If you are running a foreign entity and thinking to start a new business in India then first you have to choose that which legal entity is best for your business needs and goal. Now days these are the most popular Business entities:
- Liaison Office/Representative Office
- Project Office
- Branch Office
- Joint venture companies
Liaison Office/Representative Office
‘Liaison Office’ means a place of business to act as a channel of communication between the Principal place of business or Head Office by whatever name called and entities in India but which does not undertake any commercial /trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.
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Project Office:
Project offices are that type of business entities which are incorporated by the foreign companies for as like temporary project or site offices in India. Now a days The Indian Government grants general permission for foreign companies to incorporate project office entity in India.
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Branch Office:
Branch office is that type of business entity which helps to expands business in the different parts of the country and in many different countries too. It refers to an establishment which carries on substantially the same business and activity as is carried out by its Head Office. it establish with the approval of RBI
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Joint Venture Company:
As it seems from its name a joint venture is a new enterprise owned by two or more participants to share markets / intellectual property and its knowledge and its profit too.
It is essentially a medium to long-term contract which is specific and flexible. Though, the joint venture a newly created business enterprise can be represented and its participants can continue to exist as separate firms. It can also be organized as a partnership firm, a corporation or any other form of business organisation which the participating firms choose to select.