Doing business in India - Entry strategy

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Unlock Growth in One of the World’s Fastest-Growing Economies

India’s dynamic economy, driven by a youthful population, expanding domestic demand, and pro-business reforms, makes it a top choice for foreign investors. If you’re asking yourself, “should I invest in India?”, the answer lies in understanding how to navigate the regulatory framework and choosing the right India market entry strategy.

At FEMABIDE Advisorz, we help foreign businesses evaluate, plan, and execute their entry into the Indian market—compliantly and effectively.

Why Invest in India?

India offers a compelling business environment:

01

Rapidly growing economy with 1.4 billion consumers

02

Competitive and skilled labor force

03

Government-backed liberalization of foreign investment norms

03

Strong diplomatic and trade relations

04

Vast digital infrastructure and innovation hubs

With these advantages, doing business in India has become a viable and lucrative opportunity for global businesses across sectors.

FEMA Compliance – A Critical Requirement

Any investment or transaction involving:

Foreign exchange, or a change in assets/liabilities (including contingent liabilities)
In India of a person resident outside India (or) outside India of a person resident in India

must adhere to the provisions of the Foreign Exchange Management Act, 1999 (FEMA), governed by the Reserve Bank of India (RBI) through Authorised Dealer (AD) Banks.

FEMABIDE Advisorz ensures full compliance with FEMA regulations, reducing risk and avoiding penalties for foreign investors.

FDI Prohibited Sectors in India

Not all sectors are open to foreign investment. According to FEMA regulations, FDI is prohibited in the following sectors:

Lottery business (including online, private lotteries and government)
Gambling and betting (including casinos)
Chit funds
Nidhi companies
Trading in Transferable Development Rights (TDRs)
Real estate business or construction of farmhouses
- Note: This does not include townships, commercial/residential projects, roads, bridges, or REITs
Manufacturing of cigars, cheroots, cigarettes, and tobacco products
Sectors not open to private investment such as:
- Atomic energy
- Railway operations

Also, foreign technology collaborations in the form of licensing, franchising, or management contracts are prohibited for lottery, gambling activities and betting.

Entry Routes for Foreign Investors in India

Foreign companies or persons resident outside India can begin operations in India through one of the following methods:

1. Liaison Office (LO)

Acts as a communication bridge with the parent company. No commercial activity allowed.

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2. Branch Office (BO)

Allows for commercial activity in India in specified sectors. Requires RBI approval and FEMA compliance.

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3. Project Office (PO)

Ideal for executing specific projects in India. Set up under FEMA’s Project Office Regulations.

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4. Incorporating an Entity

You can incorporate a:

Private Limited Company
Public Limited Company
Limited Liability Partnership (LLP)

These entities allow for broader operational freedom and ownership.

This route is ideal for quicker market entry and tapping into existing local infrastructure and client base.

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FEMA & Regulatory Compliance for Each Entry Route

Liaison/Branch/Project Offices are governed under:
- Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016

Incorporation or acquisition is governed by:
- Foreign Exchange Management (Non-debt Instruments) Rules, 2019

Our experts at FEMABIDE Advisorz ensure that all RBI permissions, FEMA documentation, and regulatory filings are managed seamlessly.

Why Choose FEMABIDE Advisorz?

In-depth experience in foreign investment advisory
Expert guidance on India market entry strategy
Complete compliance support under FEMA and allied laws
Representation before RBI and central government for permissions and clarifications
Transparent, end-to-end solutions from planning to execution Whether you’re exploring FDI in India, acquiring a business, or setting up your first branch, we provide actionable insights and regulatory clarity.

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Need Help Deciding Your Entry Strategy?

If you’re still wondering “should I invest in India?”, talk to our experts at FEMABIDE Advisorz. We’ll evaluate your business goals, regulatory needs, and suggest the best way forward.

Doing business in India - Entry strategy

Unlock Growth in One of the World’s Fastest-Growing Economies

Why Invest in India?

01

Rapidly growing economy with 1.4 billion consumers

02

Competitive and skilled labor force

03

Government-backed liberalization of foreign investment norms

03

Strong diplomatic and trade relations

04

Vast digital infrastructure and innovation hubs

FEMA Compliance – A Critical Requirement

FDI Prohibited Sectors in India

Entry Routes for Foreign Investors in India

FEMA & Regulatory Compliance for Each Entry Route

Why Choose FEMABIDE Advisorz?

Reach us

Need Help Deciding Your Entry Strategy?

Book Your Consultation Today

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