Setting- up of Business Establishments:

Any person can establish a business in India through any of the following modes depending upon the nature of the industry, types of Services to be provided from such place of business, incentives provided by GOI or State Governments,  Tax benefits under Income Tax Act, 1961, etc.  The Persons Resident outside India is also required to comply with the provisions of FEMA Regulations, RBI guidelines & Foreign Direct Investment Policy of GOI for establishing their business venture in India and to invest foreign funds in the same.

• Incorporation of a new company
• Formation of Subsidiary of a Foreign Company
• Formation of Joint Venture Company
• Formation of Limited Liability Partnership.
• Opening a Branch office
• Opening up of Project office
• Opening of the Site office
• Opening of Liaison Office
• Opening of a standalone Branch office.

The person resident in India including Indian companies, LLPs, and partnership firms can invest in the business as per their requirement. However, for the capital requirement of business ventures of non-residents or foreign companies, Foreign Direct Investment (FDI) is permitted by NRIs, OCIs, PIOs, or Persons Resident Outside India or by a Foreign company. Such investment is either on Repatriation or Non-Repatriation basis in compliance to RBI Guidelines & Sectoral Cap for FDI (i.e. maximum permissible FDI share) for the Industry concerned. There are certain sector/ Industries where FDI is permitted under Automatic Route (Sectors under Automatic Route). There are certain Sectors/ Industries where FDI is permitted with GOI permission (Sectors with GOI approval). There are Sectors where FDI is not permitted (Sectors where FDI is not permitted).

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