Javascript DHTML Drop Down Menu Powered by
 Services :
Company Setup
Foreign company registration

According to RBI , a company could be treated as a foreign controlled company if

40 per cent or more of its shares are owned in any one
  country outside India,
It is a subsidiary to a parent company in any country
  registered abroad,


25 per cent or more of its shares are owned by a foreign-controlled Indian Joint Stock Company,
  which was not a managing agent, and It is a company managed by a foreign controlled
  managing agency company.

A foreign company of which more than 50% paid up capital is held by Indian citizen or bodies corporate would attract more provisions.

A foreign company planning to set up business operations in India has the two options

I Whether as an Indian company or
II A foreign company.


A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through:

Joint Ventures; or
Wholly Owned Subsidiaries

Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.

Joint Venture With An Indian Partner
  Foreign Companies can set up their operations in India by forging strategic alliances with Indian
Joint Venture may entail the following advantages for a foreign investor:
Established distribution/ marketing set up of the Indian partner
Available financial resource of the Indian partners
Established contacts of the Indian partners which help smoothen the process of setting up of

Wholly Owned Subsidiary Company
  Foreign companies can also set up wholly owned subsidiary in sectors where 100% foreign direct
  investment is permitted under the FDI policy.

 Foreign Companies can set up their operations in India through:
Liaison Office/Representative Office
Project Office
Branch Office

Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

• Liaison Office/ Representative Office

Liaison office acts as a channel of communication between the principal place of business or head office and entities in India. Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India.
Approval for establishing a liaison office in India is granted by Reserve Bank of India (RBI).


Project Office

There are number of foreign companies who have to execute short/long term projects in India. These companies have now been allowed by Reserve Bank of India to set up their office and carry on activities only related to projects being executed by them. There is no specific permission required; they only have to meet specific guidelines defined by RBI. After completion of project, office can remit surplus funds to the company.

Our specialized team can undertake all the activities related to formation of a project office, liaison with concerned agencies and other related services needed during the life cycle of the project.

Branch Office

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:

Export/Import of goods
Rendering professional or consultancy services
Carrying out research work, in which the parent company is engaged.
Promoting technical or financial collaborations between Indian companies and parent or
  overseas group company.
Representing the parent company in India and acting as buying/selling agents in India.
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.

A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
Mob : +91-9022060498 E-mail :
Home - About Us - Services - Clientle - Contact Us - Enquiry
Designed & Hosted by:MID Promoted by:GID