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Entry Options For Foreign Organizations In India

images (63)From conducting researching the market to importing and exporting products, international organizations can function through their workplaces in India. Depending on the operational requirements, the organizations can set up three types of workplaces in the country. If the aim is to perform market research, gather details and bring out promotional activities, an organization should open a representative workplace or liaison. An organization can transfer or trade products through a branch office, or if it needs to to get a particular project, it has to set up a project office. Branch or liaison workplaces can be set up only after due authorization from the Reserve Bank of India (RBI), the country’s apex bank. If the international organizations follow certain circumstances, no authorization from the RBI is required for creating project office. There are some country-specific requirements.

Liaison, branch and project offices

The RBI has laid down some particular circumstances which a branch, project or liaison office has to follow to function in India.

Liaison office:

Liaison workplace mainly works as a communication channel between the parent organization and the Indian organizations. The link office can represent the parent organization for promoting trade or transfer from/to India. It can also perform analysis and gather details available on the industry potential for the parent organization’s products or services. It can also explore opportunities to get into partnerships with Indian organizations on financial and technical exchange. However, it cannot perform any business activity. Even the expenses for the leased workplace have to be met by the parent organization through forex trading. The link workplace cannot transfer and trade products and sell the organization’s products or services.

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