Investor Presentaiton
Market entry options
Incorporated
entities
Joint venture
• Foreign Companies may set up their business in India through strategic alliances with domestic Indian companies. This
may help foreign companies leverage:
Already established businesses with marketing, distribution and other operational support.
-
Available financial resources of the partners
• Joint Ventures
• Wholly Owned
Subsidiaries
• Limited Liability
Partnership
Unincorporated
entities
• Liaison Office/
Representative
Office
• Project Office
• Branch Office
Wholly owned subsidiary company
• Foreign companies also have an option to establish a wholly-owned subsidiary. This can be done in sectors where 100 per
cent foreign direct investment is allowed under the FDI policy
Limited Liability Partnership
Foreign companies can also operate in India through a Limited Liability Partnership in sectors where 100 per cent foreign
direct investment is permitted under the FDI policy and there are no sector specific conditions for receiving foreign invest-
ment
Liaison office/Representative office
•
Liaison offices may be established to promote export/import of goods from or to India and also facilitate any collaboration
between parent company and companies within India. Such offices, however, cannot undertake any commercial activity
directly or indirectly
• Approval for establishing a liaison office in India is granted by Authorised Dealer Banks and in specified cases, by the RBI
Project office
•
Foreign Companies can set up temporary project offices for executing any specific projects. RBI grants a general per-
mission to foreign companies to have project offices, with a few specified conditions. Such offices cannot undertake any
activity apart from project execution
Branch office
•
Such offices can undertake export/import, professional services, any technical or financial collaborations, representing
the parent company in India or offering technical support to the products supplied by the parent company. A branch office
cannot undertake any manufacturing activities
• Approval is granted by Authorised Dealer Banks and in specified cases, by the RBI. There is a general permission to
non-resident companies for establishing branch office in Special Economic Zones (SEZs) for manufacturing and service
activities subject to specified conditions.
1. Entry Strategies For Foreign Investors, Department for Promotion of Industry and Internal Trade; Consolidated FDI Policy 2020, DPIIT
2. RBI Master Direction on Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) or any other place of business in India by foreign entities
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of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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