Starting Business in India

Starting business in India

Our main job as a chartered accountant firm is to simplify the process of setting up a business in India for NRIs. India is a diversified country and hence it is the most favoured location for doing business. We offer incorporation of different business entities in India. Foreign investors can that plan to set up business operations in India have the following options:

  • Liaison office :

    • This is most suitable for companies who neither have nor see much of a presence in India. Liaison offices are extremely restricted in what they can do and are mainly set up as a communication medium between the Foreign company and its existing customers in India. A Liaison office can't solicit customers nor indulge in any form of promotion. They can't carry out business operations in India. At the cost of repetition, their role is merely to act as a communication medium between the Foreign Company and the existing Indian customers.

    • Because of its limited role, the compliance to be completed by a Liaison Office are the least. The biggest advantage is in income taxes where the provisions of Permanent Establishment and Transfer Pricing may not be much of a concern since the Liaison office does not earn any income as such.

  • Branch Office :

    • This is the next step towards a full fledged branch business presence in India. A branch office in India can execute most of the tasks that a Limited Company can execute except manufacturing. A Branch Office acts as a branch of the foreign company, be its permanent establishment under the tax laws and can earn income from business operations. Recently the RBI has tightened the norms regarding who can open a branch office in India. One of the criteria is that the Foreign Company intending to open a branch office in India should have a track record of at least 5 years of profit making.

  • Project Office :

    • A Project office is like a temporary branch office set up for a particular project.

  • Limited Companies :

    • A Limited company can have a full fledged presence in India. Unlike the previous three entities which are technically called as Foreign Companies, a subsidiary company is called an Indian company. The compliances are also greater than a foreign company.

  • Limited Liability Partnership (LLP)

    • Recently the Government has allowed Foreign Direct Investment through Limited Liability Partnerships (LLPs).

  • Starting Business in india

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