Foreign companies may set up business in India in any one of the next manners while retaining its status as being a foreign company:
Liaison Offices - A foreign company can open a liaison office in India to take good care of its Indian operations, to promote its business interests, to spread awareness within the company's products as well as to explore further chances. Liaison offices are not allowed to embark on any business or earn any income in India and expenses are to be borne by remittances from abroad.
Project Offices - The project office is the ideal method for companies to establish a legitimate income opportunity presence in India, if the object is to possess a presence for a smallish period of time. It is essentially a branch office set up with the Limited Liability Partnerhsip Registration in India Online purpose for executing a specific problem. Foreign companies engaged in turnkey construction or installation normally set-up a project office for their operations in India.
Branch Offices - Foreign companies engaged in manufacturing and trading activities outside India may open branch offices for on the road 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 outcome of this research are made available to Indian companies
oUndertaking export and import trading activity.
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 up to 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 is definitely an Indian Company by independent legal status, distinct from parents foreign company.
Under the current foreign investment policy, a wholly owned subsidiary can be established either underneath the automatic route, in the event 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 put in any regarding office mentioned previously activities component the parent company or foreign trading companies in India for promotion of exports from India for you to obtain an earlier approval for 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 for your period of three years, cause to undergo the condition that expenses of such office will met exclusively out of inward remittances; such offices are not permitted to get any income in Japan.