The Foreign Exchange Management Act, of 1999 allows foreign entities to set up business operations in India. The entry strategy may be decided upon, depending on the nature of operations that are intended to be carried on in India. A foreign entity may thus set up business in India, either in the form of :
• Liaison Office
• Branch Office
• Project Office
• Wholly Owned Subsidiary or
• Joint Venture Company
We assist foreign entities set up business in India by providing advisory services on entry strategies and also managing the setting up of the business entity in India, all through to bring the entity to the stage where business operations may be commenced.
Post the incorporation of a business entity in India, compliances under several laws and regulations prevailing in the country are to be met. This places the onus of responsibility on the business entity to comply with such laws. We render end-to-end services in this regard. Such services consist of the following:
• Obtaining registration under the various statutes applicable
• Maintenance of statutory records and registers
• Generation of periodic reports and filing the same with the relevant authorities
• Other compliance management services
The fast and steadily growing economy of India has made India one of the most famous and popular destinations in the world for Foreign Direct Investment[FDI]. The government of India thus allows for FDI in India in almost all sectors except a very few. Sectoral caps have been fixed for certain sectors such as telecommunication, insurance, etc, whereas 100%
FDI is allowed into most other sectors.
FDI in India can be made under two routes –
• Automatic Route; or
• Approval route
FDI under automatic route is now allowed in all sectors, including the service sector. On the other hand, approval of the RBI is to be obtained in the case of sectors not covered under the automatic route. We assist in foreign direct investments into India under both routes.
As per the Foreign Exchange Management Act, 1999 foreign entities that have set up businesses in India are to file certain documents with the RBI periodically. We provide advisory as well as compliance management services in this regard.
Secondly, where the foreign direct investment is made through the approval route, certain documents are to be furnished to the Foreign Investment Promotion Board periodically. V.Ramaratnam & Company assists in meeting such compliances as well.
V.Ramaratnam & Company offers back-office management services such as accounting and payroll processing to entities that have set up businesses in India. It encompasses the design, implementation, and review of accounting manuals, and advice on various accounting issues including those related to Indian GAAPs, international GAAPs, and US GAAPs.