Consultancy Services To Foreign Companies

Additional Details

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’ Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time. A person resident outside India permitted by the Reserve Bank to establish a Liaison office in India may carry out the following permitted activities: Project Office: Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India . For this a general approval has been given by RBI subject to fulfillment of certain conditions. Such approval is generally accorded in respect of projects approved by appropriate authorities or where the projects are financed by Indian bank/Financial Institution or a multilateral/ bilateral international financial institution. By Incorporating a Company in India through Joint Ventures; or Wholly Owned Subsidiaries Foreign equity in such Indian companies can be up to 100% depending on the sectoral cap under the Foreign Direct Investment (FDI) policy.