Foreign companies may set up business in India in any one of pursuing manners while retaining its status as the foreign company:
Liaison Offices - A foreign company can open a liaison office in India to look after its Indian operations, to promote its business interests, to spread awareness with the company's products this particular explore further open positions. Liaison offices are not allowed to stick with it any business or earn any income in India and expenses are for you to become borne by remittances from abroad.
Project Offices - The project office is the ideal method for companies to establish a home-based business presence in India, if the object is to possess a presence for a limited period of schedule. It is essentially a branch office set up with the limited purpose for executing a specific upgrade. Foreign companies engaged Online LLP Incorporation in India turnkey construction or installation normally established a project office for their operations in India.
Branch Offices - Foreign companies involved in manufacturing and trading activities outside India may open branch offices for medicine of:
oRepresenting the parent company or other foreign companies a number of matters in India, like acting as buying and selling agents.
oConducting research, where the parent company is engaged, provided the final results of this research are made available to Indian companies
oUndertaking export and import trading activities.
oPromoting technical and financial collaborations between Indian and foreign companies.
Trading companies - Foreign companies may invest in trading companies engaged primarily in exports. Such trading companies are treated at par with domestic trading companies in accordance with the trade policy.
The RBI accords automatic approval for foreign equity around 51 per cent for setting up trading companies engaged primarily in exports. All other proposals, which do not meet the criteria for automatic approval, can be addressed to the Foreign Investment Promotion Board, i.e. "FIPB".
Wholly owned subsidiaries - Foreign companies may set up a wholly owned subsidiary, which can be an Indian Company by independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a wholly owned subsidiary can be established either underneath the automatic route, if the conditions specified therein are complied with (specific high priority industries) or obtain an approval from the FIPB.
Joint venture companies - Foreign companies may set up a joint venture company i.e. economical collaboration with an Indian business house/company in India, and an Indian Company with an independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a joint venture can be established either under the automated route, if the stipulations specified therein are complied with or obtain an approval from the FIPB.
Foreign companies intending to build any regarding office already mentioned activities on the part of the parent company or foreign trading companies in India for promotion of exports from India to be able to obtain a previous approval of this Reserve Bank by submitting an application in the prescribed form to the Central Office of Reserve Bank. On approval of the cases, permission is granted initially a period of 3 years, foreclosures the condition that expenses of such office in order to met exclusively out of inward remittances; such offices are not permitted to generate any income in Of india.