Business Setup In India

Setting up a business in India has been liberalised over the years, still it calls for company formation, approvals if required, legal compliances and registration with various authorities.


Ahuja & Ahuja on the basis of "turnkey" methodology provides Business Setup Solutions taking extra care of approvals, legal compliances, registrations with authorities etc.providing a ready to work business setup in shortest possible time frame.Setting up a business in India involves various steps. With the help of experienced staff we make the procedure simple.


For a foreign company three modes of incorporating a company are available in India,these are:

  • Liaison Office
  • Foreign Branch Office
  • 100% Owned Subsidiary

Liaison Office -

This kind of office is setup wherein only liaison work is undertaken by the entity in India and all transactions whether related to Sale/ Purchase/ Provision of any services and even receipts and payment of money is undertaken directly by the parent company. Liaison office is not authorized to undertake any type of commercial activity accept liaison.


Foreign Branch Office -

This kind of office setup is one step ahead of Liaison Office. In this type of setup trading transactions i.e. sale / purchase of goods and provision of services is allowed directly by the Foreign Branch Office itself but there are restrictions with regard to manufacturing and providing training.

Foreign Branch Office Registration


Wholly Owned Subsidiary -

This type of setup is allowed to undertake all kinds of commercial transaction subject to general or specific restrictions imposed by the Reserve Bank of India (RBI) or Foreign Inward Promotion Board (FIPB). They are required to file necessary returns with various taxation and legal authorities as a separate entity from its parent. The wholly owned subsidiary would be an Indian company with 100% shareholding owned by the parent company.


After deciding on the mode for forming a company as mentioned above necessary permission of either the Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB) is required. In most of the activities 100% foreign equity participation is allowed on automatic route, in such cases there is no requirement for permission. For others permission is required from either FIPB or RBI before registration

After obtaining permission of Reserve Bank of India (RBI) or Foreign Investment Promotion Board (FIPB) company / branch office / liaison office is required to be registered with the Registrar of Companies under the Companies Act also. This finishes the process of incorporation of an organisation in India.

Click here to Contact Ahuja & Ahuja for specialised services in all the above.


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Registration with several Authorities

A business to turn fully functional in India there is necessity of registration with various tax, labour and other authorities. For eg. a manufacturing / trading setup is needed to get registered with Sales Tax / VAT Authorities, Income Tax Department, Excise Department, Custom Department (if involved in import / export), Provident Fund Department, ESI Department etc. Our experienced staff provide services for registration with several authorities immediately after incorporation.This leads to providing our clients ready to operate business setup within the shortest possible timeframe.