FDI in India
Branch Office
The provisions regarding setting up Branch Office in India are governed by Foreign Exchange Management (Establishment in India of branch or office or other place of business) Regulations, 2000. Foreign companies are allowed to setup branch office in India after obtaining the requisite approval from the Reserve Bank of India (RBI). Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Authorized Dealer in whose jurisdiction the office is set up. The general permission of RBI permits a Branch Office to conduct the following activities.
Liaision Office
Foreign companies are allowed to establish Liaison Office in India after obtaining prior approval from the Reserve Bank of India (RBI). The RBI grants approval, for one to three years, and it is renewable upon expiry. It is primarily a communication bridge between the foreign company and its customers or potential customers in India. The Liaison Office can also be setup to establish business contacts or gather market intelligence to promote the products or services of the parent company. It cannot engage in revenue generating activities.
Project Office
A foreign corporation, which has secured a contract from an Indian company to execute a project in India, without obtaining prior permission from RBI, is allowed to establish a Project Office in India. RBI has now granted general permission to foreign entities to establish Project Offices subject to.
Indian Subsidiary Company
Foreign companies can set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. The wholly-owned subsidiary may be either of the following business entities.
Virtual Office in India
New technology shifts the focus of business away from the traditional office building and toward a more free-form virtual office system, it’s important that you consider virtual office might be able to help your business to flourish in the twenty-first century.
