AS A FOREIGN ENTITY

Foreign Investor can commence business in India as a Foreign entity. Type of such set up includes Branch office, liaison office and project office. AS a Foreign company, there are limitation in carrying all business activities and can be set up for a limited purpose. Choice of the type of entity depends on the activity carried out by the foreign entity. Liaison office are permitted only liaising activities i.e. only coordinating or market research on behalf of foreign company and do not have any  income in India. Project Offices are setup to monitor projects. Branch offices are permitted to carry out trading activities and manufacturing activities only in limited area.

A Foreign company has to open Branch office / Liaison office / Project office as the case may be with in six month of the approval.  A further extention of six months can be given by AD Category-I bank in case reasons of not opening office is beyond control of Foreign Company. Any further extension of time shall require the prior approval of RBI.

Foreign entity after being registered with the RBI ought to get itself registered with the Ministry of Corporate Affairs (MCA). registration with MCA is required with in 30 days of establishment.

*RBI guidelines regarding establishment of LO/BO/PO: https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10398&Mode=0. Further, a resident having PAN to be appointed for receiving notices in India for foreign entity/company