A foreign company planning to set up business operations in India has the following two alternatives:
AS AN INDIAN COMPANY
A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through:
Joint Ventures.
Wholly Owned Subsidiaries.
Foreign equity in such Indian companies can be up to 100% depending on the necessities of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.
Joint Venture With An Indian Partner
Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners.
Joint Venture may entail the following advantages for a foreign investor:
Accessible financial resource of the Indian partners.
Established contacts of the Indian partners which help smoothen the process of setting up of operations. read more...
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