Considering booming Indian economy with highest GDP rate in world, many foreign companies entering into India via FDI for manufacturing or Service business. The prime reason for this can be credited to the large population of the nation, buying capacity of the people and low labour cost. The recent Make in India initiative is an attempt to revive and catalyse the foreign investment in the nation. To attract more foreign investors to India, the Government of India has increased Foreign Direct Investment (FDI). There are, however, certain fields where FDI is not allowed as of now.
The way for foreign establishments to come in India and do business was never so easy but thanks to the new liberalization started in 1991 and continuous till date. A foreign company can do business in India in the following ways:
Option 1: Enter as an Indian company – an overseas firm can start working by registering under private or public limited company under Company’s Act, 2013 in either of the ways described below: (a) As a JV - They can form a JV or Joint Venture with an Indian firm in the partnership in the ratio of 51:49 where the maximum ratio is held by an Indian firm or an Indian partner. (b) Wholly owned subsidiary (WOS) – This mode is open in the areas where 100-percent FDI has been allowed by the government. In this mode the foreign company can hold 100 percent ownership with them. In order for companies to register, an application needs to filed with ROC or Registrar of Companies. Once a foreign company completes the due diligence and registers itself with ROC, it becomes subject to all the laws that are applicable to any Indian company.
Option 2: As a foreign company - They can also set up their base in India by either of the following ways: (a) Liaison office - Also known as representative office, they act as connecting link between the head office and its entities in India. They cannot indulge in any commercial activity, their role is to study the market in India and disseminate the information to the parent company. It can only can export or import from or to India and also helps in aiding the technical partnership between the parent company and companies of India. (b) Branch offices –This way is the best for those foreign companies who are in the business of manufacturing and trading. It serves the following purpose:
Time is money. At RLS Associates we aim to ensure that our clients get steady solution to every query and all the compliances are completed on time without any penalty. Promptness and proactiveness in dealing with the work are one of the most appreciated feature of RLS Associates
RLS Associates has a brand value in market since every client enjoys a high level of personal and quality services. Meeting the commitments and timely delivery is core to our working culture.
We serve clients globally with our headquarters in Chennai and Supporting offices at Bangalore, Hyderabad
RLS Associates is a full-fledged law firm having company secretarial services as one of the core division which provides a comprehensive range of services which includes setting up the corporate business entity including ‘Business Set-Up services’ and ‘Regular Compliance services’. The team consists of company secretaries in Delhi who are assisting clients to setup and manage their business across India.
This unique mixture of company secretaries and lawyers has enabled RLS Associates to be recognised as one of the best company secretarial law firms in India. RLS Associates ensures to upkeep all the statutory and regulatory compliances in a time bound manner and to safeguard the clients from any liabilities that may be arising.