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Description
Entry Options for Foreign Investors A foreign company planning to commence business operations in India has the option of setting-up the following type of companies:
  • Branch Office
  • Liaison / Representative Office
  • Project Office
  • By Forming a Company in India
Branch Office :
Government has allowed foreign companies engaged in manufacturing and trading activities abroad to set up Branch Offices in India for the following purposes:
  • To represent the parent company/ other foreign companies in various matters in India e.g. acting as buying/selling agents in India .
  • To conduct research work in the area in which the parent company is engaged.
  • To undertake export and import trading activities
  • To promote possible technical and financial collaborations between the Indian companies and overseas companies.
  • Rendering professional or consultancy services.
  • 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
Liaison Office:
One of the practices for foreign companies to enter the Indian markets is the setting up of a Liaison/Representative office. A Liaison office is not allowed to undertake any business activity in India and cannot therefore, earn any income in India . The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian Customers.
  • Representing in India the parent company/ group companies
  • To conduct research work in the area in which the parent company is engaged.
  • Promoting export import from/ to India
  • Promoting technical/financial collaborations between parent/group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies
  • 'A person resident outside India permitted by the Reserve Bank to establish a Liaison office in India may carry out the following permitted activities'
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