Business Setup in India
Global economic growth has already started its journey of shifting towards developing nations. Being one of the fastest-growing economies in the world, India offers plenty of opportunity to businesses looking to expand their operations in India. For a smooth business setup in India, you may need a physical presence to break into India’s developing business sector. However, only the right kind of presence can make it into the tough business scenario in India.
With a huge market of 1.3 billion people, India is a place of business interest for many across the globe. Registering your business in India as a foreign country and that too in a developing nation like India requires the right professional support. From starting the Liaison Office to branch office and Project office, at VJM GLOBAL you are going to get the right assistance to thrive your business in India.
Our Associations
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Our Associations
From export and import of goods to offering professional or consultancy services, setting up a business in India and opening a branch office associated with a foreign company is allowed to perform some of the basic operations in India. But one needs approval from the RBI and proceed through the provisions described under Foreign Exchange Management Act (FEMA), 1999 to start a branch office in India.
BRANCH OFFICE IN INDIA
The branch office has to have the same name as the parent company abroad.
The parent company looking to set up its branch office in India should have a profitable financial track record for the last 5 years.
The foreign parent company needs to fulfill the financial obligations of the branch office if it doesn’t generate any revenue from its business operations in the country.
As per the latest audited balance sheet of the parent company, the company needs to have a total paid-up capital or net worth value of USD 100,000 or more.
ACTIVITIES BRANCH OFFICE CAN DO
Can offer professional or consultancy service
Can export or import goods from or to IndiaAllowed to carry research work in the sectors where the parent company is engaged
A branch office can represent the parent company in India and act as a buying or selling agent for the company
Branch offices can offer services in IT and Software development operations in India
Can offer technical assistance for the parent company product
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Liaison Office
The primary objective of a Liaison Office of a company in India is to explore the market and investment climate while taking care of the business in a particular zone. Starting a business in India for foreigners including building of Liaison Offices can involve in-depth research for finding out possible market opportunities, source of supply while offering details regarding the parent company to the Indian authority and customer base.
LIAISON OFFICE IN INDIA
A Liaison office is not allowed to execute any commercial operations in India
A Liaison office is not allowed to borrow or lend money
All expenses of a Liaison office has to be meet via inward remittances from the parent company through the associated bank
Liaison Offices are not subject to taxation in India
ATIVITIES LIAISON OFFICE CAN DO
Can act as a representative of the Parent Company or Group of Companies
Promote export or import business in India
Can develop financial or technical collaborations between the Parent company and Indian companies
Act as a communication channel
Project Office
Starting a project office registration in India is the most ideal way for businesses to have a strong presence in India only for a limited time. For project office setup in India along the lines of a project office, the foreign company needs approval from the Reserve Bank of India and register themselves under RoC. Team VJM Global can help set up a Project Office in India for Foreign Companies. After completion of certain formalities under the Companies Act, 2013 you can consider setting up the project office in India.
CONDITION FOR PROJECT OFFICE
The project needs to be directly funded from abroad through inward remittance
A multilateral or bilateral financing agency can also fund the project
In certain cases the project can also be cleared by a proper authority
An Indian company or entity is awarding the contract and grant a Term Loan through a Public Financial Institution or an Indian bank
ACTIVITIES PROJECT OFFICE CAN DO
The project needs to be directly funded from abroad through inward remittance
A multilateral or bilateral financing agency can also fund the project
In certain cases the project can also be cleared by a proper authority
An Indian company or entity is awarding the contract and grant a Term Loan through a Public Financial Institution or an Indian bank
Industries We Serve
Automotive & Transportation
Hospitality
Healthcare
Retail & Wholesale
Manufacturing
Banking & Finance
Insurance
Law
Countries We Serve
India
Germany
Argentina
United States
Italy
Ukraine
United Kingdom
Algeria
Singapore
South Africa
UAE
Malaysia
Switzerland
Japan
France
Nigeria
China
Ethiopia
Our strength lies in the ability to combine in-depth knowledge of cross sections of the industry with the specialized skills of our professionals, spreads across our widespread network.
Testimonials
What our clients say about us
By taking care of our Internal control policies and procedures, VJM Team have made sure that experience is hassle free.
Very professional approach from VJM Team, they got associated with us late in the financial year but were able to conduct an in depth audit and highlight the areas to be addressed within a short span of time. What gives us confidence is that they are available for consultation on any financial matter and are quick to find and implement the resolution
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VJM team is a thoroughly professional chartered accountants equipped with all resources and with deep understanding of GST and other contemporary arenas of corporate consultancy. Have interacted with them for various tax and corporate law related matters and found the interaction quite useful.
We are Repaibays Experts LLP. We are a new company and have just started our business in the field of AC charger installation. We have retained M/S VJM & Associates LLP; Chartered Accountants as CA for our company. They have a fairly large sized office and team and the whole environment seems professional and well organised: something which is very critical in this kind of business We wish VJM very well and am sure they are already a name to reckon with in the field of providing professional CA services !
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I hired VJM Associates and now I can completely focus on my business because I know there’s someone who is managing my accounts properly. Their team (including Khushboo and Jayant) are super supportive and friendly. I highly recommend VJM Associates. Give them a try! You won’t be disappointed
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We give full credit to VJM for streamlining our company’s GST compliance. Their dedicated team of learned professionals have a focussed approach & exceptional clarity when it comes to any questions pertaining to GST. I can say, without their support, it would not have been possible for us to sail past the initial turbulent period when GST was launched. Our best wishes always with them !
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Frequently asked Questions
According to a recent report from the World Bank, the ease of doing business in India has improved quite a lot after a series of reforms. Things are much more comfortable for companies to pay taxes, get construction permits, and proceed with cross border transactions. As per the “Doing Business 2019” report, India features in the list of top 10 most improved economies. From automotive, infrastructure, chemical to pharmaceuticals, textiles and others with a population of 1.36 billion India can offer the most prominent market to perform business proceedings for foreign entities.
Foreign entities looking to set up Liaison Office or Branch Office in India need to apply through Form FNC along with the required documents to the General Manager of Foreign Exchange Department under the Central Office Cell of RBI. However, the application should be processed via an Authorised Dealer Bank.
A foreign company willing to set up a LO in India should have reported a net worth of minimum USD 100,000 or its equivalent as per their latest Audited Balance Sheet. In the case of the Liaison Office, the value should be a minimum of USD 50,000 or equivalent.
The answer is no! If a Liaison Office or a Branch Office needs to have more than one account, they need to get permission from the Reserve Bank of India through its AD Category I bank while maintaining the reason clearly.
While Liaison Offices can’t acquire property, Branch Offices and Project Offices can have a property for their own use. They can proceed with incidental or permitted activities but can’t offer rent or lease on their property.
A Liaison Office does not ensure or assure any income in India since they don’t have the permission to conduct commercial/ industrial or trading activity directly or indirectly. Hence, a company that only has a Liaison Office is not subjected to taxation in India.
Yes, Liaison Offices can upgrade as a Branch Office, all they need to do is re-designate the account as a Branch Office account.
If a foreign company establishes a direct business connection with the Liaison Office, then it can trigger permanent establishment status in India.
Yes, an AD bank can offer approval for the transfer of assets.
No, an Indian subsidiary company abroad can’t open a BO in India within the automatic route.
No, AD banks don’t need the UIN form RBI. They have the authority to offer UIN form for Project Office.
Services for Foreign Companies
Know more about our complete portfolio of services for foreign companies in India
Transfer Pricing
Transfer pricing is all about determining the nature, treatment and taxability of intra-group transactions across several geographies. The transaction is put to test by the determination of arm’s length price of the transaction as per the prescribed transfer pricing methodologies.
FEMA Advisiory
If you are looking for a trustworthy partner or a reliable FEMA advisor, we will be the right fit for you. We keep a world-class pool of professional FEMA consultants to provide you with a complete solution, covering almost all areas of FEMA, bookkeeping and accounting tasks, GST returns etc.
Taxation of Expatriates
We are the market leaders to deliver a higher-quality accounting and reporting solution to our clients more quickly and efficiently in an environment of technological change, digital demonstration, could computing, online bookkeeping and GST filing, and increased regulatory changes and scrutinizes.
Learn MoreWhy Choose Us
Client Centric Approach
Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.
Quick Turnaround
We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.
Team Work
We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds. We believe that this diversification plays a vital role in motivating the team into High Performing Teams.
Open Communications
We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery.
Driving quality in delivery
Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.
Blogs and Articles
RoC Imposed Huge Penalties for Failure to Furnish Copy of Resolution with the RoC in form MGT-14
The Company was incorporated in 2016 and was a Nidhi Company. The Company failed to file the Board Resolution passed for approval of Financial with
ITAT Analysis Principal Purpose Test (PPT) and Allowed the Benefit of the India-Luxembourg Tax Treaty
In the matter of SC Lowy P.I. (LUX) S.A.R.L., Luxembourg Vs ACIT, International Taxation (ITA No.3568/DEL/2023 ) Summary M/s S C Lowy P.I. (LUX)
Points to be taken care of before the end of Financial Year 2024-25, i.e., 31st March 2025| Part-2
With the approach of March 31, 2025, it is essential for businesses to address various compliance requirements to facilitate a seamless transition into the new