Setting up business in India
G R G & Associates offers credible services in Setting up Business in India. We follow well defined service plan and are supported by professionals holding rich industry experience. This helps our global clients an easy access to different entry options in India. These services are rendered as per the rules and regulations set up by the governing authorities. Setting up a company in India includes branch office, project office, liaison/ representative office and company formation though a joint venture or a wholly owned subsidiary. Moreover, we also emphasize on every detail while maintaining close proximity with clients regarding best legal advice.
WHY INDIA
“In recent years, India has emerged as one of the most attractive destinations not only for investments but also for doing business, evident by its significant jump in Ease of Doing Business rankings.”
India is fastest growing economy in the world. India has huge market to sell the goods and provide the services. India has population of 1.31 billion approx. out of which 60% are in the age group of 15-60 age groups. India has 2nd largest internet users. As per economic times India has an immediate investment opportunity of $1 trillion. India enjoys favourable rating from major credit rating agencies around the globe.
The world focused on India as an advantageous opportunity. It is booming time for India because of the below factors:
- Policies of Government of India are favourable for Trade.
- India has a large pool of Trained and Skilled talented professionals.
- In India now a Company can be incorporated within 7 Days.
- For making Import and Export requires only 3 documents.
- Goods and Services Tax – One Tax One Nation framework has already been adopted by India.
- Online portal for various tax and statutory compliance.
- Department of Commerce, Government of India has launched Indian Trade Portal for relevant information regarding measures which may affect trade.
- An investor Facilitation cell has been created in India to assist and handhold investors during life-cycle of the business.
- India is likely to grow at consistently higher rates and retain its position as one of the fastest growing economies.
- Improved business process and procedures shows new opportunities and create confidence among entrepreneurs as a result of which India moved up in the World Bank’s Doing Business ranking.
BUSINESS STRUCTURE
A foreign company or Nationals planning to set up in business operation in India has the following option:
As An Indian Company
A foreign company or Nationals can start working operation in India by registering itself as Public or Private Limited Company under Companies Act, 2013 through
Joint Venture:
Foreign company can set up their business operations in India by entering in Joint venture with an Indian Company.
Joint Venture may have the following advantages for foreign investors:
- Getting established Infrastructure, Distribution and Marketing channel of Indian Partner.
- Getting Available financial resources of Indian Partner.
- Getting established contacts of the Indian Partner.
Foreign Company or Nationals can also set up an entity in which they have 100% shareholdings. Wholly owned subsidiary permissible in sector where 100% FDI is permitted.
As A Foreign Company
Foreign companies and Nationals can set up their operations in India through:
Representative Office (Liaison Office)
This office acts as a communication channel between the principal place of business or head office and entities in India. It itself can not undertake any commercial activity directly or indirectly. It cannot earn any income in India.
A liaison office assists the parent company in:
- Promoting Import/Export to and from India.
- Promoting technical and financial collaborations with other resident firms.
Approval for establishing a Representative Office in India is granted by Reserve Bank of India.
Project office may remit outside India the surplus of the project on its completion, subject to the prevailing exchange controls.
RBI has now granted general permission to foreign entities to establish project offices subject to specified conditions.
Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:
- Export and import of goods
- Rendering professional or consultancy services
- Carrying out research work, in which the parent company is engaged.
- Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
- Representing the parent company in India and acting as buying/selling agents in India.
- Rendering services in Information Technology and development of software in India.
- Rendering technical support to the products supplied by the parent/ group companies.
- Foreign airline/shipping Company.
