Doing Business in India
Due to the reasons of large market for various price
points, Democratic set up, reasonably well established legal set up,
economical manufacturing and outsourcing, availability of large technical
and other manpower at economical rates, India is a preferred
destination/source/place of business for many companies across the world.
There are however several Regulatory Requirements, Taxation, Import
duties, Foreign Trade Export Policy and Procedures, that are necessary to
be understood and taken care of, for taking a decision on, and later
actually making Investments and doing Trade with India.
Andees is an established consulting firm providing services related to
Foreign Trade Policy, Customs, Foreign Investments in India, RBI, and
other related matters.
The difference :We
undertake the responsibility to finally execute the job. The execution
normally includes complete planning, documentation, application
preparation, submission, and representation at the authorities, follow up
and liaison till the benefits in the form of licenses, scripts, cash are
Fee : Our fee is
normally pre-defined at the start of the job and not dependent on the no.
of hours etc. spent. While a part of the fee is payable in the beginning
for efforts towards documentation, application preparation etc. a larger
part of the fee is normally payable after the job is completed
Because of our experience working with a cross-section of Industries on a
variety of matters, and liaison with several government departments, we
are able to better understand a company’s business from the perspective of
trade and investments with India. This results in our providing practical
advice and undertaking the complete job.
Services provided to Foreign Companies:
1. General Advice on regulatory issues, procedures related to Trading,
Investment and Execution of contracts in India.
2. Advice on business structure, indirect tax structure, Import duties in
the country related to Imports, Exports, Manufacturing, Contract
Execution, how to start office in India, business in India, where to do
business in India etc.
3. Presentations on the Investments, Indirect Tax structuring, Imports,
Exports Policy, Procedures, Licenses, Incentives, Customs related matters
4. Undertaking turnkey job of application preparation, documentation,
representation, liaison with various authorities till the finalization for
a. Opening of liaison, branch, project office in India or
Setting up a subsidiary co. in India.
b. Registration with various authorities required, Regular
filing of reports etc. with the authorities, accounting etc.
c. Licenses, NOC, benefits, tax refunds, drawback etc. from
departments regarding Import or export from the country.
5. Providing support to foreign companies in India till they are able to
establish their own office. This can include providing office space,
infrastructure, communication addresses, personnel etc. at nominal fee.
A foreign enterprise wishing to do business in India has following
- This provides an indirect presence in India to the foreign
entity. An Indian entity can be appointed as agent of the foreign
business. Depending upon the scope of the agency agreement, the
agent can buy or sell or provide any other service.
- These are owned and controlled by the foreign enterprises.
However the liaison offices are not allowed to earn any income and
are primarily opened by foreign companies to liaise with their
customers in India and for promoting export & import. No
manufacturing, trading or any other commercial activity is allowed
in liaison offices.
- The branches are basically an extended arm of the foreign company
and can undertake export / import of goods, consultancy, research,
coordination with local buyers and sellers, provide technical
support for products sold in India, development of software and
airline / shipping business. However branches are not allowed to
undertake manufacturing activities except research work in which
parent company is engaged. These branches are treated as foreign
company in India.
Ask us for comparison between Liaison Office and Branch Office
Reserve Bank has granted general permission to foreign companies to
establish Project Offices in India, provided they have secured a
contract from an Indian company to execute a project in India, and
i. the project is funded directly by inward remittance from abroad; or
ii. the project is funded by a bilateral or multilateral International
Financing Agency; or
iii. the project has been cleared by an appropriate authority; or
iv. a company or entity in India awarding the contract has been
granted Term Loan by a Public Financial Institution or a bank in India
for the project.
Joint Ventures & 100% subsidiary
- This is the most sought after route for foreign companies wishing
to establish a base in India. For this an Indian company with
limited liability is formed in India, whose liabilities are limited
to Indian operations only. The Companies once approved are treated
like other Indian companies and enjoy all the benefits of being
Indian Company. Depending upon the business sector, the investments
on repatriation basis are allowed under automatic route or through a
prior approval by FIPB (Foreign Investment Promotion Board).
Foreign Technology & Know How
- Indian businesses are allowed to buy technical know-how and
expertise from foreign enterprises for their businesses. Technology
tie-ups involving payment up to US$ 2 million and royalty up to 5%
on domestic sales and 8% on exports for a period of 7 years from the
date of commercial production are cleared by Reserve Bank under
automatic scheme. Tie-ups involving higher amounts are subject to
approval from SIA (Secretariat for Industrial Assistance) on
- Products covered under compulsory licensing, products reserved
for SSI sector, renewal of technology agreements, or cases where
technology was earlier sold to an Indian party also require prior
approval from SIA.