Dear professionals,
A foreign company wants to store its goods (produced out of India) in Indian Warehouses and sell the same to its Indian customers whenever indian buyers place an order with the foreign company. This will save time and cost of the company in supplying goods to indian buyers. The foreign company donot have any establishment in India (no branch office or subsidiary).
As per the FEMA (establishment of Branch office, Liason office or other place of business) regulations, a foreign entity cannot establish any place of business in India without permission of RBI.
Now under the Free trade and warehousing zones (FTWZ) scheme, Can this foreign company (without opening any branch office etc.) store its goods in the warehouses of FTWZ and then later sold it to Indian buyers (these will be considered as Importers) as and when it receives the order.
As per the SEZ scheme,the FTWZ are considered as Foreign territory for the purpose of Indian laws.
please provide your views on this.
thanks
Malav Shah
