GET IN TOUCH : +919673997910 | +918378978686

India Market Entry

Due to economic liberalization, starting and setting up and doing business in India is now hassle-free. Owing to ongoing computerization at various Government Offices, incorporation, formation, registration of a company in India has become an easy process. Owing to the positive change in the regulatory environment, there are various efficient vehicles available for India entry and exit strategy.

What Nyaasa can help you to do?

Company Formation

Establishing office in India

Completing registrations under labour laws

Completing registrations under tax laws

Book keeping, Day-to-day accounting and taxation compliance

Corporate Law compliance for the Indian office

Offshore Development Centre (ODC) & Subsidiaries

Nyaasa provides F&A services to a number of Offshore Development Centres (ODCs) and subsidiaries.
Offshore Development Centres (ODCs) can be a subsidiary or a branch of an overseas corporation.

Country wise breakup

Market Entry Strategy

Finding Partners and Agents

New businesses must address issues of sales channels, distribution and marketing practices, pricing and labeling and protection of intellectual property. Relationships and personal meetings with the potential agents are extremely important. Due diligence is strongly recommended

Geographic Diversity:

Foreign companies, particularly small and medium-sized enterprises, should consider approaching India’s market on a local level. Good localized information is a key to success in such a large and diverse country

Entry as Indian Company

The Indian Entity would be subsidiary of the Parent Company But, in case of certain industries there are restrictions on the holding of Foreign Company.
Reserve Bank of India has prescribed certain sectoral limit for Foreign Inward Remittance (FIR) like in case of defence production; the FIR allowed is 49% only.  With the approval of FIPB (Foreign Inward Promotion Board) the Parent Company can invest more than sectoral limit.

The other option is to have a joint venture with the Indian partner In this case, terms of execution could be decided between the partners .

Entry as a Foreign Company

  • Companies which are incorporated outside India can establish Liaison Office in India with the specific approval of the Reserve Bank
  • Representative Office can act as a channel of communication between Head Office abroad and parties in India
  • It is not allowed to undertake any business activity in India and cannot earn any income in India
  • Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the Head Office outside India
  • The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian customers
  • Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Regional Office of the Reserve Bank under whose jurisdiction the office is set up
    A Liaison Office can undertake the following activities in India:
  • Representing in India the parent company / group companies
  • Promoting export import from / to India
  • Promoting technical / financial collaborations between parent /group companies and companies in India
  • Acting as a communication channel between the parent company and Indian companies

Reserve Bank has granted general permission to foreign companies to establish Project Offices in India, provided they have secured a contract from an Indian company to execute a project in India

Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:

  • Export / Import of goods
  • Rendering professional or consultancy services
  • Carrying out research work, in areas 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 agent in India
  • Rendering services in Information Technology and development of software in India
  • Rendering technical support to the products supplied by parent/group companies
  • Retail trading activities of any nature is not allowed for a Branch Office in India
  • A Branch Office is not allowed to carry out manufacturing, processing activities in India, directly or indirectly