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FOREIGN COMPANIES COMING INTO INDIA A foreign company planning to set up business operations in India has the following two alternatives: Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office or other place of business) Regulations, 2000. Option I AS AN INDIAN COMPANY A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through: * Joint Ventures * Wholly Owned Subsidiaries Foreign equity in such Indian companies can be up to 100% depending on the necessities of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy. Joint Venture With An Indian Partner Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor: * Accessible financial resource of the Indian partners * Established contacts of the Indian partners which help smoothen the process of setting up of operations * Established distribution/ marketing set up of the Indian partner Wholly Owned Subsidiary Company Foreign companies can also set up wholly owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy. Incorporation of the Company For registration and incorporation, set of applications have to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as appropriate to other domestic Indian companies. Option II AS A FOREIGN COMPANY Foreign Companies can set up their operations in India through: * Liaison Office/Representative Office * Project Office * Branch Office Such offices can

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