Franchise Registration In India

Franchise Registration In India

The regional expansion policy should be finalised including specific cities to be targeted for franchise expansion. Generally your franchise consultant will be able to guide on this and recommend few test cities. The Franchisor willing to open a franchise in India needs to be registered with the Ministry of corporate affairs. If the franchisee is from outside India, they can get in touch with international brokers. International franchise brokers will guide them on Licensing, registrations, ownership rights, etc. The franchisor should also be well versed with the taxation applicable to particular country, state or region. Also if the franchisee is share holding company they need to comply with the regulations. Professional accountants will be able to assist the franchisor on this subject. Managing Currency risk is another important area as the Initial investments will be foreign currency but the earnings will be local currency. Certain protection is essential for managing the currency risks. International insurers provide policies which can minimise the cross border risks. The franchising legal framework in India is guided by several laws, such as Indian Contracts Act 1872, Transfer of Property Act 1882, Foreign Exchange Management Act 1999, Etc., which needs to comprehend with the assistance from your Legal counsel before starting the Franchise Registration in India.