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Setting up Subsidiary Company in India - YouTube
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setting up subsidiary company in India
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by foreign companies by company illegal
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group com
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the Indian corporate law and corporate
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governance consultants formation of
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subsidiary company in India foreign
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company can form subsidiary company in
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India and can own 100% shareholding in
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all sector except certain negative
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sector or industries as prescribed an
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FDI and management can before a national
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or representative of foreign national
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India is an open market and majority of
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sectors foreign investment is allowed
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with repatriation benefits the profit
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and investment is allowed to take back
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an investor s currency India has
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consistently been classified as among
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the most attractive investment
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destinations by reputed international
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rating organizations with its highly
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skilled and cost-effective manpower
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it offers immense opportunities not only
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for Business Process Outsourcing but
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increasingly for the higher end of the
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value chain and knowledge process
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outsourcing and engineering process
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outsourcing a foreign company planning
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to set up business operations in India
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has the following two options as an
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Indian company as a foreign company
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one joint venture as an Indian company a
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foreign company can commence operations
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in India by incorporating a company
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under the Companies Act 1956 through
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joint ventures or wholly owned
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subsidiaries
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for inequity and such MDM companies can
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be up to 100 percent depending on the
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requirements of the investor subject to
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equity caps in respect of the area of
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activities under the foreign direct
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investment FDI policy details of the FDI
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policy sectoral Equity caps and
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procedures can be obtained on a specific
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request types of joint venture as an
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indium company a joint venture with an
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Indian partner be wholly owned
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subsidiary company
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joint-venture with an indian partner
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foreign companies can't set up their
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operations in india by forming strategic
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alliances with Indian partners joint
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venture may entail the following
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advantages for a foreign investor
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established distribution marketing set
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up of the Indian partner available
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financial resource of the Indian
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partners established contacts of the
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Indian partners which helps move in the
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process of setting up of operations
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wholly owned subsidiary company foreign
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companies can also set up wholly owned
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subsidiary in sectors where 100% foreign
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direct investment is permitted under the
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FDI policy incorporation of company for
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registration and incorporation set of
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applications have to be filed with
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Registrar of Companies Roque once a
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company has been duly registered and
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incorporated as an Indian company it is
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subject to Indian laws and regulations
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as applicable to other domestic Indian
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companies joint venture as a foreign
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company foreign companies can set up
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their operations in India through
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liaison office representative office
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project office branch office
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such offices can undertake any permitted
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activities companies have to register
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themselves with Registrar of Companies
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ROC within 30 days of setting up a place
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of business in India
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liaison office representative office
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liaison office acts as a channel of
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communication between the principal
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place of business or head office and
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entities in India liaison office cannot
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undertake any commercial activity
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directly or indirectly and cannot
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therefore earn any income in India
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its role is limited to collecting
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information about possible market
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opportunities and providing information
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about the company and its products to
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prospective and diem customers it can
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promote Export Import from to India and
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also facilitate technical financial
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collaboration between parent company and
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companies in India
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approval for establishing a liaison
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office in India is granted by Reserve
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Bank of India RBI
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project office foreign companies
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planning to execute specific projects in
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India can set up temporary project site
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offices in India our bi has now granted
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general permission to foreign entities
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to establish project offices subject to
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specify conditions such offices cannot
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undertake or carry on any activity other
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than the activity relating and
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incidental to execution of the project
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project offices may remain outside India
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the surplus of the project on its
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completion general permission for which
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has been granted by the RBI
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branch office foreign companies engaged
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in manufacturing and trading activities
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abroad are allowed to set up branch
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offices in India for the following
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purposes
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export import of goods rendering
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professional or consultancy services
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carrying out research work in which the
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parent company is engaged
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promoting technical or financial
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collaborations between indium companies
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and parent or overseas group company
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representing the parent company in India
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and acting as buying selling agents in
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India rendering services and information
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technology and development of software
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in India rendering technical support to
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the products supplied by the parent
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group companies for an airline shipping
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company a branch office is not allowed
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to carry out manufacturing activities on
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its own but is permitted to subcontract
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these to an Indian manufacturer branch
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office is established with the approval
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of RBI may remain outside India profit
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of the branch net of applicable indium
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taxes and subject to RBI guidelines
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permission for setting up branch offices
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is granted by the Reserve Bank of India
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RBI
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visit us at company legal group calm
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