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1. Drug Import Licence in India for the Businesses
There are many different manners in which foreign companies can set up their business in India or
Indian companies can import drug from other countries. People who deal in drug supply are
required to get the licence to accomplish their deals. The licences are supplied after absolute
investigation, research and confirmation from the supplier that they deal in the legitimate business.
However, there are different rules and regulations stated by the regulatory bodies and authorities in
order to allow people as well as businesses to import drugs in India. These licences are the evidence
of their legitimacy towards their business as well as its performance in India.
Drug import licence in India allow the companies to open a liaison office in the country for looking
after their Indian operations, for promoting their business needs and interests, for spreading
awareness about the products of their company along with exploring further opportunities. These
offices are not allowed for carrying out on any business or for earning any income in India. On the
other hand, their all the expenses are borne by the remittances from abroad. Establishing project
offices is also an ideal method for the companies to have their steady business present in the
country when their object is to have a strong presence for the limited period of time. It is essentially
like setting up a branch office utilizing limited purpose to execute a specific project. Normally,
foreign companies that are engaged in turnkey installation and construction, set up their project
office to work in India. Companies engaged in trading and manufacturing activities outside India may
open branch offices for various purposes.
One of these purposes includes representing the parent company or the foreign companies in
different matters in India including buying and selling agents. Performing research in which the
parent company or the foreign company is engaged and further providing this research to the Indian
companies is another purpose in this regard. It also includes undertaking import and export trading
activities. Last but not the least, promoting technical as well as financial collaborations between
Indian and foreign companies are other purposes.
Foreign companies after getting permit to work in India may invest in trading companies engaged
primarily in exports. These trading companies are treated at par with domestic trading companies in
accordance with the trade policy. According to records from RBI, foreign equity up to 51% is
automatically approved to setup trading companies that are engaged primarily in exports.