Practice I
Company Incorporation
Indian subsidiaries (private limited companies), and branch, liaison and project offices of foreign companies, with the FEMA filings that come with them.
- Branch OfficeOpening a branch office of a foreign company in IndiaA branch office lets a foreign company operate in India as itself, without forming a separate Indian company. It needs approval under FEMA, obtained through an authorised dealer bank, and it may only carry on the activities that approval allows. It suits companies with a defined export, consultancy, IT or representation role in India and a strong home-country track record.Read more
- Global Capability CentreSetting up a Global Capability Centre in IndiaA Global Capability Centre is a captive team in India that serves its own group: technology, engineering, finance, analytics or operations. The legal shell is usually a wholly owned subsidiary that bills the parent on a cost-plus basis. What determines whether a GCC runs smoothly is not the incorporation but the tax architecture around it: the transfer pricing model, GST on export of services, payroll and the permanent establishment boundary.Read more
- Indian Subsidiary (Pvt Ltd)Incorporating an Indian subsidiary of a foreign companyA foreign company usually enters India through a private limited company that it owns. Incorporation itself is an online filing with the Ministry of Corporate Affairs, but the work that decides whether the company starts cleanly sits around it: checking the FDI route, preparing foreign documents that Indian authorities accept, bringing in the share capital through banking channels, issuing shares in demat form and reporting the investment to the RBI on time.Read more
- Liaison OfficeSetting up a liaison office of a foreign company in IndiaA liaison office is the lightest formal presence a foreign company can have in India. It can represent the company, promote its products and act as a communication channel, but it cannot earn income in India. It is approved under FEMA through an authorised dealer bank, usually for three years at a time, and is run entirely on money remitted from the head office.Read more
- Project OfficeEstablishing a project office in India for a contractA foreign company that wins a contract in India can set up a project office to execute it, without forming an Indian company. The office exists only for that project and closes when it is complete. In most cases no prior approval is needed if the contract meets the conditions for general permission, but the office must be reported to the AD bank, registered with the ROC and run with proper project accounts.Read more
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