Ways to make the Foreign Company Registration

As Indian government has gone through the economic reforms and liberalization policy, it has become possible for foreign companies to enter India and can run the business as well. However, before heading to India for starting business operations, it is essential to go through what all formalities you need to follow as rules are being laid down by the government.

Government of India has liberalized the foreign investment policy in a bid to make India indulged into the global economy. FDI investment is permitted under all the categories in business activities excluding:

·         Retail Trading

·         Agriculture

·         Lottery Business

·         Tobacco

·         Gambling & Betting

·         Atomic Energy

As far as company formation in India is concerned, you can choose one of the following ways to get the status of foreign company, as:

Liaison Offices

Foreign company can go to open its liaison office that can be used to run its business operations in India and explore other business opportunities as well. However, liaison offices cannot run its own business and can just watch out the business activities there.

Project Offices

It is considered as the best known way to make the foreign company registration in India. This way of establishing the business office in India helps to run business in India but for the limited time period. It is aimed only to execute any specific project.

Branch Offices

Foreign companies/ firms that are looking ahead to enter India to run its business basically the trading & manufacturing activities can open its branch offices. It is aimed to:

·         Representing the foreign company or parent company for carrying the business activities.

·         Carrying the import and export trading activities.

·         Promoting the financial & technical collaborations with India firms.

Establish Joint Ventures

Companies that are looking to establish its offices in India can also enter via JV's with Indian companies. According to the on-going foreign investment policy, a JV can be established either with help of the automatic route or prior approval from FIPB.

Getting the Status of India Group

If a foreign company is seeking to get the status of Indian group, you can just go to start the business operations in India with the completely owned subsidiary or with the joint venture. It can be registered via this way to get listed with the Indian Companies Act, 1956. This sort of company registration procedure includes the facility of 100% shareholder requirements. 

Companies can exercise the two choices to get the collaboration with the Indian counterpart.

Making Association with Indian Company: A foreign company can make entry in India by getting the association with an Indian company.

It provides some of the advantages to investors abroad as:

·         Get the monetary resource of Indian counterparts

·         Grab opportunities with established marketing system

·         Get benefits of established market base of Indian firms with which they make association.

Completely Owned Subsidiary

Foreign company can go to have the completely owned subsidiary in any business sector you want to enter depends upon the current FDI policy where 100% FDI is allowed.