Vehicle for Entering India:

The traditional methods of entering India are the following:

(i)     Liaison Office: Such an office is not expected to engage in any commercial or business activities, and has usually been used for liaison purposes or to explore feasibility of a project. In order to set up such an office, the permission of the Reserve Bank of India is required.

(ii)     Project or Branch Office:   Special activities are allowed for such an office, which include the performance of a project by a foreign entity. Permission of the Reserve Bank of India is usually, but not always, required.

(iii)     Subsidiary or Joint Venture:  The investor may enter the ordinary stream of commerce by investing in a corporation that is a wholly owned subsidiary that sets up new operations or acquires an existing entity and its operations, or enters into a joint venture with a domestic partner. Permission is not required unless it is industry specific.