With the Indian partners joint venture with foreign companies can establish their operations in India by enhancing strategic alliances with partners of India. The joint venture may enhance the following benefits for a foreign investor with setting up marketing and distribution establishment of the partners in India, setting up Indian partners’ contacts which help smoothen the process of establishing of wholly owned subsidiary companies operations and available financial resource of the partners of India. Foreign companies can also establish wholly-owned subsidiary in sectors where 100% FDI is allowed under the policy of foreign direct investment (Chan, 1984).
For incorporation and registration the application has to be filed with ROC (Registrar of Companies). Once the company has been incorporated and registered duly as an Indian company since it is registered to the regulation and laws of India as applicable to other domestic companies of India. The foreign companies can establish their Indian operations through project office, representative and liaison office and branch office. Such offices can enhance any allowed tasks. The companies have to register themselves with ROC (Registrar of Companies) within 1 month of establishing business place in India.