foreign company formation

01

Wholly-Owned Subsidiaries (WOS)

Maximum Control, Maximum Scale. For companies committed to the Indian market, a WOS offers the most robust framework. It operates as a separate Indian legal entity, providing 100% ownership and protecting the global parent from unlimited local liabilities.

  • Full Operational Freedom: Permitted to engage in manufacturing, trading, and services without the restrictive “prohibited lists” faced by branch offices.

  • Tax Advantages: Enjoy domestic corporate tax rates (approx. 22–25%), which are significantly lower than the 40% rate applied to foreign branch offices.

  • Capital Flexibility: Easier access to local funding, government incentives, and the ability to hold 100% equity in most sectors under the Automatic Route.

02

Joint Ventures (JV)

Leveraging Local Synergy for Faster Entry. If your strategy relies on immediate access to established distribution networks or local manufacturing expertise, a Joint Venture is the ideal vehicle.

  • Shared Risk & Capital: Reduce your initial CAPEX by pooling resources with an Indian partner.

  • Market Intelligence: Benefit from a partner’s “boots-on-the-ground” knowledge of Indian consumer behavior and regulatory navigation.

  • Strategic Drafting: We go beyond registration to draft robust Shareholder Agreements (SHA) that protect your Intellectual Property and define clear exit strategies.

03

Liaison Offices (LO)

Your Listening Post in India. A Liaison Office is the lowest-risk way to explore the Indian market. It acts as a communication channel between the foreign headquarters and local stakeholders.

    • Market Research & Networking: Ideal for brand promotion, information gathering, and networking without immediate commercial commitment.

    • Zero Tax Liability: Since an LO cannot generate revenue, it is not subject to income tax in India (expenses are met entirely by the parent company).

    • Quick Setup: A streamlined route for firms that want a physical presence before launching full-scale operations.

04

Branch Offices (BO)

An Extension of Your Global Brand. For companies with a specific, limited scope of work—such as professional consultancy or software development—a Branch Office provides a direct link to the parent company.

  • Revenue Generation: Unlike a Liaison Office, a BO can engage in commercial activities such as import/export and rendering professional services.

  • Direct Parent Control: Operates as an extension of the foreign firm, allowing for direct management without a separate board of directors.

  • Repatriation: Profits can be freely remitted back to the parent company, subject to applicable foreign company taxes.

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