However, these options are only for limited operations and can at best serve only short term requirements. Foreign companies and foreign nationals can set up liaison or branch offices in India. They can acquire immovable property without prior permission, and remit profits earned in India. A company may also be incorporated in India for business operations. The choice of establishing either a joint venture or a fully owned subsidiary is left to the overseas investor company.
Software is a priority sector and offers attractive incentives to foreign investment.
The first two options are generally not preferred as the entity is not a body corporate and liability is unlimited. A limited company incorporated under the Indian Companies Act is the preferred choice. Companies are usually incorporated with limited liability by shares. They can be classified as private limited or public limited companies. Two persons can form a private limited company.