How Foreign Companies Start a Business in India

It is natural for other countries to want to invest in India because it is a developing country, and one of the fastest growing in the globe. India is a business hub because the cost of production is low in India, which drives up the demand curve for a product or service.

With each passing year, more and more foreign companies come to India to do business. The challenge now is how a foreign company operates in India. Let me answer the most basic question about this in a simple question-and-answer format. The coolest and quickest way to start a business in India is to form a private limited company. Up to 100 percent foreign direct investment (FDI) into a public limited company

A foreign firm conducting business in India, like an Indian corporation, can close its doors. Its procedure, on the other hand, differs little.

According to the Companies Act, 2013, and the Reserve Bank of India, a wholly owned company or subsidiary can seek to be wound up or have its name struck from the register of companies.

Liaison Offices, Project Offices, and Branch Offices are closed in two (2) steps: file an application for closure with the ROC in E-form FC-3, and then close the office. Filing an application with the RBI to close the Liaison Office through a recognised AD Category – I bank, as well as remitting proceeds abroad and closing a bank account in India.