Business structure in India
Incorporating a foreign business
Representative / Liaison Office
Cannot obtain income in India. Can only promote the company’s products and look into future business opportunities.
Represents the parent company as the purchasing/selling agent. Can do business, but obtaining income will mean it has to pay tax in the country. Local law allows the following activities:
- Importing or exporting the parent company’s products.
- Carrying out survey work and providing technical and consultancy services. Production in the country is not allowed except in SEZ (Special Economic Zones).
Makes it easier to perform a specific project:
- Requires the approval of the competent Government authority
Incorporating an Indian business
100% of the capital is owned by the parent company:
- It can carry out and control all production and marketing processes
- Subject to local taxation and law
- Can freely repatriate capital and profits.
A common solution. The partner provides in-depth knowledge about the local market or a well-established network of contacts.