Forms of Entry

DISTRIBUTOR / IMPORTER

It is recommended that if you choose to grant exclusivity to a distributor, this is limited to a specific geographical area (either by specific States or by geographical areas).


Management of customs procedures: Consider the possibility of it being the re- sponsibility of the intermediary, or that it is outsourced to a local freight forwarder.


Brand considerations: What needs to be taken into account?: among others, distribution of the product under own brand or under brand of the distributor, which will depend on various factors (brand recognition, both own and of the distributor, as well as potential competitors, segment to which it is directed, control of the same, possible tariff reductions if the intermediary packages and / or modifies the product in the country, etc.).

REPRESENTATIVE OFFICE / BRANCH / PROJECT OFFICE

UNINCORPORATED ENTITY

They benefit from simpler entry and exit procedures than those applicable for other forms of entry.

With certain exceptions, there is no limit to the implementation of these types of entities, unless an approval is required from the central bank of India, the Reserve Bank of India.



Personnel at destination: it is essential to have staff of absolute confidence, who know the operation and peculiarities of the Indian market and have a large network of contacts. In this sense, it would be appropriate to hire Spanish expatriate staff in the country or local staff with previous experience in the Spanish market.

  1. Representative office: Very limited operating capacity. Only intended to represent the parent company, gather information on market opportunities and promote the company. You are not allowed to carry out any commercial activity directly or indirectly in the country, or generate income.

  2. Branch:It is a step further in the entry of the country, since it allows to perform certain economic activities in the country. The activities allowed are: parent company representation and act as your agent in the country, export and import of goods, provision of consulting services, outsource distributors and producers, among other permitted activities.

  3. Project Office Very specific purpose, limited to the representation of a foreign company during the execution of a specific project (therefore, it has a temporary nature and dedicated exclusively to the execution of said project). Mainly used for engineering projects.
JOINT VENTURE / COLLABORATION AGREEMENT / LOCAL SUBSIDIARY / LIMITED LIABILITY COMPANY

INCORPORATED ENTITY

Entry form widely used by numerous foreign companies, including several Spanish corporations, to approach the Indian market; In addition to being specially rec- ommended in a complex market like the Indian one. It is the only way to enter sectors with limitations on foreign investment.


If finding the right intermediary is relevant, finding the right partner is crucial. Negotiation and signing of the collaboration agreement between the partners: The Indian legal system is part of the Anglo-Saxon tradition, known as Common Law. This implies that it is essential that the parties reflect in writing the scope and consequences of each and every one of their obligations and rights, in the most detailed way possible, without leaving open points or ambiguous interpretation.