India has emerged as one of the fastest-growing economies globally and continues to attract a significant influx of foreign organizations and investors. Over the past several years, the number of entities establishing operations in India has increased substantially, driven by favourable market potential, expanding consumer demand, and evolving regulatory frameworks. As India positions itself as a preferred destination for global expansion, it is essential for businesses to clearly understand the legal, regulatory, and procedural requirements governing entry, investment, and business establishment through well-planned India entry services.
Choosing the appropriate form of business presence is a critical first step in entering the Indian market. This decision depends on several factors, including the nature of operations, regulatory compliance, tax implications, operational control, and long-term business strategy. A well-structured entry strategy ensures seamless compliance and operational efficiency from the outset.
Our firm specialises in providing comprehensive India Entry advisory and execution services, helping with foreign company setup in India through the following establishment models:
- Subsidiary Company (Private Limited Company)
- Branch Office (BO)
- Liaison Office (LO)
- Project Office (PO)
- Limited Liability Partnership (LLP)
As part of our India market entry consulting, we have prepared a brief comparison between the establishment models for better understanding and clarity.
Comparison – Liaison office (LO) vs Branch office (BO) vs Subsidiary Company
| Feature | Liaison office (LO) | Branch office (BO) | Subsidiary Company (WOS) |
| Type of office | Representative and non-commercial presence | Commercial extension of the foreign company | Separate legal entity incorporated in India |
| Control & Autonomy | Fully controlled by the parent | Fully controlled by the parent | Independent management with parent control as a shareholder |
| Permissible Activities | Limited to liaison/communication functions only (no commercial activities) | Can undertake limited commercial activities as permitted by the RBI(Reserve Bank of India) | Can carry out full-fledged business operations |
| Revenue Generation | Not permitted, only Liaising | Permitted within the FEMA(Foreign Exchange Management Act) permitted activities | Permitted without restriction (subject to Indian laws) |
| Duration | Typically, 3 years (extendable with RBI approval) | Ongoing, as long as permitted by RBI | Perpetual succession (continues until legally wound up) |
| Legal Status | Not an independent legal entity, a representation office | Not an independent legal entity, a representation office | Independent legal entity under the Indian Companies Act |
| Funding Source | Entirely through remittances from the parent company | Earnings in India and/or remittances from the parent company | Equity capital, loans, or internal accruals |
| RBI Approval | Required prior approval from the RBI | Required prior approval from the RBI | Not required, but subject to FEMA compliance for foreign investment |
| Tax rate | No tax as no revenue | Tax is 40% + cess =41.6% to 43.68% | Tax rate is 22% + cess=25.17% |
| Eligibility | The company must have a profit-making track record for the immediately preceding 3 financial years in its home country.
The minimum Net Worth Requirement is USD 50,000 or more. |
Foreign parent must have a profit-making track record for the immediately preceding 5 financial years.
Minimum Net Worth Requirement is USD 100,000 or more |
No such Eligibility criteria |
| Typical Users / Purpose | Market research, liaison, and communication activities | Trading, consultancy, professional or technical services | Full-fledged business operations in India |
| Closure Process | RBI + RoC approval required | RBI + RoC approval required | Liquidation / Strike-off under Companies Act with roC
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Conclusion
With our comprehensive expertise in Indian regulatory frameworks and hands-on execution experience, our India entry services support businesses in selecting the most appropriate entry structure and seamlessly managing the process of establishing operations in India. We focus on ensuring regulatory compliance, operational preparedness, and strategic coherence, enabling organisations to build a stable, compliant, and sustainable presence in the Indian market.
Our services cover the entire lifecycle of market entry, from obtaining regulatory approvals and managing statutory documentation to completing registrations and overseeing post-incorporation compliance. This holistic approach ensures a smooth transition, minimises regulatory risks, and facilitates efficient commencement of business operations in India.
For India entry services, you can contact us at email office@corporatelegi.in, www.thecorporatelegit.com
