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FOREIGN NATIONALS  |  LIAISON OFFICE  |  BRANCH OFFICE  |  PROJECT OFFICE   |  JOINT VENTURE

 
JOINT VENTURE WITH AN INDIAN PARTNER
  
A very common method used by foreign companies entering the Indian market is to work on a joint venture with an Indian company. In the days of the past, only selective foreign investment was invited. There was also a cap on the percentage holding the foreign company could have. In recent years, this has been opened up substantially, and wholly owned foreign subsidiaries are also being allowed liberally.

 
100% Wholly owned subsidiary
The Government has made it easier for foreign entities to start wholly owned subsidiaries. All such cases have to obtain prior approval of the FIPB.
Wholly owned subsidiaries as well as joint ventures have to be registered with the Registrar of Companies (ROC). They then become Indian companies and become subject to Indian laws. They have to file all returns to the ROC and to the Income Tax authorities as other Indian companies do.
A 100% owned company, of course, has the advantage that there is no adjustment to be made with another company culture and style.

Appointing Agent or Distributor
A company interested in only a distribution arrangement with a suitable Indian company can appoint an Agent or a Distributor. The arrangements with the Agent/Distributor can vary depending upon the product/service.

Maintenance and Support Arrangements
Some companies that sell high value items often find it useful to appoint an Indian party who would be responsible for service and maintenance of their products sold into India.
 

   

 

   

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