Foreign Business Expansion & India Market Entry Practice
Turnkey corporate entity structuring, 100% Automatic Route Foreign Direct Investment (FDI), RBI FIRMS compliance, Transfer Pricing Safe Harbours, Advance Pricing Agreements (APAs), and customs bonded manufacturing (MOOWR) for multinational corporations, global mid-market enterprises, and foreign founders scaling into the world's fastest-growing major economy.
Expanding into India: High Growth Coupled with Intricate Statutory Controls
India offers unparalleled demographic scale, competitive engineering talent, and 14 Production Linked Incentive (PLI) sectors. However, successful inbound execution requires navigating strict 30-day RBI FIRMS share allotment reporting, Press Note 3 land-border security screenings, rigorous Section 92 Transfer Pricing scrutiny, and Special Valuation Branch (SVB) customs certifications.
Entry Vehicle Selection & Setup
Comparative evaluation and incorporation of Wholly Owned Subsidiaries (WOS Private Limited), Limited Liability Partnerships (LLP under 100% automatic route), or Branch/Liaison Offices under RBI Master Directions.
FEMA & RBI FIRMS Reporting
Mandatory 30-day Form FC-GPR filing for inward remittance share allotment, Form FC-TRS for secondary equity transfers, Press Note 3 compliance screening, and Foreign Liabilities and Assets (FLA) annual filing.
Transfer Pricing & APAs
Intercompany agreement structuring, Form 3CEB audit certifications, Local File / Master File documentation, Rule 10TD Safe Harbour filings (17–18% margins), and Unilateral/Bilateral Advance Pricing Agreements (APAs).
MOOWR & Customs Optimization
Licensing under Manufacturing and Other Operations in Warehouse Regulations (MOOWR) for complete customs duty deferment on imported capital goods and raw materials, plus Special Valuation Branch (SVB) defense.
GCC 2.0 & Tech Center Setup
Turnkey establishment of Global Capability Centers (GCCs) for AI engineering, global tax controllership, and quantitative finance. Permanent Establishment (PE) insulation and IP licensing structuring.
Expat Taxation & Shadow Payroll
Managing executive cross-border secondments, Section 6 tax residency, double tax treaty exemptions under Article 15 (Dependent Personal Services), and Supreme Court NOS ruling defense against 18% reverse-charge GST.
Comparative Evaluation of India Entry Structures
Assessing legal liability, commercial scope, tax treatment, and profit repatriation for foreign investors.
| Entity Type | Foreign Ownership | Permitted Activities | Corporate Tax Rate | Profit Repatriation | Statutory Setup Timeline |
|---|---|---|---|---|---|
| Wholly Owned Subsidiary (WOS Pvt Ltd) | 100% (in automatic sectors) | Full commercial, manufacturing, trading & software operations | 22% base tax (+ surcharge/cess) u/s 115BAA | Dividend distribution (subject to DTAA withholding 5%–15%) | 2 to 3 Weeks |
| Limited Liability Partnership (LLP) | 100% (sectors with 100% auto route & no FDI conditions) | Professional, advisory & technology services (trading restricted) | 30% base tax (tax-free profit share distribution to partners) | Repatriable post-tax without dividend withholding tax | 3 to 4 Weeks |
| Branch Office (BO) | Foreign parent extension | Export/import, professional services, research (manufacturing prohibited) | 35% base tax (reduced from 40% in Budget 2024) | Freely repatriable net of Indian taxes via Form 15CA/15CB | 6 to 8 Weeks (RBI approval) |
| Liaison Office (LO) | Representational post | Channel of communication, market research (zero commercial revenue) | Non-taxable (subject to strict PE non-involvement certification) | Surplus expense funds returnable upon winding up | 6 to 8 Weeks (RBI approval) |
Turnkey 4-Stage Market Entry Roadmap
Methodical onboarding guided by Chartered Accountants and cross-border regulatory counsel.
Entity & Name Approval
Digital Signature Certificates (DSC), Director Identification Numbers (DIN), and MCA RUN / SPICe+ Part A name reservation with cross-border trademark verification.
Incorporation & Tax IDs
Filing SPICe+ Part B, drafting bespoke Articles of Association (AOA) with parent veto rights, Certificate of Incorporation, PAN, TAN, and state GST registration.
Capital Influx & RBI FIRMS
Opening dedicated capital bank accounts, receiving FDI remittance, issuance of equity shares within 60 days, and mandatory Form FC-GPR filing on the RBI FIRMS portal within 30 days.
Transfer Pricing & Audits
Drafting cross-border intercompany Master Service Agreements (MSA), benchmarking operating profit markups, Safe Harbour registrations, and Form 3CEB preparation.
Consult with Cross-Border Tax Partners
Direct consultation with senior international tax partners on India market entry, FDI route structuring, and transfer pricing certainty.