#Do you know how a foreign company is set up in India?
#Do you know the process of setting up a foreign company in India?
#Are you an entrepreneur and setting a foreign company in India?
Then this article will be helpful for you and in the end, you will know how a foreign company is set in India.
India is the second-largest populated country in the world and due to the population there become more business opportunities in India as the business gets more sales. Due to the population factor, most of the foreign companies set up their business and get good profits. There are many ways to set up foreign companies in India and the foreign entrepreneur should find the right way to set up his business in India.
The objectives of the foreign business may be fulfilled by applying an ideal set up of a foreign company that helps to minimize liabilities of the company like taxes and compliance. A company that is formed can be a food production company and hence the company will need to apply for the FSSAI registration in India. As the company will be located in India, it needs to be registered with FSSAI if it is involved in a food business.
Ways to enter the Indian Market:-
There are two ways to set up a foreign company in the local markets India and they are:-
1. For a Foreign Company:-
If the investors are seeking interest in the company then the business forms can be a suitable option for them:-
Project Office:-
Project Offices are made to perform a specific task or any function in the country. If any of the company wins the infrastructure project then it can make a Project Office that works and handles the task of the projects. The projects must be approved by the legal authority or it should be funded by large organizations such as the World Bank.
Branch Office
A Branch Office can be an extension of the foreign company that can carry out certain commercial tasks of import and export and can provide technical support in the country. If the Foreign Company has generated profits from five previous years and has a net worth of $100,000, then this route can be beneficial for the Foreign Company.
Liaison Office
A Liaison Company can be a company that can be used as a Representative agency and represent the parent company of the given Foreign Company in India. The communication can be done by using the Liaison Company from the parent company to the local entities in the country. It can do promotions in India but cannot generate revenue by using this way. If the company is making profits for the last three years and has a net worth of US$50,000 can apply and form a Liaison office in the country.
2. For an Indian Company
The second way for the companies to set up a foreign company can be to start an Indian Entity. This can be done in the following ways mentioned below:-
Wholly Owned Subsidiary
The company can create a Private Limited Company Registration as a Wholly Owned Subsidiary or they can set up an LLP in India but they will need to approve their company from the RBI. The company will need to follow the rules of the company formation and should apply for the Company Registration
Joint Venture:-
In the Joint Venture, a company can do a partnership with the Local Company and leverage its infrastructure to follow the operations. It is a low-risk option that is useful for Foreign Companies.
