Business Setup in India

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 1.3 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 VJM GLOBAL you are going to get the right assistance to thrive your business in India. 

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Our Associations

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.

  • 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.
  • 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
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Liaison Office

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.

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  • 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
  • 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

Project Office

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.

  • 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
  • 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
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Industries We Serve

Countries We Serve

Automotive & Transportation​

​Retail & Wholesale





And more…


Banking & Finance​


United States

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What our clients say about us

Frequently asked Questions

According to a recent report from the World Bank, the ease of doing business in India has improved quite a lot after a series of reforms. Things are much more comfortable for companies to pay taxes, get construction permits, and proceed with cross border transactions. As per the “Doing Business 2019” report, India features in the list of top 10 most improved economies. From automotive, infrastructure, chemical to pharmaceuticals, textiles and others with a population of 1.36 billion India can offer the most prominent market to perform business proceedings for foreign entities.

Foreign entities looking to set up Liaison Office or Branch Office in India need to apply through Form FNC along with the required documents to the General Manager of Foreign Exchange Department under the Central Office Cell of RBI. However, the application should be processed via an Authorised Dealer Bank.

A foreign company willing to set up a LO in India should have reported a net worth of minimum USD 100,000 or its equivalent as per their latest Audited Balance Sheet. In the case of the Liaison Office, the value should be a minimum of USD 50,000 or equivalent.

The answer is no! If a Liaison Office or a Branch Office needs to have more than one account, they need to get permission from the Reserve Bank of India through its AD Category I bank while maintaining the reason clearly.

While Liaison Offices can’t acquire property, Branch Offices and Project Offices can have a property for their own use. They can proceed with incidental or permitted activities but can’t offer rent or lease on their property.

A Liaison Office does not ensure or assure any income in India since they don’t have the permission to conduct commercial/ industrial or trading activity directly or indirectly. Hence, a company that only has a Liaison Office is not subjected to taxation in India.

Yes, Liaison Offices can upgrade as a Branch Office, all they need to do is re-designate the account as a Branch Office account.

If a foreign company establishes a direct business connection with the Liaison Office, then it can trigger permanent establishment status in India.

No, an Indian subsidiary company abroad can’t open a BO in India within the automatic route.

No, AD banks don’t need the UIN form RBI. They have the authority to offer UIN form for Project Office.

Services for Foreign Companies

Know more about our complete portfolio of services for foreign companies in India​

Transfer Pricing

Transfer pricing is all about determining the nature, treatment and taxability of intra-group transactions across several geographies. The transaction is put to test by the determination of arm’s length price of the transaction as per the prescribed transfer pricing methodologies.

FEMA Advisiory

If you are looking for a trustworthy partner or a reliable FEMA advisor, we will be the right fit for you. We keep a world-class pool of professional FEMA consultants to provide you with a complete solution, covering almost all areas of FEMA, bookkeeping and accounting tasks, GST returns etc.

Taxation of Expatriates

We are the market leaders to deliver a higher-quality accounting and reporting solution to our clients more quickly and efficiently in an environment of technological change, digital demonstration, could computing, online bookkeeping and GST filing, and increased regulatory changes and scrutinizes.

Why Choose Us

Client Centric Approach

Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.

Quick Turnaround

We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.

Team Work

We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds. We believe that this diversification plays a vital role in motivating the team into High Performing Teams.

Open Communications

We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery.

Driving quality in delivery

Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.

Blogs and Articles

Foreign Owned or Controlled Companies (FOCC) under FEMA
Foreign Direct investment

Foreign Owned or Controlled Companies (FOCC) under FEMA

Foreign investors are more inclined toward options where they have complete control over the entity and also such entities can enjoy benefits as domestic companies. FOCC has become a wonderful source of investment for such investors. FOCC can conduct business in India as a domestic company.

Read More »

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Business setup in India -
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