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India Entry Strategy

Explore the best ways to start your business in India.
Whether you’re a multinational expanding globally or a startup seeking new markets, India offers a wealth of entry options tailored to your goals. Foreign companies have two options to enter the Indian market: either through a foreign setup or by establishing an Indian company.

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Need help deciding the right entry strategy?

Our firm specializes in guiding international businesses through the India entry process— right from choosing the correct route to full legal and operational setup.

Two Ways to Operate in India

Foreign businesses can either enter India as a foreign company or establish an Indian entity, depending on their business goals and level of operations.

Entry as a Foreign Company

  • Foreign companies looking to establish a presence in India without incorporating a local entity can do so through Liaison Offices, Branch Offices, or Project Offices. These structures allow foreign businesses to explore the Indian market, manage operations, or execute specific projects—each with varying levels of permitted activity and regulatory requirements. This route is ideal for companies seeking a limited presence or early-stage market exploration.

Entry as an Indian Entity

  • Foreign companies can establish a long-term presence in India by setting up an Indian entity such as a Private Limited Company, Limited Liability Partnership (LLP), or entering into a Joint Venture with an Indian partner. These structures offer full operational flexibility, allow commercial activities, and are treated as domestic entities for legal and tax purposes. This route is ideal for companies aiming for full-scale operations, local hiring, and deeper market integration in India.
A. Entry as a Foreign Company
Foreign companies can establish a presence in India without incorporating a local entity through Liaison, Branch, or Project Offices. This option is ideal for limited operations or early-stage market exploration.

📌 Liaison Office (LO) – For Representation

A Liaison Office acts as a bridge between the foreign parent company and Indian stakeholders without engaging in commercial activities.

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  • Can promote business but cannot earn income
  • Operating costs funded through inward remittance
  • Requires RBI approval followed by MCA registration
  • Validity: 3 years (renewable)

Permitted Activities:

  • Representing parent/group company
  • Promoting import/export
  • Facilitating financial & technical collaborations
  • Acting as a communication channel

🏢 Branch Office (BO) – Limited Commercial Activities

A Branch Office is an extension of the foreign parent company and may conduct permitted commercial activities in India.

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  • Not a separate legal entity
  • Income-generating activities allowed (RBI compliant)

Permitted Activities:

  • Export/import of goods
  • Consultancy & professional services
  • Research & development
  • Buying & selling agent
  • IT services & software development
  • Technical support to parent products
  • Foreign airline/shipping operations

🏗 Project Office (PO) – Specific Projects

A Project Office is a temporary setup for executing specific projects in India.

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  • No RBI approval if funded by Indian entity
  • Must close after project completion

Permitted Activities:

  • Only activities related to the specific project contract
B. Entry as an Indian Entity
Foreign companies can establish long-term operations in India by incorporating an Indian entity, enabling full-scale business operations and local integration.

📘 Private Limited Company – Full-Scale Business

The most preferred structure for long-term and scalable operations in India.

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  • Separate legal entity with limited liability
  • Up to 100% foreign ownership allowed
  • Minimum 2 shareholders & 1 resident director
  • Recognized as an Indian company
  • Tax rate: 15%, 22% or 25% + surcharge

Capabilities:

  • Raise capital
  • Own property
  • Employ staff
  • Borrow funds
  • Sue or be sued

More than 90% of foreign businesses choose this route.

🧾 Limited Liability Partnership (LLP)

Suitable for businesses seeking limited compliance and operational flexibility.

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  • Allowed only in 100% FDI eligible sectors
  • Lesser compliance than private companies
  • Profit repatriation allowed
  • Taxed at 30% + surcharge

🤝 Joint Venture (JV)

Ideal for strategic alliances where local expertise or restricted FDI applies.

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  • Indian partner provides market knowledge
  • Corporate tax applicable
  • Profits can be repatriated

We help global businesses make the right start in India.

Why Choose Us?

Our experts assist at every step:

  • Entry strategy evaluation & comparison
  • Setting up LO, BO, PO, Pvt Ltd, LLP, or JV
  • RBI, MCA, and FDI approvals
  • Compliance & regulatory support
  • Partner search & business matchmaking

FAQ

Yes, foreign companies can hold 100% ownership in most sectors under the automatic route, especially by setting up a Private Limited Company. This route is widely preferred due to ease of entry and control.

Generally 4–8 weeks, depending on RBI approval and documentation.

They must file audited financials, submit activity reports, and renew licenses periodically (especially LO every 3 years).

Yes, BOs are taxed as foreign companies under Indian tax law.

Yes, after paying applicable taxes.

A Private Limited Company is the most suitable for long-term operations. It offers independent legal identity, flexibility, and tax advantages.

More than 90% of foreign businesses avail this option because of Tax rate.

 

On average, it takes 15 - 20 working days, provided all documents and approvals are in order.