India Entry Strategy For Foreign Businesses
Expand Your Business to India with Confidence
Kreston SNR helps International Businesses Establish and Grow in India
India is one of the world’s fastest-growing economies and a preferred destination for global companies looking to expand in Asia’s largest consumer markets. However, entering a new jurisdiction requires navigating regulatory frameworks, tax laws, compliance requirements, and operational challenges.
At Kreston SNR, we support international businesses at every stage of their India entry journey – from strategy and entity formation to regulatory compliance and operational setup.
Our team combines local expertise, international standards, and cross-border advisory capabilities to help global companies establish a strong and compliant presence in India.
Why India?
In recent years, India has caught the eye of investors and entrepreneurs across the globe. The country is one of the most preferred destinations for doing business.
But we understand that foreign companies looking to set up a business in India might face several roadblocks. Our trained and qualified team provides complete handholding to navigate the challenges and expand the operations in the Indian market.
India offers significant opportunities for international investors and businesses due to:
- One of the fastest-growing major economy
- A large and expanding consumer market
- Government initiatives encouraging Foreign Direct Investment (FDI)
- Strong growth in technology, manufacturing, infrastructure, and services
- Strategic access to South Asian and global markets
With the right India Entry Advisory partner, global businesses can unlock India’s growth potential while maintaining regulatory compliance and operational efficiency.
Our India Entry Services
India Entry Strategy & Advisory
We help businesses assess the most suitable entry strategy based on their industry, investment plans, and long-term goals.
Services include:
- India entry strategy advisory
- Regulatory landscape analysis
- Investment structuring
- Entity selection and formation services
- Location selection support
- Industry-specific compliance guidance
Regulatory & FDI Compliance
Foreign investments in India are governed by regulations under Reserve Bank of India and Ministry of Corporate Affairs.
We support businesses with:
- FDI approvals and reporting
- FEMA compliance
- Corporate regulatory filings
- Government registrations
- Compliance with sector-specific regulations
Tax & Structuring Advisory
India’s tax environment requires careful planning for international businesses.
Our tax experts provide guidance on:
- Corporate tax structuring
- Cross-border tax planning
- Transfer pricing advisory
- GST registration and compliance
- International tax treaties and optimization
Obtaining Approvals
Our team helps companies get the requisite approvals from various government authorities, such as the Reserve Bank of India (to set up a Liaison office or branch office).
Expatriates compliance
This includes registration with Foreigners Regional Registration Officer (FRRO), opening a bank account, obtaining a Permanent Account Number (PAN), completing Income Tax registration, filing income tax returns, guiding their tax structure, and much more.
Registrations
Our team walks you through various compulsory registrations, including Import Export Code (IEC), Shop & Establishment Act, Labour Laws, Goods & Services Tax (GST), and more.
Business Advisory & Operational Support
We continue to support international businesses as they scale their operations in India.
Our advisory services include:
- Financial advisory
- Risk management
- Internal controls
- Compliance audits
- Business process optimization
Why Choose Kreston SNR for India Entry Services
Partnering with Kreston SNR gives international businesses access to:
- Deep understanding of India’s regulatory and tax environment
- Integrated services across advisory, tax, compliance, and accounting
- Global support through Kreston Global network in 100+ countries
- Experienced professionals with cross-border business expertise
- A single partner for end-to-end India entry and growth support
- Trusted by International Clients
We don’t just help you enter India – we help you succeed in India.
Start Your India Expansion Journey
Expanding into India requires the right strategy, regulatory clarity, and trusted advisors.
Kreston SNR helps international businesses enter, establish, and scale in India with confidence.
Frequently Asked Questions
India Entry Strategy & Services
What are the best options for a foreign company to enter India?
Foreign companies can enter India through multiple structures depending on their business objectives, investment plans, and regulatory requirements.
The most common options include:
- Wholly Owned Subsidiary (WOS)
- Joint Venture (JV)
- Liaison Office
- Branch Office
- Project Office
Each structure has different legal, tax, and compliance implications. Choosing the right structure is critical for long-term success.
Can a foreign company own 100% of a business in India?
Yes, in many sectors, 100% Foreign Direct Investment (FDI) is allowed under the automatic route, meaning no prior government approval is required.
However, certain sectors have restrictions or require government approval. It is important to evaluate sector-specific FDI policies before entering the Indian market.
How long does it take to set up a company in India?
Typically, setting up a company in India takes 4 to 6 weeks, depending on:
- Type of entity
- Documentation readiness
- Regulatory approvals
- Foreign investment approvals (if required)
With proper planning and expert support, timelines can be optimized.
What are the key compliance requirements for foreign companies in India?
Foreign businesses operating in India must comply with:
- Companies Act, 2013
- FEMA regulations
- RBI reporting requirements
- GST and tax compliance
- Annual filings and audits
- Secretarial compliance
Ongoing compliance is critical to avoid penalties and ensure smooth operations.
What taxes apply to foreign companies operating in India?
Foreign companies in India are subject to:
- Corporate Income Tax
- Goods and Services Tax (GST)
- Withholding Tax (TDS)
- Transfer Pricing regulations
Tax planning and structuring are essential to optimize tax efficiency.
What is FEMA compliance and why is it important?
FEMA (Foreign Exchange Management Act) governs foreign investments and transactions in India.
Compliance includes:
- Reporting foreign investments
- Filing required forms with RBI
- Adhering to sectoral caps and conditions
Non-compliance can lead to penalties and legal complications.
Do foreign companies need a local director in India?
Yes, for company incorporation in India, at least one director must be a resident of India (staying in India for at least 182 days in a financial year).
Can foreign businesses repatriate profits from India?
Yes, profits can be repatriated subject to:
- Payment of applicable taxes
- Compliance with RBI and FEMA regulations
- Proper documentation and filings
Efficient structuring ensures smooth repatriation.
What are the challenges foreign companies face when entering India?
Common challenges include:
- Complex regulatory framework
- Tax and compliance requirements
- Cultural and operational differences
- Licensing and approvals
- Hiring and talent management
Having a local advisory partner helps mitigate these risks.
Do foreign companies need GST registration in India?
Yes, GST registration is required if the business:
- Supplies goods or services in India
- Exceeds prescribed turnover limits
- Engages in interstate transactions
GST compliance is essential for smooth business operations.
How can a foreign company hire employees in India?
Foreign companies can hire employees through:
- Their Indian entity (subsidiary or branch)
- Employer of Record (EOR) services (if no entity exists)
They must comply with Indian labour laws, payroll regulations, and tax requirements.
What is the cost of setting up a business in India for foreign investors?
The cost depends on:
- Type of entity
- Professional and legal fees
- Government fees
- Compliance and operational costs
India remains a cost-effective destination compared to many global markets.
Is India a good market for foreign investors?
Yes, India is one of the most attractive investment destinations due to:
- Strong economic growth
- Large consumer base
- Government support for FDI
- Rapid digital and infrastructure development
What ongoing support do foreign companies need after entering India?
After setup, businesses require:
- Accounting and bookkeeping
- Payroll management
- Tax and GST compliance
- Regulatory filings
- Financial reporting
- Strategic advisory
Continuous support ensures long-term success.
Why should foreign businesses hire an India entry advisory firm?
An experienced advisory firm helps:
- Navigate regulatory complexities
- Ensure compliance
- Optimize tax structure
- Reduce entry risks
- Accelerate market entry
It saves time, cost, and prevents costly mistakes.
How does Kreston SNR support foreign businesses enter India?
Kreston SNR provides end-to-end India entry services, including:
- India entry strategy & services
- Company formation
- FDI and FEMA compliance
- Tax advisory
- Accounting and payroll
- Ongoing business advisory
We act as a single point of contact for your India expansion journey.
Contact Kreston SNR's Team
Partner with Kreston SNR to navigate India’s complex business environment with confidence. Schedule a Consultation Today