Starting Business in India
The Investment & Technology Promotion Division has been created in Ministry of External Affairs, Government of India with a focus to facilitate trade and investment.
Under the extant Foreign Direct Investment (FDI) policy. FDI upto 100 percent is allowed under the automatic route in most sectors/activities, except a few, where sectoral equity/entry route restrictions have been retained.
FDI in sectors/activities permitted under automatic route does not require any prior approval either by the Government or RBI. Only regional office of RBI is to be informed within 30 days of receipt of inward remittances.
With some expections, foreigners can invest directly in India, either on their own or as a joint venture.
Entry options in India:
Liaison Office
- It is most basic form of business presence in India. Its permission is granted by RBI.
- It is basically set up to promote exports and imports from/to India.
- Not permitted to earn income. All expenses to be met by inward remittances from the head office.
- However, a return of income is to be filed.
Project Office
- It is set up for the limited purpose of executing a project in India.
- Income earned by project office is taxable in India.
- Normally RBI approved is required.
Branch Office
- It is set up if a foreign company wishes to undertake trading or commercial activities in India.
- Prior approval of RBI is required.
- Branches are permitted to repatriate profits generated in India after complying certain procedures.
- Income earned is taxable in India.
Company Registration in IndiaChartered Accountancy |
FDI Policy in India
