How to Establish a Business in India: Choosing a Low-Risk Entry Model

Published: June 2015

In this issue of India Briefing Magazine, we explore market entry options that allow foreign investors to test the water before diving into the Indian market. In the first article, we examine the government’s new eBiz portal. This portal provides single window processing for a number of essential government-to-business (G2B) services, including many registrations and licenses required for company set-up. Next, we provide a step-by-step guide for setting up a liaison office (LO) in India, an entity that allows foreign companies to establish a footprint while keeping their legal, financial and administrative commitments low, and conclude by examining the strengths and weaknesses of India’s LOs.

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  • No. of Pages: 12 pages

In this issue:

  • India’s new eBiz Portal: All You Need to Know
  • Establishing a Liaison Office in India
  • The Advantages & Disadvantages of Running a Liaison Office in India

India is well-positioned to take advantage of the rising cost of doing business in China and other countries in Asia. In contrast to many other Asian markets, foreign investors find government support for industry, low labor costs and a massive unified market in India. Foreign companies can take advantage of these conditions to reduce operating costs, diversify workforces or supply chains, and access new consumer markets.

Despite these bright prospects, India has earned a reputation as a difficult place to do business. While this reputation is not unfounded, business challenges in India are manageable. In this issue of India Briefing Magazine, we explore market entry options that allow foreign investors to test the water before diving into the Indian market.

In the first article, we examine the government’s new eBiz portal. This portal provides single window processing for a number of essential government-to-business (G2B) services, including many registrations and licenses required for company set-up. Next, we provide a step-by-step guide for setting up a liaison office (LO) in India, an entity that allows foreign companies to establish a footprint while keeping their legal, financial and administrative commitments low, and conclude by examining the strengths and weaknesses of India’s LOs.

Doing business in India can be challenging, but foreign investors have good options to manage these challenges when entering the market for the first time. With support from local specialists, foreign investors can find the best path to India for their business.


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