COMPANY INCORPORATION OUTSIDE INDIA

Indian Companies can set up their operations in foreign through

• Liaison Office/Representative Office
• Project Office
• Branch Office

Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies.

Liaison office/ Representative office

Liaison office acts as a channel of communication between the principal place of business or head office and entities in outside in India. Liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in outside India. Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective foreign customers. It can promote export/import from/to outside India and also facilitate technical/financial collaboration between parent company and companies in outside India. The approval for establishing a liaison office in outside India is granted by the foreign Reserve Bank rule.

Project Office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in outside India. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project.

Branch Office

Indian companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in outside India. A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).