India Entry Services Setup Business in India
India is one of the most favoured destinations for foreign direct investment due to its large pool of skilled and technically trained talent and lower corporate tax rates, even lower than those in China and most Southeast Asian countries. We assist in setting up your India business.
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Set up a Global business in India
India is a place to manufacture and sell globally due to its political stability and robust democracy. It embraces global innovation and adopts open systems and universal practices. The government’s focus on Make in India, Ease of Doing Business and lower tax rates makes India one of the most attractive destinations for setting up global companies. Our experienced team of professionals stands ready and prepared to assist you.
Benefits of Establishing a Manufacturing Subsidary in India
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The Income Tax in India ranges between 15 to 25%, the lowest in the world. |  |
Easy availability of young & technically skilled workers at relatively lower cost |
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Poised to become a manufacturing hub due to the Make in India 2.0 initiative |  |
Great & Expanding Urban and Industrial Infrastructure connecting cities to ports |
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India is one of the world’s fastest-growing economies with the rule of law. |  |
The largest democracy in the world, with a stable, uniform industrial policy |
Entry Options to Set Up Business In India.
India’s open economy welcomes global investors, supported by the Make in India 2.0 initiative and Production-Linked Incentive (PLI) schemes. The legal framework in India allows foreign investors to operate as a foreign corporate entity by setting up a Liaison, Branch, or Project office in India with prior approval from RBI or by setting up an independent corporate legal structure such as a wholly owned subsidiary, JV or LLP. Find all the options in the table below.
| As a Foreign Company | As an Indian Legal Entity |
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Key Points
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Key Points
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Confused?
Indian laws may seem overwhelming and confusing. Worry not; our specialists on FDI and FEMA are here to answer your questions. FEMA Regulations and government policies regulate entry into the Indian market. We offer no-obligation consultation services to foreign companies when they evaluate establishing a subsidiary in India.
Setindiabiz helps foreign companies do business in India
Foreign companies intending to invest in India may establish a wholly owned subsidiary to manufacture locally and sell globally. They can establish a branch office as a sales office or a representative office for their R&D activities. In this process, they generally require support and guidance from experts. The experienced team at setindiabiz is equipped to handle Incorporation, Accounting, Taxation, IPR and Legal matters.
Our services may be classified into three broad stages
| PHASE: 1 Before Set-up |
PHASE: 2 During Set-up |
PHASE: 3 After Set-up |
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| Advice on India entry strategies, modes of entry, and foreign exchange regulations. Preliminary guidance on tax laws and registration obligations. Initial insights into employment regulations and business legislation. | We provide end-to-end service for forming an Indian entity, GST Registration, IEC, and company secretarial compliance. We also assist in opening a local bank and obtaining all necessary regulatory approvals. | We offer payroll, bookkeeping, financial reporting, and annual company compliance services. Our expertise includes compliance, local labour laws, expatriate tax issues, corporate tax advisory, indirect tax, and transfer pricing. |
Wholly Owned Subsidiary Company
A wholly owned subsidiary (WOS) company in India means that the foreign company holds 100% shares in the Indian company and controls the composition of the Board of Directors. WOS is the most suitable option for a foreign corporation that intends to do a full-scale business in India, most preferably manufacturing or distributing its products or intending to hire employees in India. We take care of the entire process of setting up the Indian subsidiary, from advisory to documentation, filing applications for approval, and further assisting in tax filings and compliance.
| Important Points | Permitted FDI |
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Most sectors are open to 100% FDI. Prior approval from the government of India is not required. However, an intimation is filed with the RBI in FC-GPR form after a subsidiary company is incorporated. |
Joint Venture Company
Joint ventures are formal collaborations based on equity investment in India, where the foreign company and the Indian partner company incorporate a Private Limited or a Public Limited company under the Companies Act 2013. The FDI policy applies to foreign investment, and joint ventures are subject to reporting requirements like a wholly owned subsidiary. The other option could be to invest in an existing company. We support our services in both scenarios.
| Important Points | FDI in JV Company |
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The FDI policy and press note will apply to the investment made by foreign partner(s) to the JV. There is no need to do equity valuation in a new JV Incorporation. However, the FDI in an existing business would be subject to pricing norms. |
Limited Liability Partnership (LLP)
FDI in a limited liability partnership (LLP) is permitted only in sectors where 100% FDI is allowed through an automatic route and where there are no changes concerning FDI-linked performance conditions. In other words, it implies that in sectors where partial FDI is allowed or where government permission is a must, an LLP is not a suitable form of business to enter the Indian market. Setindiabiz helps incorporate an LLP with foreign capital by filing an application with the ROC.
| Important Points | FDI in LLP |
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The FDI is permitted only in 100% open sectors. The reporting & pricing norms are similar to those of a company. After incorporation, the foreign investment in LLP is reported by filing FC-GPR with the RBI. |
Branch Office Establishment in India
The foreign company engaged in manufacturing, trading, or services can set up a Branch Office in India with the approval of the Reserve Bank of India in compliance with the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 (Notification No. FEMA 22(R)/ 2016-RB). There are only eight types of business activities permitted at the branch office. Retail trading and manufacturing (except within designated Special Economic Zones) are prohibited in a Branch Office. Team setindiabiz is here to help.
| Permitted Activities of the Branch Office | Eligibility for Branch Office |
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| Import/Export, Consultancy Services, R&D, Collaboration, Parent Company Representation, IT and Software Development, Technical Support or Foreign Airlines and Shipping Representation |
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Corporate Tax Rate: 35% on the net profit (taxable income) generated in India
Liaison Office Setup In India
A liaison office, also known as a foreign company’s representative office, is established in India to conduct market research or pre-launch studies so that the foreign company can legally hire employees in India. A liaison office can not engage in commercial, trading, or industrial activities and is barred from generating revenue in India. All expenses are to be met by the head office. The liaison office can be set up after obtaining RBI approval, which is granted for three years and can be further renewed.
| Eligibility for Liaison Office | Permitted Activities of Liaison Office |
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Establishment of Project Office
The project office is a temporary office of a foreign company, best suited for executing any short-term government or private projects in India. RBI grants permission to establish the project office after the foreign corporation has secured a contract to execute a particular project in India. Setindiabiz is a leading India entry facilitator and provides end-to-end assistance while you set up a project office. For the establishment of the project office, the RBI has given general permission, which AD can exercise, and accordingly, the project offices may be approved subject to the fulfilment of the following conditions
| Valid Work Contract | Long-term Financial Viability |
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| The foreign company has secured a valid contract to execute in any part of India from the central government, state government, a public sector enterprise, any government department, or a private sector company or enterprise. | That the project office or the cost shall be financed directly from the inward remittances from the head office/parent company, or shall be financed by a bilateral or multilateral international financing agency, or has secured a long-term loan |
If the applicant satisfies all the prescribed conditions, the foreign applicant may approach the RBI for specific approval for the establishment of the project office. We help obtain all necessary approvals for establishing a project office in India.
Most Important Articles on FDI by our research team
Frequently Asked Questions
India presents a compelling opportunity for businesses, highlighted by its rapidly growing retail market, projected to reach an estimated $1.1 trillion by 2027 and $2 trillion by 2032. India has one of the most talented and trained talent pools. Most sectors are open for FDI under automatic routes requiring no government approval. Therefore, India stands as an attractive destination for FDI.
Entering the Indian market is a great opportunity for businesses looking to expand due to several factors. The retail market is booming and is expected to hit $2 trillion by 2032, fueled by rising incomes and urban growth. The Indian government supports foreign direct investment with simplified regulations, allowing 100% FDI in single-brand retail and enabling quick market entry. Further government initiatives like “Make in India” and production-linked incentives (PLI) promote India as a business-friendly environment, making it an attractive destination for companies aiming to grow their global presence and tap into its vast potential.
When we talk about Indian entry services, we’re considering the various ways to support individuals and businesses that want to make their mark in the Indian market. These services cover a lot of ground—think market research, make sure you comply with the law, understand regulations, and get your operations up and running.
A foreign entity can enter India by establishing a Wholly Owned Subsidiary, Joint Venture, Limited Liability Partnership (LLP), Branch Office, Liaison Office, or Project Office, depending on the business objectives and scope of operations.
Establishing a Liaison Office or Branch Office is typically the simplest approach. However, a Wholly Owned Subsidiary or LLP provides greater flexibility and legal stability for long-term and broader business activities.
Typically, a subsidiary can be incorporated in about 15-20 business days, while setting up a branch or liaison office generally takes 30-45 days due to additional RBI approval.
There is no mandatory minimum capital for establishing a private limited subsidiary. However, branch offices typically need to demonstrate financial strength, usually requiring a minimum net worth of USD 100,000 or more.
Yes, a foreign national can become a director in an Indian subsidiary company. However, at least one director must be a resident of India (residing for at least 182 days in the preceding financial year).
Not necessarily. Most business sectors allow foreign direct investment (FDI) through the automatic route, requiring no prior government approval. However, sectors like defence, telecommunications, broadcasting, and multi-brand retail require government approval.
A Branch Office can conduct business activities and earn revenue, whereas a Liaison Office acts purely as a communication channel and cannot undertake commercial activities or earn income in India.
Foreign subsidiaries are taxed at standard Indian corporate tax rates, typically around 25.17% (inclusive of cess and surcharge). Branch offices are taxed at a higher rate (approx. 43.68%), as they are considered foreign entities directly operating in India.
Yes, after paying applicable Indian taxes, profits made by subsidiaries can generally be repatriated abroad as dividends, subject to compliance with Foreign Exchange Management Act (FEMA) guidelines.
Yes, foreign entities (subsidiaries, LLPs, branches, liaisons, and project offices) must comply with annual regulatory filings, including financial audits, income tax returns, and ROC and RBI compliances.
Generally, the documents required include notarised copies of the parent company’s incorporation documents, board resolutions, identity proofs of directors or representatives, proof of registered office in India, and bank statements reflecting financial soundness.
India offers a compelling business destination with a large consumer market, stable economic policies, competitive corporate taxes, availability of skilled workforce, and strong government initiatives like “Make in India” to support foreign investors
Yes, foreign companies can hold 100% shares in a wholly owned subsidiary in most sectors under the automatic route without requiring prior approval.
An LLP in India provides flexibility, reduced compliance costs, limited liability, and tax advantages, making it an attractive option for small to mid-sized businesses entering India.
Setindiabiz offers comprehensive assistance, including consultation, incorporation services, RBI approvals, annual compliance management, taxation advice, and liaison support, making the process smooth and efficient for foreign investors.
