Foreign entities looking to set up their business in India are generally confused regarding the type of business vehicle they should choose to start their operations in India. There are majorly three alternatives available in the form of: 1) Branch office 2) Liaison office 3) Wholly owned subsidiary. Given below is a detailed comparison between the different types of business vehicles available in India for foreign entities: Branch Office Liaison Office Private Limited Company Applicable Thresholds 1) Profit Making Track Record during the last five financial years in the home country; And 2) Net Worth of not less than USD 100,000 as per or its equivalent. Note: An applicant that is not financially sound and is a subsidiary of another company may submit a Letter of Comfort (“LOC”) from its parent/ group company, subject to the condition that the parent/ group company satisfies the pre