Define the proposed activity first
“Entering India” can mean selling to an Indian customer, appointing a vendor, investing in an Indian entity or establishing an operation. These are different legal questions. Prepare a short description of what will happen in India, who will contract, where people will work and how money will move. That description makes the initial legal discussion more useful than selecting an entity form in isolation.
Check the investment framework where relevant
The RBI’s Master Direction on Foreign Investment in India should be read with the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and the relevant payment and reporting regulations. The permitted route, sector restrictions, ownership and instrument can matter. A proposed investment needs a review of the actual investor and activity; a general statement about foreign investment does not establish permission for a particular proposal. Source: RBI Master Direction on Foreign Investment in India, introduction and paragraphs 3–4.
Ask separately who will handle banking, valuation, reporting and company documentation. These inputs may require separately engaged qualified professionals. Legal review is one part of the process and does not guarantee incorporation, a filing acceptance or regulatory approval.
Connect the contracts to the operating plan
Identify the agreements needed for the proposed arrangement before treating a template as ready to sign. Questions may concern the contracting parties, scope of services, payment terms, use of confidential information, ownership of work, termination and dispute provisions. A defined review can produce a marked-up agreement or an issues note for discussion with the counterparties.
Keep Indian tax and regulatory questions visible alongside the contract review. The appropriate input depends on the business and transaction; this note does not prescribe a universal tax treatment or set-up checklist.
Illustrative example
An overseas founder proposes to use an Indian vendor and later consider investment in an Indian company. The immediate vendor contract and the later investment should be assessed as separate workstreams with their own facts and documents. This is an illustrative scenario, not a claimed mandate or outcome.
Agree a bounded scope
For an initial discussion, prepare the activity summary, ownership information, available drafts and intended timeline. Identify the Indian-law questions and the other professional inputs needed. Advice on a foreign jurisdiction requires appropriately qualified counsel there. OneHorizon Legal’s work concerns Indian law and India-related matters.