LexNovaLegal Associates
Entry Routes for Foreign Companies in India: Subsidiary, LLP, Liaison, Branch or Project Office
Decide which structure fits before you begin the setup.
Short answer: a foreign company can operate in India through an Indian company (often a wholly owned subsidiary), a limited liability partnership, or an office of the foreign company itself — a liaison, branch or project office. The right choice depends on whether you will earn revenue in India, your sector's foreign investment rules, and how much liability you want to keep outside India.
This page compares the options. Once a route is chosen, the incorporation, approvals and filings are handled under our foreign business setup service. Our office is at No. 1 Karaneeswarar Koil Street, Saidapet, Chennai 600015. Call or WhatsApp 073580 88817, Monday to Saturday, 9.30 am to 6.30 pm.
What this covers
Decide which structure fits before you begin the setup.
Wholly owned subsidiary
An Indian private company that can trade fully; foreign investment follows the FDI policy (automatic or government route by sector).
Limited liability partnership
Possible for foreign investment in sectors open to 100% automatic-route investment without conditions.
Liaison office
Representation and communication only; it cannot earn income in India. Set up under RBI's FEMA regulations through an authorised bank.
Branch office
Permitted activities such as export-import or professional services, with income taxed in India.
Project office
For executing a specific contracted project in India, closed when the project ends.
Who we act for
- Overseas companies exploring India or Tamil Nadu as a market
- Foreign businesses with an Indian customer or project already signed
- Groups reviewing whether an existing office should become a subsidiary
How the engagement runs
Every matter is scoped and priced in writing before work begins.
1. Activity mapping
What you will do in India and whether you will earn revenue here.
2. Sector check
FDI caps, routes and any conditions for your sector.
3. Comparison note
A written comparison of feasible routes, compliance load and exit options.
4. Hand-over to setup
Once you decide, the setup is run under our foreign business setup service.
What to bring to the first consultation
Not every item is needed on day one — bring what you have, and we will tell you what else to obtain.
- Parent company constitutional documents
- Description of planned activities in India
- Expected investment and timeline
Frequently asked questions
- Can a liaison office sign contracts or invoice Indian customers?
- No. A liaison office can only represent the parent and promote its business; it cannot undertake commercial activity or earn income in India.
- Is a subsidiary always the best choice?
- Not always. It is the most flexible, but a project or branch office can be simpler for a single contract or limited activities.
- Do I need a resident director?
- An Indian company must have at least one director who has stayed in India for the period specified in the Companies Act, 2013.
- Why Chennai or Tamil Nadu?
- Many manufacturing and technology businesses choose Tamil Nadu. We advise on the legal setup; site and incentive decisions are commercial choices for you.
Related pages: Foreign business setup in India (service) · International & cross-border services · Company registration in Chennai · Corporate lawyer in Chennai
Discuss your matter with LexNova Legal Associates
Speak with a lawyer in Saidapet, Chennai. Consultations are available in person, by telephone, by video call or on WhatsApp, Monday to Saturday, 9.30 am to 6.30 pm IST.
Speak with our team about your matter.
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LexNova Legal Associates · No. 1 Karaneeswarar Koil Street, Saidapet, Chennai 600015 · 073580 88817