India: Entry Strategy

Legal Structures in India

A foreign business looking to set up its operations in India can consider the following options:

Wholly-owned subsidiary company

A foreign company can set up a wholly owned subsidiary company in India to carry out its activities. Such company shall be treated as an Indian resident despite having 100% foreign-shareholding. Minimum two members are required for a private limited company, and seven members for a public limited company. Such company must comply
with the provisions of the FDI policy.

Joint venture with an Indian partner (equity participation)

Foreign companies can also form strategic alliances with Indian partners, for carrying out business operations in India. Such company also must comply with the provisions of the FDI Policy.

Limited liability partnership (LLP)

LLP is a new form of business structure in India. It combines the independent legal status & perpetual succession nature of a company, with the organizational flexibility of a partnership firm. At least two partners are required to form an LLP and they have limited liability in the business.

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