Response to this Question

    Appropriate structure for your proposed activities in India are determined by various factors like -

    Proposed Activity - The foreign direct investment (FDI) in India is governed by The Reserve Bank of India (RBI) directives imposing sectoral caps on various activities. For example, activities like agriculture, defense supplies etc are prohibited. Activities to the like of real estate development etc are permitted subject to restrictions. So one has to obtain clear advise on RBI directives to choose an appropriate structure for India.
    Local Partner - If foreign company wishes to explore Indian market with the help of a local partner, it has no choice but to form a Joint venture company.
    Nature of Transactions - If foreign company wishes to engage India only for representation purpose, it can opt for either a liaison office (no commercial operations allowed) and if it wishes to engage in commercial transactions of purchase and sale, maintenance contracts etc, it can opt for a branch office subject to obtaining prior RBI permission.

Date : 29-Nov-2019 6:21:41 PM

Other questions in FOREIGN EXCHANGE (FEMA) category