Setting up of Operations in India by foreign company
Operations can be set up in India by foreign companies through:
- Liaison Office/Representative Office
- Project Office
- Indian Subsidiary Company
If you ever encounter such an issue about “How to register a foreign company in India”, contact us and we’ll help you with incorporation of foreign company in India.
Indian booming economy is a very attractive economy for a foreigner owner wishing to expand his business. NRIs, Foreign Nationals and Foreign Companies see a lot of business opportunities in India and therefore they plan to open a subsidiary firm in India. Foreign Owners in this way can target the right market and therefore they find India as the most effective destination for investment.
More Scope for Indian Subsidiaries
The various changes in policies which are being, made also make our nation ‘start-up friendly’ and therefore it is giving a boost to various emerging new start-ups. Many foreign nationals prefer to incorporate Wholly Owned Subsidiary Companies in India.
If a Foreign Owner wants to undertake the business for a very limited purpose and doesn’t want to take any business activity, he can do so by opening a liaison office. Today we can find many Indian Owners as well opening a Foreign Subsidiary of Indian Company. For Example, a foreign owner has a subsidiary company in India, so his subsidiary company needs to follow all the rules and regulations of India.
You can contact us anytime to enquire more about Indian Subsidiary of Foreign Companies Taxation. If you are planning to open an Indian Subsidiary, just keep in mind taxation of foreign companies in India.
Wholly Owned Subsidiary Company
For establishing a subsidiary company, the holding company needs to have at least 50% of total equity capital of the subsidiary company. When the investment in subsidiary firm by the parent firm is 100% then the Subsidiary Company becomes ‘Wholly Owned Subsidiary Company’. Many foreign nationals prefer to incorporate Wholly Owned Subsidiary Companies in India.
Under the Indian Exchange Control Regulations, a Liaison Office is defined as under: Liaison Office in India means a place of business to act as a channel of communication between the Principal place of business or Head Office, by whatever name called and entities in India, but which does not undertake any commercial /trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.
Liaison Office Taxation in India
However liaison office taxation is done at the rate existing in the country where Liaison Office is set up. But a liaison office can only act as a communication channel between head office abroad and its various parties in India. However if a foreign national secures a project by Indian Company he can proceed further by opening a project office.
Activities of Liaison Office
Only liaison activities can be performed by liaison offices that is it can act as a communication channel between head office abroad and its various parties in India. However these offices have a responsibility to check the feasibility of markets in India and test them according to their product. Also adequate information needs to be provided to the interested customers about the business.
Further if you have any que
stions relating to liaison office taxability in India, you can contact us or write a mail to us regarding the same.
Project Office is taken as an extension of the foreign company in India which is why taxation is done on the rates applicable to foreign companies in India. A project office by foreign owner can repatriate the profits freely once the project is completed and after payment of taxes and fulfillment of duties.
However for setting up of operations in India by foreign company in order to expand the business one can open an Indian Subsidiary Company. For any enquiries about Project Office Taxation, India; Project office income tax or project office service tax write to us and our professional team will resolve your query.
Project Office, India
A project office in India can be set up by a foreign owner when he secures a contract by an Indian Company. For opening a Project office in India, the concerned foreign company needs to file Form FNC-10 with the regional office of the Reserve Bank of India. Today, opening of branch office abroad by Indian company can also be seen as more and more Indian companies are going global. Many foreign owners depending on the kind of operations also go for Indian Subsidiary Company.
Incorporation of Project Office
In order to set up a project office by foreign Non-Government Organizations/Non-Profit Organizations/Foreign Government Bodies/Departments, by whatever name called, the entities are required to apply to the Reserve Bank for prior permission to establish an office in India, whether Project Office or otherwise. However this is all under government route.
This Post Has Been Viewed 203 Times
- Business Compliance
- Corporate Compliance
- Income Tax Compliance
- Other Business Compliances
- International Taxation
- Arrival – Departure tax briefings
- Assistance in Internation Tax Litigations
- Certificate of Coverage
- Double Taxation Avoidance Agreement
- Foreign Tax Credits And Treatment of Grossing up Components
- FRRO Registrations and Extensions
- Hypothetical Tax Computations
- Income Tax Compliance
- OCI CARD AND PO CARD
- Salary Structuring and Payoff Processing
- Secondment Agreements
- Tax Equalization Policy and Computations
- Other Services
- Foreign Company
- Transfer Pricing
- Not For Profit Sector
- Start a Business
- Company Formation Outside India
- Foreign Owner
- Indian Owner
- Special Entities
- Starters’ CFO Special
Contact Us Today