Doing Business in India For Dummies®

Choosing an Entry Route

You can utilize a variety of entry methods and strategies to start your business in India. Getting off to a good start is critical, so your entry method decision should be a sound one.

The most important factor in choosing an entry route should be the type of industry you’re in, because the service determines the functions your business needs to be able to perform in India. The nature of some industries requires that an Indian office be extremely versatile in the number and range of actions it can take, while other industries require little more than a name-plate in India to take care of the appropriate business dealings.

In this section, I highlight several entry routes to fill you in on your options. Whether you choose to enter India with a branch office, liaison office, project office, joint venture, or a 100 percent foreign-owned company, you need to be familiar with the features and limitations of the various routes. Check with someone in your industry who’s conducted business in India before and made the same choices, and you can also discuss the options with a consultant (see Chapter 7 for more information on using consultants).

Liaison/representative office

The liaison/representative office option is the simplest and quickest way of dipping your toe into the Indian business pool. A liaison office acts as a communication channel between foreign businesses ...