There are two types of Strategies from where Foreign Companies can Setup Business in India, Registration of their company or opening up a Branch or a Liaison office which requires Government approval. The fastest type of Strategy for entries for Foreign Companies is the Incorporation of a Private Limited Company. In recent times India has been growing at an Unprecedented Speed which has spiked up interest from many Foreign Countries, and they have been on the run to start and establish their Companies in India which is arguably one of the Largest and Fastest Growing Markets in the World and which allows them to have access to some of the best human resources. Top legal firms in India, Which help for business setup in India.
To break into India’s Fastest Growing emerging Market, the physical presence of the company is very important. Having the right kind of information and Establishing an excellent physical appearance of the company can mean a massive difference between the Success and Loss of the Company in the Indian Market, to prevent this from happening the Foreign companies should consider various factors like Physical connectivity of the company, the State Regulations which are very important and when choosing for an Office in India for their Companies always check the Local Costs.
In India, there is a Shortage of commercial offices at reasonable prices in major cities of the country. To beat these Foreign Companies should start in Business Centres, which are a viable option for Companies wanting to start a physical presence in the Indian Market. The Government is working on making it the best place to do Business. Because of the new latest RBI guidelines, the establishment of Branch offices and Liaison Offices makes it easier for setting up Business in India.
Liaison Office: For Foreign Companies trying to enter the Indian Market setting up a Liaison Office is a common thing. The Foreign companies open the Liaison Offices mostly in the Business Centres if they find trouble finding a right place in India for Office. The role of the Liaison Office is to collect information about the Indian Market and then provide the information about their company, and it’s products to the Indian Markets Customers. The Liaison Office can not take part in any commercial activities, and it gets the remittances to maintain itself in the Indian Market from the leading Foreign Company.
Branch Office: Setting up Branch Offices in India the Foreign Companies can run a thoroughly developed business in India. The Branch Office can carry the same tasks and trading activities as their leading Foreign Company. However, the Branch Office is not allowed to do the manufacturing activities done by the parent company. The Branch Office is very Important for Setting up Business in India.
Applications required for Registration: The forms as are necessary for establishing a company in Indian Market for Foreign Countries is; Memorandum of Associations and Article attested by a Notary Public in the country of the registration, Copy of Certificate of Incorporation, If the original document of the certificate is in a language other than English then it should be changed and converted to English and should be verified by the Consulate or Embassy of the Foreign-Home Country. These applications are very Important for a
Business Setup In India
An Audited Balance Sheet of the Applicant who is trying to establish the company for the last three to five years for the case of the Branch Office or Liaison Office respectively. If there’s a case in which the applicants home country does not demand on the auditing of his accounts, then a Registered Accounts Practitioner showing the net worth should be submitted.
The report of the applicant’s banker from the country in which it is registered, which helps to show the years the applicant has had relations with the bank. One more Important document is the Power of Attorney in favour of the form signatory of form FNC..
Period for Registration: The Time to register a Business Setup In India, a Liaison Office/ Branch Office is mainly 40 to 45 days. For the Business of Construction and Development, the validity period is up to 2 years for the Liaison Office, for other cases in the Business the validity of the Liaison Office is three years, and it should be renewed after three years. In the case of Branch Office mostly the renewal is not required. The registration is essential and is the first step for setting up Business in India.
The Validity of Approval: The Liaison Office/ Branch Office must establish the office within six months soon after the Approval. The given Approval will elapse in case if the Office is not set up within the given time of six months. Prior approval from the RBI will be required for companies looking to extend their given period. Everything should be taken into consideration without making any mistakes for a Business Setup In India.
