Expanding into India is an exciting venture for any European company. But before you can tap into this vast market, you must make a critical decision: choosing the right legal structure for your business. The structure you select will impact everything from your tax liability and compliance requirements to your ability to do business.

Here’s a quick overview of common options:

• Private Limited Company (PLC): This is the most popular and recommended structure for foreign investors. It’s a separate legal entity, which means your personal liability is limited. It offers credibility and makes it easier to raise funds or secure bank loans in India.
• Limited Liability Partnership (LLP): An LLP offers the flexibility of a partnership with the benefit of limited liability. It has fewer compliance requirements than a PLC, making it a cost-effective option for certain types of businesses, particularly in the services sector.
• Branch Office: If you intend to represent your parent company’s interests—such as for import/export or providing professional services—a Branch Office can be a suitable choice. However, its scope of activities is restricted by the Reserve Bank of India.

The right choice depends on your long-term vision, business model, and industry.

Ready to take the next step? Contact ABCGOBS today for a detailed consultation on the perfect legal structure for your India expansion.