Foreign Entities in India usually have the following 4 structures:
- Branch Office
- Liaison Office
- Fully owned subsidiary/ Joint Venture
- Branch Office – It is treated as an Indian permanent establishment of the foreign company and taxed at 40% of profits in India. It is required to comply with the usual requirements of PAN, TAN, annual returns.
- Liaison Office – As it is not permitted to conduct business and earn profits, it is generally not taxed. However, the statutory requirement of PAN/TAN exists.
- Fully owned subsidiary/ Joint venture – It is considered as a tax resident of India and usually charged 30% of revenue with some exceptions
- LLP (Limited Liability Partnership) – It is again considered as a tax resident of India and charged 30% revenue. However, there are no taxes for the partners.
Source: Wikipedia.org and Invest India