Company

A company may be incorporated, inter alia, using the following modes:

»	Incorporating an Indian company with 100% foreign equity, operating as a wholly owned subsidiary;
»	Incorporating a Joint Venture Company (JVC) with an Indian partner and/or with the general public and operating as a listed company; or
»	Incorporating a JVC with an Indian partner and operating as an unlisted company.

Branch Office

A branch would mean an establishment carrying on substantially the same activity as its Head Office. Foreign companies intending to open a Branch Office (BO) in India need to obtain prior permission of RBI which would encompass even approval to the scope of activities that are intended to be carried out in India. As per the guidelines laid down by the RBI, the BO in India is allowed to carry on only the following activities:

»	Export / Import of goods;
»	Rendering professional or consultancy services;
»	Carrying out research work, in which the parent company is engaged;
»	Promoting technical or financial collaboration between Indian companies and parent or overseas group company;
»	Representing the parent company in India and acting as buying / selling agent in India;
»	Rendering services in Information Technology and development of software in India;
»	Rendering technical support to the products supplied by parent / group companies;
»	Foreign airline / shipping company

Liaison Office

A Liaison Office (LO) is in the nature of a representative office set up primarily to explore and understand the business and investment climate. A LO is not permitted to undertake any commercial / trading / industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from abroad through normal banking channels. The LO is permitted to undertake only the following activities:

»	Representing in India the parent Company / group Company;
»	Promoting export/ import from/ to India
»	Promoting technical / financial collaborations between the parent / group companies and companies in India;
»	Acting as a communication channel between the parent Company and Indian companies;
»	Any company intending to open a LO in India is required to obtain prior approval from the RBI, the apex foreign exchange management authority in India. Approval is usually granted for three years and can be renewed on expiry thereof.

Project Office

Foreign companies can establish Project Offices (POs) in India specifically for the purpose of execution of specific projects. A PO is similar to a branch office opened for the limited purpose of executing a particular contract. As POs are opened for undertaking a specific activity they cannot perform any other function or undertake any other activity. Generally, companies engaged in turnkey projects or installation projects set up PO’s. All expenses of POs must be met through inward foreign currency remittances if the rupee component of the contract, if any, is not sufficient to meet the said expenses. RBI approval is required to open a PO.