A foreign company can enter the market of India and set up business operations in India by following:

1. As Indian company
   1. Wholly Owned Subsidiary
   2. Joint Venture
2. As foreign company
   1. Setting up a Liaison Office
   2. Representative Office or a Project Office or
   3. A Branch Office of the foreign company

A foreign company invests 100% FDI in Indian company through automatic route then it becomes Wholly Owned Subsidiary Company of that Foreign Company. Like if Lotus Inc of US owns 100% shares in Lotus Pvt. Ltd of India then Lotus Pvt. Ltd becomes subsidiary company of Lotus Inc.

It is an entity whose whole share capital is in the hand of a foreign corporate body. It can be a private company limited by guarantee or shares or an unlimited liability company.

1. Address proof of the office – latest electricity bill, Rental Agreement

2. For Indian citizen

1. PAN card, Passport size photo
2. Address proof- Bank statement,driving License,postpaid bill
3. Photograph ID proof like passport, Aadhar card or driving license

3. For foreign national

1. Self-certified Passport of Director (Apostille and Notarized)
2. Self-attested Residential Proof (Apostille and Notarized)
3. Personal Mobile Number
4. Personal E-mail ID
5. Digital Signature
6. Passport mandatory

It is an arrangement where two or more parties cooperate to achieve a commercial object or run a business. It may take various forms like Company, LLP, etc. it can be on a long term basis like running for perpetuity or for a limited time based on the object. It can involve an entirely new entity or existing business. Hence it is a very flexible concept.

If any foreign partner or NRI is involved in a joint venture it requires governmental approval either from RBI or FIPB. Approval from RBI has to be taken it is covered under the automatic route. In any other case, approval from FIPB is necessary.

The entity has to select a local partner with whom you want to enter into joint venture then a Memorandum of Understanding or a Letter of Intent is to be signed which will state the basis for the joint venture agreement. All the terms should be discussed thoroughly and negotiated and must be consistent with regional as well as international law. It should address the important matters like Dispute resolution agreements, law Applicable, holding shares, Transfer of shares, Board of Directors Non-Compete, Confidentiality etc.

1. For setting up a Liaison office or representative office in India the criteria has been prescribed by RBI.

• They must have a profit making record in the immediate preceding 3 financial years in the home country and their net value should not be less than USD 50,000.
• A subsidiary of other company which does not satisfy the above condition can submit a letter of comfort from their parent company if the parent company satisfies the above condition.
• All the expenses are to be met entirely through inward remittances of foreign exchange from the Head Office outside India.

1. It requires a specific approval of RBI under FEMA 1999 as well as approval from the Insurance Regulatory and Development Authority (IRDA).
2. The application for establishing the office will be forwarded by the foreign entity to RBI through a designated Authorised Dealer Category–I Bank.
3. required documents should also be filed with application including an English version of the Certificate of Incorporation/Registration or MOA & AOA attested by the Indian Embassy/Notary Public in the Country of Registration, along with the latest Audited Balance Sheet of the applicant entity.
4. The office will be given a Unique Identification Number by RBI. It has to obtain PAN from Income Tax Authorities when setting up the office in India.

It can undertake following activities

• Representing parent company in India
• Promoting import/export in India
• Promoting technical/financial collaborations on parent company behalf
• Coordinating communications between parent/group companies and Indian entity
• It cannot undertake any business activity and cannot earn any income in India

RBI prescribes the setting up of Project office in India by a foreign company

1. A foreign company can establishment office without the prior permission from RBI only when they have secured a contract from an Indian company to execute a project in India and
1. it is funded directly by inward remittance from abroad or
2. it is funded by a bilateral or multilateral International Financing Agency or it has been cleared by an appropriate authority

                                      or

1. A company or entity in India providing the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the project

1. If the above conditions are not met the foreign entity has to approach the RBI for the approval

A Foreign company can conduct business activity in India by opening a branch office with the prior approval of RBI

1. The company should be engaged in manufacturing or trading activities
2. It should have a profit in the immediately preceding five financial years and should have a net worth of not less than USD 100,000 in its home country
3. The subsidiary company of other if does not fulfill the above condition then they can submit a Letter of Comfort from their parent company if parent company fulfills the above condition

It can undertake the following activities:

• Import & Export of goods
• Providing professional or consultancy services
• Carrying out research work in an area which its parent company is engaged
• Promoting technical/financial collaborations on behalf of the parent
• The representing parent company in India and acting as buying/selling agent in India
• Providing IT services and developing software in India
• Providing technical support for products supplied by the parent
• Foreign Airline/ Shipping Company