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How can a Foreign Entity enter into Indian market

Foreign entities can start business in India mainly through two ways u2013 registering as a company in India or establishing a branch, liaison or project office. The easiest and fastest way for a foreign entity to set up business in India is to incorporate a private limited company as a wholly-owned subsidiary. Foreign Direct Investment (FDI) upto 100% is allowed in specified sectors through automatic route wherein no permission is required from the Central Government, for other sectors, it is mandatory to take the government approval.

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How can a Foreign Entity enter into Indian market

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  1. HOW CAN A FOREIGN ENTITY ENTER INTO INDIAN MARKET? Foreign entities can start business in India mainly through two ways – registering as a company in India or establishing a branch, liaison or project office. The easiest and fastest way for a foreign entity to set up business in India is to incorporate a private limited company as a wholly-owned subsidiary. Foreign Direct Investment (FDI) upto 100% is allowed in specified sectors through automatic route wherein no permission is required from the Central Government, for other sectors, it is mandatory to take the government approval. On the other hand, RBI and/or Government approval is required for registration of Branch Office, Project Office or Liaison Office. Also, in case of a branch, project or liaison office the cost and time taken for registration are much higher than the time and cost required in incorporation of private limited company. Furthermore, foreign nationals are not allowed to establish a branch office, liaison office or project office in India.

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