CA CS Prabhjot Kaur

Foreign Company Setup in India

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Foreign Company Setup in India

Foreign Company Setup in India

India is one of the fastest-growing economies in the world, offering vast opportunities for foreign companies to expand their operations. Setting up a business in India allows foreign investors to tap into a large consumer base, skilled workforce, and favorable government policies. However, establishing a foreign company in India involves strategic planning, legal procedures, and regulatory compliance under Indian laws.

we provide end-to-end assistance to foreign companies for business setup, regulatory approvals, tax planning, and post-incorporation compliance.

Ways a Foreign Company Can Enter India

Foreign companies can establish their presence in India through any of the following structures:

Wholly Owned Subsidiary (WOS)

A company incorporated in India with 100% shareholding held by a foreign entity. Ideal for complete ownership and control.

Joint Venture (JV) with Indian Partner

A partnership between a foreign company and an Indian entity to collaborate and share ownership.

Liaison Office (LO)

Acts as a communication channel between the foreign company and Indian customers. Cannot undertake commercial or trading activities.

Branch Office (BO)

Set up to carry out permitted business activities in India such as export/import, R&D, consulting, etc.

Project Office (PO)

Established for executing specific projects in India, especially in construction or infrastructure sectors.

Key Advantages of Setting Up a Company in India

  • ✅ Access to a huge and growing consumer market

  • ✅ Skilled and cost-effective workforce

  • ✅ Government initiatives like Make in India, Startup India, PLI schemes

  • ✅ Liberalized FDI norms in most sectors

  • ✅ Tax benefits and incentives in certain sectors and states

  • ✅ Strategic location for serving Asian and Middle Eastern markets

Documents Required (Indicative)

📄 From Foreign Entity:

  • Certificate of Incorporation

  • Memorandum & Articles of Association