Entry-india


	Home About Us About Us Our Team Services Audit & Compliance Tax Advisory Services Registration & Compliance Transaction Advisory Risk Advisory Industry We Serve Industry Testimonials Gallery Knowledge Bank Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Careers Admin Login Email Login Time Sheet Contact Us

Entry in India

As Foreign Entity

Foreign Investor can commence business in India as a Foreign entity. Type of such set up includes Branch office, liaison office and project office. AS a Foreign company, there are limitation in carrying all business activities and can be set up for a limited purpose. Choice of the type of entity depends on the activity carried out by the foreign entity. Liaison office are permitted only liaising activities i.e. only coordinating or market research on behalf of foreign company and do not have any income in India. Project Offices are setup to monitor projects. Branch offices are permitted to carry out trading activities and manufacturing activities only in limited area.

A Foreign company has to open Branch office / Liaison office / Project office as the case may be with in six month of the approval. A further extention of six months can be given by AD Category-I bank in case reasons of not opening office is beyond control of Foreign Company. Any further extension of time shall require the prior approval of RBI.

Foreign entity after being registered with the RBI ought to get itself registered with the Ministry of Corporate Affairs (MCA). registration with MCA is required with in 30 days of establishment.

*RBI guidelines regarding establishment of LO/BO/PO: https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10398&Mode=0. Further, a resident having PAN to be appointed for receiving notices in India for foreign entity/company

Liaison office

Description

A. Eligibility

A foreign Company having net worth of USD 50000 or its equivalent and track record of making profit during immediately preceding three financial years can open Liaison office. Approval is normally given for 3 years (2 years for NBFCs / entities engaged in construction sector)

In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.

B. Permitted Activities

To represent Foreign Company in India.
Collect info about market opportunity
Promote import/ export to/ from India
Facilitate technical/ financial collaboration

C. Restricted Activities

Can,t undertake any commercial activity
Can,t earn any income in India

D. Tax: Not applicable

E. Exit : Prior approval of AD bank and ROC authorities is required.

Branch Office

Description

A. Eligibility

A foreign Company having net worth of USD 100000 or its equivalent and track record of making profit during immediately preceding five financial years can open branch office.
In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.
Name of the Branch Office must be same as of the Parent Company

B. Permitted Activities

1. Permitted to undertake commercial activities
2. To represent the parent company
3. To carry out export/import of goods,
4. Rendering professional services,
5. Carry out research work, etc. in India.
6. Profit repatriation allowed after payment of applicable taxes

C. Restricted Activities

1. Can't do manufacturing activity other than in SEZ zone with purpose of exporting out of India

D. Tax: 40% + Surcharge

E. Exit : Prior approval of AD bank and ROC authorities is required.

Project Office

Description

A. Eligibility

Reserve Bank has granted general permission to foreign companies to establish Project Office in India, provided they have secured a contract from an Indian company to execute a project in India, and

the project is funded directly by inward remittance from abroad; or
the project is funded by a bilateral or multilateral International Financing Agency; or
the project has been cleared by an appropriate authority; or
a company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the project.

However, if the above criteria are not met, the foreign entity has to approach the Reserve Bank of India, Central Office, for approval.

B. Tax: 40% + tax

C. Exit : Prior approval of AD bank and ROC authorities is required.

Domestic Entity

Wholly owned Subsidiary / Joint Venture

A foreign company can make investment in India through incorporation of wholly owned subsidiary in sectors wherein 100% FDI is permitted. Else, a foreign company can enter into joint venture. Investment under automatic route don't require prior approval of Govt. of India or RBI. Where the principal business of the foreign holding company falls under the sectors where 100 percent FDI is not permissible under the automatic route then applications from such entities require prior approval of the government.

Private Limited Company

A private Ltd. company is a company which has the following characteristics:

shareholders right to transfer shares is restricted.
the number of shareholders is limited to 200; and
an invitation to the public to subscribe to any shares or debentures is prohibited.

Public Limited Company

A public company is defined as a company which is not a private company. The following conditions apply only to a public company:

It must have at least seven shareholders.
A public company is not authorized to start business upon the grant of the certificate of incorporation. In order to be eligible to commence business as a corporation, it must obtain another document called trading certificate.
It must publish a prospectus or file a statement in lieu of a prospectus before it can start transacting business.
A public company is required to have at least three directors.
It must hold statutory meetings and obtain government approval for the appointment of the management.

Tax: Normal as an Indian company

Limited Liability Partnership - FC

Foreign companies can only invest only in those sectors through LLP where 100% FDI is allowed, through the automatic route and there is no FDI-linked performance-related conditions like minimum capitalization etc.

An Indian company, having FDI, will be permitted to make downstream investment in an LLP only if both the company and the LLP are operating in sectors where 100% FDI is allowed, through the automatic route and there are no FDI - linked performance related conditions.

LLPs with FDI will not be eligible to make any downstream investments, which means LLP having FDI, cannot make further investment in LLP or companies engaged in any business, even though 100% FDI is allowed under those sectors.

Tax: Normal as applicable to LLP

Back to Main