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Doing Business in India by Dean Nelson

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Choosing an Entry Strategy

As a foreign investor wanting to establish an Indian operation, you have several options, from branch offices through to wholly owned businesses. Each has advantages and disadvantages; identify your main purpose and projected length of business before focusing on one type of strategy.

Scoping the options

If you want to get a clearer picture of Indian market conditions before committing, establish a “liaison office.” This cannot conduct direct business, but can promote the parent company’s goods and services, and promote collaboration with companies in India. Liaison offices must have prior approval from the Reserve Bank of India (RBI). Approval is typically granted for three years before renewal is required. If you ...

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