There are the following options for a non-Indian business to set up operations in India.
1. Branch/Representative Office
If your aim is to open a setup in India only to service the parent company overseas, you can establish an office in India which will function as an overseas office of the parent company. Compliance issues are lower in this method of establishment and the procedures that you need to follow for obtaining approvals are far simpler.
However, there are limitations on what can be done in India under such a set up, funding the office, generating profits and repatriation of such profits overseas.
2. As an Indian Company
If the aim is to be a key market player in India and to service Indian clients, it is advisable to incorporate an Indian company. It can be a wholly owned subsidiary of the parent company with 100% control with the overseas based parent company. All the directors can be foreign nationals and there is no requirement of the presence of any of them in India. However, there are certain requirements of where the annual general meeting can be held and on record keeping and location of documents.
The Indian entity can either be a private limited company or a listed or unlisted public limited company.
3. Resident Representative
An organization is appointed the India representative to oversee the interest of the company. It may involve the following activities to be carried our by the resident representative.
- Selling of Product / Services
- Appointing of Business Partners
- Research
- Regulatory approvals
- Meetings Management
