Forms of Business Presence

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Forms of Business Presence

While incorporation of a company (private company, listed public company, etc.) is one of the most common form of establishing presence in India, other common forms of business presence include limited liability partnerships, project offices, branch offices and liaison offices.

  • Local Subsidiary/ JV Company
    • Subject to FDI regulations;
    • Funding can be via debt/equity/internal accruals
    • No restrictions on repatriation of dividend
  • Limited Liability Partnership
    • Liability of partners restricted to their agreed contribution
    • Foreign investment permitted in sectors where 100% FDI is allowed under the automatic route (with no sector-specific conditions for receiving FDI).
  • Liaison Office
    • Subject to FEMA regulations
    • Permitted to act as a communication channel, spread awareness of foreign company's products and explore new opportunities
  • Branch Office
    • Subject to FEMA regulations
    • Permitted to undertake specific business activities, such as trading, consultancy services, research work, technical support services, etc.
  • Project Office
    • Subject to FEMA regulations
    • A foreign corporation having secured a contract from an Indian company may set-up a project office provided that the same is funded by inward remittances from abroad

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