else from a multilateral/ bilateral international financial institution.

Site Office Facilities:

By site office it means a sub-office of the project office that is established at the site where the project is being implemented. It does not include a Liaison office. No person resident outside India shall, without prior approval of the Reserve Bank, establish in India a branch or a Liaison office or a project office or any other place of business by whatever name called.

By Incorporating a Company in India through:

Joint Venture (JV), or
A Wholly Owned Subsidiary

Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.

India welcomes Foreign Direct Investment (FDI) in almost all industries. Foreign investors can now freely hold majority of stake in most of the sectors, be it manufacturing, telecom, software, services sector, trading, export-import, etc. Companies that are incorporated or are registered in India are governed by the Companies Act 1956.

India after liberalization has not only opened it's doors to foreign investors but also made investing in India easier for them.

Foreign exchange controls have been made easier on the account of trade.
Companies now can raise funds from overseas securities markets and can enjoy considerable freedom to invest abroad for expanding their global operations.
Foreign investors can remit earnings from their Indian operations.
Foreign trade is by large free from regulations, and tariff levels have come down steeply in the last couple of years.

Exit Option for Foreign Investors:

In view of various amendments under Foreign Exchange & Management Act and Reserve Bank of INDIA regulations, exit route for the foreign Investor is become quite easy to attain the objective of free flow of foreign exchange.