Foreign Companies Entering India: Legal Setup, Product Registration & Compliance Explained

India is no longer just a low-cost market—it’s a rapidly evolving economic hub with a growing digital economy, a large consumer base, and increasing ease of doing business. Whether you’re a foreign startup, SaaS provider, import/export business, or product-based company, India offers significant opportunities—if you get your legal setup and compliance right from day one.

This blog will give you a practical roadmap for legally entering India, tailored for foreign businesses across regions like the US, UK, EU, Australia, and the Middle East/Africa (MEA).

Part 1: Market Entry Structures for Foreign Companies in India

Foreign companies have multiple legal pathways to enter India. Each option has specific legal, tax, and operational implications:

1. Wholly Owned Subsidiary (WOS) – Private Limited Company

Best for: Startups, tech companies, product manufacturers, B2B services
Avoid if: You want minimal long-term presence or test-market entry

✅ Full control
✅ Can raise funds in India
✅ Eligible for most licenses, banking, and tax benefits
🕐 Timeline: 15–20 working days
💰 Govt. + Filing Costs: ₹15,000–₹25,000
💼 Scribius Legal Fee (Base): ₹19,999 + GST

2. Joint Venture (JV)

Best for: Companies wanting a local partner to share investment, risk, or distribution
Avoid if: You prefer autonomy or lack a suitable partner

✅ Access to Indian partner’s network, licenses, land, or market
✅ FDI benefits in many sectors
🕐 Timeline: 30–45 days
💰 Cost Range: ₹30,000–₹50,000 + due diligence & agreement fees
💼 Scribius Legal Fee (Base): ₹29,999 + GST (Excl. JV agreement drafting)

3. Liaison Office (LO)

Best for: Market research, brand building, initial presence
Avoid if: You want to generate revenue from India

✅ Easy to set up under RBI rules
❌ Cannot earn revenue in India
🕐 Timeline: 4–6 weeks (RBI approval mandatory)
💰 Govt. + Filing Costs: ₹15,000–₹20,000
💼 Scribius Legal Fee (Base): ₹24,999 + GST

4. Branch Office (BO)

Best for: Export-import, technical services, or on-site execution
Avoid if: You're a SaaS/startup without offline delivery

✅ Can earn revenue
✅ Useful for large parent cos with global contracts
🕐 Timeline: 5–7 weeks (RBI/FIPB approval required)
💰 Costs: ₹20,000–₹40,000
💼 Scribius Legal Fee (Base): ₹29,999 + GST

5. LLP (Limited Liability Partnership)

Best for: Small services-based ventures or low-cost entities
Avoid if: You want VC funding or foreign shareholding (subject to FDI restrictions)

✅ Flexible operations
❌ No equity shares
🕐 Timeline: 15–20 days
💰 Costs: ₹12,000–₹20,000
💼 Scribius Legal Fee (Base): ₹14,999 + GST

Part 2: Product Registration & Licensing (Overview)

Most foreign businesses in India will need to navigate product registration and related licenses. Here are common categories:

💼 Scribius Starting Fee for Compliance Setup: ₹9,999–₹24,999 depending on product

Part 3: General Compliance for All Foreign Companies in India

Regardless of structure, every foreign business must complete the following:

✅ PAN/TAN Registration
✅ GST Registration
✅ Import-Export Code (IEC) – For import/export-based businesses
✅ Bank Account Opening (Foreign Exchange Compliant)
✅ Registrar of Companies (ROC) Filings
✅ Foreign Direct Investment (FDI) Reporting via RBI FIRMS Portal

💼 Scribius Starter Compliance Package: ₹17,999 + GST

Part 4: Specific Considerations Based on Your Country

United States

• DTAA (Double Taxation Avoidance Agreement) in force

• No restrictions on WOS setup

• Indian tech park benefits available

• High scrutiny on data processing (for SaaS)

United Kingdom

• Similar legal frameworks make transition smooth

• UK Ltd. companies easily qualify as parent cos

• Prefer LLPs only for consulting services

European Union

• Need to review sector-specific tariffs and trade classifications

• Germany & France-specific technical standards may affect product-based companies

Australia

• FTA benefits on certain goods

• Trade-specific GST exemptions for some exports

• Well-established Indo-Australian business councils for support

MEA (Middle East & Africa)

• UAE parent firms entering via Dubai are common

• Consider liaison or JV if you lack a strong delivery network

• Currency declarations and FIRC compliance are key

Part 5: Common Business Categories and Their Legal Readiness

Final Thoughts: Enter India the Right Way

Entering India as a foreign company is a high-opportunity, high-compliance game. The right structure, correct documentation, and efficient licensing is the difference between a successful market entry and months of wasted time and money.

Scribius Legal helps foreign companies enter the Indian market faster, safer, and 70% more efficiently than traditional law firms. We provide flat-fee legal onboarding, custom entity structuring, product registrations, and all post-incorporation compliance, bundled in one transparent package.

📞 Book a Legal Market Entry Strategy Call

Want a legal setup plan tailored to your country, product, and business structure?
👉 Schedule a Consultation or reach us at inquiry@scribius.com