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Business Set up in India

1.Business Set up in India

Capture the market of 1.4 billion people in India and reach out USD 05 trillion economy in next 5 years.

The global economic growth has already started its journey of shifting towards developing nations. Being one of the fastest-growing economies in the world, India offers plenty of opportunity to businesses looking to expand their operations in India. A physical existence is what you need to break into India’s developing business sector. However, the right kind of presence can be the make or break

With a huge market of 1.4 billion people, India is a place of business interest for many across the globe. Establishing your business in foreign and that too in a developing nation like India requires the right professional support. From starting the Liaison Office to branch office and Project office, at Preach Law & Co. you are going to get the right assistance to thrive your business in India

2. Liaison Office in India

The initial stage of exploring India.

The primary objective of a Liaison Office of a company in India is to explore the market and investment climate while taking care of the business in a particular zone. In India, Liason Offices play an instrumental role in finding out possible market opportunities, source of supply while offering details regarding the parent company to the Indian authority and customer base.

Condition of Liaison Office in India:

  • A Liaison office is not allowed to execute any commercial operations in India
  • A Liaison office is not allowed to borrow or lend money
  • All expenses of a Liaison office has to be meet via inward remittances from the parent company through the associated bank
  • Liaison Offices are not subject to taxation in India

Activities Liaison Office Can Do:

  • Can act as a representative of the Parent Company or Group of Companies
  • Promote export or import business in India
  • Can develop financial or technical collaborations between the Parent company and Indian companies
  • Act as a communication channel

3. Branch office in India

Ready to invest in India, open up a branch office.

From export and import of goods to offering professional or consultancy services the branch office of a foreign company is allowed to perform some of basic operations in India. But one needs approval from the RBI and proceed through the provisions described under Foreign Exchange Management Act (FEMA), 1999 to start a branch office in India.

Condition of Branch Office in India:

  • The branch office has to have the same name as the parent company abroad.
  • The parent company looking to set up its branch office in India should have a profitable financial track record for the last 5 years.
  • The foreign parent company needs to fulfill the financial obligations of the branch office if it doesn’t generate any revenue from its business operations in the country.
  • As per the latest audited balance sheet of the parent company, the company needs to have a total paid-up capital or net worth value of USD 100,000 or more.

Activities Branch Office Can Do

  • Can offer professional or consultancy service
  • Can export or import goods from or to India
  • Allowed to carry research work in the sectors where the parent company is engaged
  • A branch office can represent the parent company in India and act as a buying or selling agent for the company
  • Branch offices can offer services in IT and Software development operations in India
  • Can offer technical assistance for the parent company product Brand

4. Project Office in India

Seamlessly expand into new markets

Establishing a project office is the most ideal method for businesses willing to have a presence in India only for a limited time. To set up a project office the foreign company needs an approval from the Reserve Bank of India and register themselves under RoC. Apart from that there are certain formalities under the Companies Act, 2013 that you need to achieve to start a project office.

Condition for Project Office in India:

  • The project needs to be directly funded from abroad through inward remittance
  • A multilateral or bilateral financing agency can also fund the project
  • In certain cases the project can also be cleared by a proper authority
  • An Indian company or entity is awarding the contract and grant a Term Loan through a Public Financial Institution or an Indian bank

Activities Project Office Can Do

  • The project needs to be directly funded from abroad through inward remittance
  • A multilateral or bilateral financing agency can also fund the project
  • In certain cases the project can also be cleared by a proper authority
  • An Indian company or entity is awarding the contract and grant a Term Loan through a Public Financial Institution or an Indian bank

5. Entry Strategy

The right presence in India

Market Entry Strategy: As India rapidly emerges into a major market for global businesses, most firms need to explore the Indian business landscape to tap the growing market, or to seek resources. At Preach Law & Co. develop a strategy for Global Clients to enter the Indian market by leveraging our extensive knowledge of the Indian business environment.

Industry Structure and Landscape: We provide an in-depth analysis of the targeted industry segment and the capabilities required to serve them. Industry landscaping includes a detailed study of the industry structure (current market size, potential market size, and demand supply dynamics), study of the end-user application segments, competitors (current and potential, market share) marketing and promotion strategies, emerging market trends etc.

The track record should demonstrate a disciplined approach and the ability to adhere to the articulated strategy. The money raised should be clearly justified by the magnitude of the perceived investment opportunity and the extent of the manager’s resources. The investment strategy should be attractive in the context of the wider economic landscape, which will impact the market opportunity.

Global Expansion Strategy: Through our alliance around the world, we can help you develop and implement global strategies that will power your organization’s growth. Preach law & co. combine our strategy expertise with local market knowledge to facilitate your access to new markets.

Partner Selection Strategy: The search for growth and the need to complement capabilities often results in organisations seeking to work with partners around the world. Working with the right partner, however, is critical for success. At Preach Law & Co. screen and select potential targets for you and assess the strategic and operational fit between both entities, prior to the transaction.

We help organisations to clearly establish the drivers, objectives and outcomes of a robust partnering strategy. We research the market for interested partners, seek expressions of interest and assist in the shortlisting 2 – 3 ideal partners, based on clearly defined selection criteria. On the basis of the selected partner we assess & make the arrangement for the strategic and operational fit between both entities.

Strategic and Commercial Due Diligence: Preach Law & Co. conduct this service for Private Equity/M&A Firms, MNS’s and for Clients considering strategic partnerships, acquisitions, mergers, or investments as an avenue to growth. Our goal is to help understand how one can really create value through the proposed investment and minimise the risk of failure.

We help clients validate the investment hypothesis by clearly articulating the opportunity, expected returns and build an independent and objective view of the proposed investment. This is often supported by a valuation exercise.

6. Closing Strategy

Protect you and your company abroad.

Closing Down Operations: Closing down a dead operation is usually not a pleasing task for a local accountant. Preach Law & Co. see it with a different view. We offer our clients a close down team that specializes in this work.

Appointment of Liquidators: It is inevitable that some companies move into liquidation. The process of liquidation is elongated & also requires high levels of statutory compliance. It involves various complicated, country-specific regulatory norms. Preach Law & Co. cannot be the liquidator but we liaise with and support the liquidator by providing him with key historical accounting information.

Regulatory Fillings: Closing down a foreign entity generally provokes a tax and value added tax investigation. Company resistance therefore needs to be watertight. Preach Law & Co. cessation team ensures, this is the case and works with regulators to ensure their satisfaction and withdraw any objections to a shutdown.

What Preach Law & Co. Offers: Preach Law & Co. provides an integrated one point of contact solution to better protect you and your company. By using us, you can rest ensured that finance and administration support to your foreign operations is provided efficiently & effectively and you operate safely abroad. We are an independent self-sustaining provider of services with no links to, or investments in us, by sensitive third-parties such as your bank!