Market Entry and Investments

Market Entry and Investments

We have a dedicated team of advocates and strategy consultants who advise multinational corporations, sovereign wealth funds, high-net-worth individuals and NRIs on entering and investing in India, especially in the State of Telangana, with a focus on the regulatory and compliance side of market entry.

We have assisted in facilitating government collaborations and have advised corporations in the UK and the Middle East on policy and regulatory frameworks in India. Through our associate offices, we also assist with market entry and investments in the United Kingdom, Saudi Arabia and the United Arab Emirates.

Ways to enter the Indian market

• Wholly owned subsidiary – an Indian company owned entirely by the foreign parent, where the sector permits it.
• Joint venture – an Indian company held together with a local partner, governed by a joint venture or shareholders’ agreement.
• Limited liability partnership – available to foreign investors in permitted sectors, subject to conditions.
• Liaison, branch or project office – a presence without a separate Indian company, with activities limited to what is permitted and subject to approval and reporting.
• Contract-based entry – distribution, franchise, licensing or technology agreements with an Indian business, without setting up an entity.

Foreign investment rules in outline

Foreign direct investment into India is governed by the foreign exchange law and the Government’s FDI policy. Most sectors are open under the automatic route, where no prior approval is needed. Some sectors require government approval, some have a cap on foreign ownership, and a few are closed to foreign investment. Investments from certain countries need prior government approval whatever the sector. Once funds are received and shares issued, filings must be made within set time limits.

Setting up in Telangana

Telangana offers a single-window system for industrial approvals with defined timelines, along with sector policies for areas such as information technology, life sciences and manufacturing. Establishing operations typically involves land or premises, state-level approvals and registrations, and local labour law compliance. Our base in Hyderabad allows us to guide investors through these steps on the ground.

What we do for investors

1. Feasibility. Check whether the proposed activity is permitted for foreign investment, and on what conditions.
2. Structure. Advise on the most suitable entry route and the agreements needed with any local partner.
3. Set-up. Assist with incorporation, registrations and approvals.
4. Investment documentation. Draft and review share subscription, shareholders’ and joint venture agreements.
5. After entry. Support ongoing reporting and compliance.

Common questions

Can a foreign company own 100% of an Indian company?
In many sectors, yes. In others there is a limit, or prior approval is required. The answer depends on the precise business activity.

Is a local partner or resident director required?
A local shareholder is not required where full foreign ownership is allowed, but an Indian company must have at least one director who is resident in India.

Can profits be sent back to the parent company?
Generally yes, subject to payment of applicable taxes and compliance with foreign exchange rules.

See also Corporate Advisory, Regulatory and Compliance and Real Estate Law.

This page provides general information only and is not legal, tax or investment advice. Please contact us to discuss your specific matter.