A foreign company or citizen can set up their operations in India in many ways like Branch Office, Liaison office, project office, etc. All these entities have a status of “Foreign Company” in India.
ADVANTAGE OF COMPANY
India is the fastest growing economies of the world with plenty of business opportunities which make it a preferred business destination for investment form NRIs, Foreign Nationals and Foreign Companies from USA, UK, China, Japan, Australia, UAE, Russia and other countries. There are so many ways by which foreign investment can be done in India and “Incorporation of Foreign Subsidiary” in India is one of the most successful ways to start business in India. In India, Foreign Direct Investments (FDI) can be made through Automatic Route or Government-Approval Route. Foreign Direct Investment of up to 100% is allowed under the automatic route in most activities/sectors in India, By automatic route, it simply implies that the investor is not required to take permission from the government so in automatic route no requirement of any prior regulatory approval for investment in equity shares of an Indian business and only post facto filing and intimation to be filed with the Reserve Bank of India within 30 days of receipt of investment money in India and required to file of prescribed documents and particulars of allotment of shares within 30 days of allotment of shares to foreign investors, Whereas in government-approval route, as the name suggests, there is a need to take permission from government.