Foreign Companies Entering India – What Structure Is Right For You?

India is one of the fastest growing markets in the world, making it one of the more attractive investment opportunities for companies across the world. However the business opportunity comes with its own challenges – specifically, finding your way around the complex corporate, legal and tax systems.

The first question an overseas entity must ask is: What is the right structure for my India presence? (No, the answer is not just "wholly owned subsidiary", even if this is the most common answer).

There are multiple options, each of them with their own merits and demerits:

Company (private or public)

The most common format which exists across the world, with limited liability. This is the default option for many reasons including that it is well-understood by everyone, however it has a higher compliance burden compared to some others.