Choose the right way to enter India from the start. Our India entry strategy team helps foreign companies compare a subsidiary, joint venture, LLP, liaison, branch or project office, clear FDI and RBI requirements, and set up a compliant structure that is tax-efficient.
An India entry strategy is the plan that decides how your company will operate in India: the legal form, the FDI route, the approvals needed, the tax position and the order in which everything is set up.
India continues to attract strong foreign direct investment, and it offers foreign businesses a large market, a deep talent pool and a growing manufacturing base. But the accounting, tax and regulatory environment is complex. Depending on your sector and activity, you may need government approvals before you start, and the mode of entry you choose affects your liability, control, tax cost and ability to repatriate profits for years to come.
If you are still deciding whether India is right for your business, start with an India market assessment. Once the answer is “Go”, an entry strategy turns that decision into a structure you can register, staff and run.
These structures create a separate Indian legal entity. They suit businesses that plan to earn revenue, hire staff and operate in India for the long term.
A wholly owned subsidiary (WOS) gives the foreign parent full control with limited liability. It is usually set up as a private limited company, which needs at least two shareholders, two directors and one director resident in India. This is the most common route for SMEs and multinationals.
A joint venture brings together a foreign investor and an Indian partner. An Indian partner can bring an established distribution network, financial resources, local relationships, and access to sectors where foreign ownership is capped. JVs can be incorporated as a company or, for specific projects, run as an unincorporated consortium.
An LLP combines the flexibility of a partnership with a separate legal identity and limited liability. FDI in LLPs is allowed under the automatic route in sectors that permit 100% automatic-route FDI without performance conditions. Compliance is lighter than for a company, but LLPs suit fewer business models, so we test the fit carefully.
A foreign company can also operate in India without incorporating a new entity, through an office approved under FEMA and set up through an Authorised Dealer bank.
A liaison office (LO) is a representative office. It can promote the parent's products, gather market information and act as a communication channel with Indian customers, but it cannot earn income in India. Running costs must be met through remittances from the parent. RBI norms require the parent to have a profit track record and a minimum net worth.
A branch office (BO) can carry out the same or similar activities as its parent, such as trading, professional services, IT services and research. It is generally not permitted to manufacture directly, though it can sub-contract manufacturing to an Indian company. A BO is taxed in India as a foreign company.
A foreign company that has won a specific contract in India can open a temporary project office (PO). If prescribed conditions are met, no prior RBI approval is needed. A PO can only carry out activities related to that project, and surplus funds can be repatriated once the project is complete.
| Route | Can earn revenue? | Liability | Key approval | Best suited for |
|---|---|---|---|---|
| Wholly Owned Subsidiary | Yes | Limited | Automatic route in most sectors; incorporation with MCA | Long-term operations with full control |
| Joint Venture | Yes | Limited (if incorporated) | As for a subsidiary, plus JV agreement | Shared risk, local partner, capped sectors |
| LLP | Yes | Limited | Automatic route in eligible sectors only | Service businesses with simple structures |
| Liaison Office | No | Parent liable | RBI approval through an AD bank | Testing the market, representation |
| Branch Office | Yes | Parent liable | RBI approval through an AD bank | Extending the parent's existing business |
| Project Office | Project only | Parent liable | Often no prior approval if conditions are met | Executing a specific Indian contract |
Not ready to set up an entity? An Employer of Record in India lets you hire your first employees legally while you decide on the long-term structure.
We understand your business model, India goals, timelines, funding and the activities you plan to carry out.
We confirm the sector's FDI route and caps, Press Note 3 applicability, and any licences or approvals your activity needs.
We compare entry routes on control, liability, tax, PE exposure and repatriation, and recommend the best option.
We prepare and file the incorporation or RBI application, including DSCs, name approval, SPICe+ forms and bank coordination.
We handle PAN/TAN, GST, Shops & Establishment, IEC, bank accounts, and FEMA reporting such as Form FC-GPR.
We provide accounting, payroll, company secretarial work, annual FLA returns and tax filings, so your India entity stays compliant.
Planning to build a plant? See our manufacturing set-up in India support.
Further reading: How to set up a company in India: a step-by-step guide · Crafting successful market entry strategies for India
Tell us about your business and your India plans. Our team will recommend the most suitable entry route and outline the approvals, timeline and compliance involved, at no cost and with no obligation.
Book a Free India Entry ConsultationShare your company details and India plans. We usually respond within one business day.
