25
May

What are the Types of Entities that a Foreign Company can Register in India?

Considering India’s consistency in economical and infrastructural growth, it has become one of the biggest investment hubs on a global level. Every year, we witness a considerable rise in Foreign Direct Investment (FDI). India is viewed as a potential source for expansion and investment by multi-national foreign companies that wish to explore overseas business options.

What are Foreign Companies?

Underlying the guidelines of the Companies Act 2013, a foreign company is referred to as any company that functions outside Indian borders. Sounds simple right? However, there’s more to it. A company is called a foreign company only when it has some sort of business relations with India or has business activities going on in India through third-party or digital platforms.

What all options do foreign companies have while registering in India?

If you are planning for foreign company registration in India, we are here at your discretion to assist you. The first and foremost thing that you need to decide upon is whether you want to establish your business in the form of an Indian Company or a foreign one.

Now, what the difference between the two?

An India-based private limited company is consolidated and integrated within the parameters of Indian borders. On the other hand, if you want to establish yourself as a foreign-based company, then you need to enroll your business under the Companies Act, 2013.

How can I establish my business as an Indian Company

  1. Fully possessed Subsidiary: If you want to go for this option, then you need to invest 100% foreign direct investment in some Indian company through a self-regulating role in order to be eligible for being a certified company in the Indian subcontinent.  
  2. Joint Venture: For this, the first thing you require is a regional business ally with whom you want to enter a joint venture and conduct business activities after establishing it. Legally, both the parties need to sign a Memorandum of Understanding (MoU)/Letter of Intent to proceed with things.
  3. Subsidiary Organization: In this case, you can collaborate with an Indian company and take control of 49.9% of its shares. It is a good option for expansion on a temporary basis.

How can I establish my business as a Foreign Company?

  1. Project Office: In this case, you need to get your application for establishing a project officer from the Reserve Bank of India. It basically means that you’re working on some project assigned to you by an Indian company.
  2. Branch Office: If you wish to establish a full-scale business with a long-term plan, you can go for this option. You need to fulfill the financial and monetary criteria and get it approved from RBI.
  3. Liaison Office: If you are here for partnership and collaboration activities, this is the best option you have. An important thing to note here is that all the expenses of your liaison office must be incurred by the head office of your company in your native country.

Conclusion:  

Getting your company registered is a long process and a rather tiring one. Nonetheless, if you seek professional help in working your way out of this process, you can get things done at a much faster rate. We got your back!

Contact us for more details and register your company in India.