AS A DOMESTIC ENTITY

Foreign Investor can commence business in India as a Indian or Domestic Entity that provides more flexibility in doing business.

You can incorporate a wholly owned subsidiary where 100% FDI is permitted. In sectors where 100% FDI is not permitted, Foreign company can have  a Joint venture with another Indian entity or can form a Limited liability partnership.

Resident Director or Designated partner is mandatory for a domestic entity setup by Foreign investor.

Further such entities enjoys same tax rate and residential status as available to any other Indian Company.

A WOS / JV can be established either as public limited company of a private limited company. Major difference between tow is that in case of public company funds can be raised from public where as private limited companies are closely held.

Joint ventures or Limited Liability partnership are also preferred to take advantage of existing business setup in India over a greenfield expansion.

A foreign company establishing a domestic entity has to file declaration with in 180 days of establishment.

Tax rates on these entities are same as applicable to Indian entity and there is no restriction on repatriation of profit as dividend subject to rules and regulations.

Wholly Owned Subsidiary / joint Venture

Carry out trading, manufacturing or professional services as permitted by FDI policy

Limited Liability Partnership

Enjoy status of limited Liability with some relaxation in compliances