India is experiencing rapid economic growth and is now recognized as one of the world's fastest-growing economies. It is estimated that the country's economy will grow by 6.5% Annually. This makes India an attractive destination for foreign investors seeking opportunities.

HVJ & Associates is dedicated to guiding investors or business owners and helping them bridge any gaps related to foreign direct investment in India. We are here to assist you in unlocking the full potential of this thriving market!

As a Business Owner or an Executive of a Multi-national Company, if you are planning to either expand the market for your products and services in India or setting up an offshore development center in India or business support center in India, then you have following entity structures in India to choose from.

One of the World's Fastest-growing Economies: India’s economy is booming, making it a prime destination for FDI. Investing in India offers MNCs a share in this growth story.

Largest Youth Population in the World: India has the largest youth population globally. This means a vast and dynamic workforce. MNCs can leverage this demographic dividend when expanding their business in India.

Rising Global Competitiveness: India is becoming more competitive on the global stage. With improvements in infrastructure and ease of doing business, it’s becoming an attractive destination for FDI.

Rising Economic Influence: As India’s economy grows, so does its influence on the global stage. Investing in India means being part of this rising power.

As a Business Owner or an Executive of a Multi-national Company, if you are planning to either expand the market for your products and services in India or setting up an offshore development center in India or business support center in India, then you have following entity structures in India to choose from.

For foreign companies eyeing India's market, one viable route is through a wholly owned subsidiary (WOS). This means that the foreign holding company has complete control and is responsible for its business activities. It is a popular choice for small and medium-sized businesses because India has simplified compliance procedures through digitalization. Our services streamline the process of company incorporation in India and facilitate FDI in India. A WOS can be a private limited company (private limited) or a Limited Liability Partnership (LLP).

Private Limited Company: private limited is a privately held small business where liability is limited to shares, and it has fewer than 50 shareholders with no public trading of shares. Incorporating a private limited offers a simpler compliance regime for foreign companies starting operations in India.

Limited Liability Partnership (LLP): An LLP combines the features of a private limited corporation and a partnership, offering separate legal status and liability restrictions. The Indian government encourages foreign investors to use LLPs, as they are easier to manage and have fewer compliance requirements. LLPs also offer several tax advantages for domestic market entry in India.

Another popular approach after wholly owned subsidiaries is through joint ventures or equity participation. In a joint venture, a foreign company forms a strategic alliance with an Indian partner. Two companies, one foreign, and one Indian, join together to create a joint venture. The Indian partner should already be operating in the same field or area. There are two types of JVs

Incorporated JV: These JVs are formed as separate legal entities and follow the laws set by the government. A popular format is Private Limited as explained above

Unincorporated JV: These JVs are formed through a contract and do not have a separate legal entity, instead, they are governed by the terms and conditions of the contract. A popular format is LLP as explained above

Branch Office (BO) is an extension of a foreign company's operations. It lets the company do business while keeping its separate legal identity. To start, entities need approval from the Reserve Bank as per FEMA 19992 rules. The Business Process Outsourcing (BPO) industry in India, which offers services like customer support and data entry, is a popular sector for foreign companies due to its skilled workforce and cost-effective solutions.

Project Office: A Project Office is another way for foreign entities to enter the Indian market. It’s a temporary establishment that allows foreign companies to execute specific projects in India. Unlike a Liaison Office, a Project Office can undertake commercial activities related to the project. It’s an effective method for foreign entities to have a presence in India, specifically for project execution. It’s a strategic move that aligns with the concept of FDI in India, paving the way for future growth and expansion.