My company is planning to open a branch office in India. If it works and we feel confident about it then we will incorporate our company in India. - Does it work that way? - Will it be similar to OUTSOURCING? - What are the leagal issues opening JUST a branch office in India? - What steps do I need to take? We have picked up city where we'd like to open this branch. Also found out the operational cost and capital cost.
Its quite easy. U need to register a company though if you want to transfer money officially in any foreign currency to the branch office, since transfer of money by foreigners to any entity in India is restricted. A company is OK; else you would need to go through channels such as Western Union whereby the money would have to be transferred to an individual. Any money transfer beyond US$ 5000 to an individual has to be reported to the Government (to prevent using India as a conduit for money laundering).
Most equipment is locally available and quite cheap. Communications facilities (broadband) are available in most large cities and very inexpensive.
Establishing a company takes about a month or so and should be done thru a local Chartered Accountant (Financial Advisor). The equity outlay for setting up a company can be as low as US$ 2500/- + fees for the Financial Advisor, etc.
Thanks Ashwin! Could you please break up $2500? I found out that I need to register with ROC (registry of Companies) if the office space in not in EPZ. Also with STPI to get export/import exemptions. Any info that you have on this topic please pass it on..