India is amongst the fastest-growing economies globally, with substantial human potential and a large market comprising over 1.2 billion people. The opportunities present in India have attracted a large amount of Foreign Direct Investment (FDI) into the country. Each year, the FDI inflow increases due to many foreign businesses establishing their operations in India.
 

However, foreign companies have to follow the rules and guidelines laid down by the Companies Act, 2013, the Companies (Registration of Foreign Companies) Rules, 2014, RBI guidelines, and FEMA to establish a company in India.

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Pramod Kumar & Co. can help you establish your presence in India which best fits your requirements and needs. We can establish your corporation in India to help you attain maximum tax benefits and corporate ease.
 

Foreign Company Under the Companies Act, 2013
 

Sec 2(42) of the Companies Act, 2013 (‘Act’) defines a foreign company as a body corporate or company that is incorporated outside India, but-
 

1. Has a business place in India, whether through an agent or by itself, either physically or through electronic mode

2. Conducts business activity in India in any other manner
    

What are the Ways in Which Foreign companies can be Registered in India?
 

A foreign national can establish a foreign company as a private limited company in India. Establishing a private limited company is the fastest way to set up a company in India. FDI of up to 100% into a private limited company is permitted under the FDI policy under the automatic route. A foreign national can incorporate a private limited company as a joint venture or a wholly-owned subsidiary. 
 

Joint venture
 

A foreign entity will elect a local partner in India with whom it wishes to enter into a joint venture to operate its business in India. A Letter of Intent or Memorandum of Understanding (MOU) is signed between the foreign entity and the local partner, which will state the joint venture agreement basis. The joint venture agreement contains all the business terms, and it must be consistent with regional and international law. 
 

Wholly-owned subsidiary
 

A foreign national/company can invest 100% FDI in an Indian company through the automatic route for the purpose of registering foreign in India. When a foreign entity invests 100% FDI in an Indian company, the Indian company will become a wholly-owned subsidiary of the foreign entity/company.

A foreign company can register a liaison office, project office or branch office in India to carry on its operations in India. However, opening these offices requires RBI or government approval. 
 

Liaison office
 

A foreign company can establish a liaison office for all liaison activities in India. The parent company (foreign company) will meet all the expenses of a liaison office through foreign remittance.