Wholly-owned subsidiary vs. joint venture vs. liaison office — which should a foreign company choose in India?

A wholly-owned subsidiary is a separate Indian company, fully owned by the foreign parent, that can invoice customers, hire staff, and undertake normal commercial activity — this is the default choice for companies planning to actually operate and sell in India.

A joint venture brings in an Indian partner as co-owner, which can help with market access, licensing, or local relationships, but also means shared decision-making and the need for a well-drafted shareholders' agreement to protect both sides.

A liaison office is the lightest-touch option — it can promote the parent's business, gather market information, and act as a communication channel, but it cannot generate revenue or sign commercial contracts in India, and every expense is funded from abroad.

Most foreign companies planning genuine India operations — not just a market-research presence — go with a wholly-owned subsidiary or a GCC structure rather than a liaison office.