Franchise Registration In India

Franchise Registration In India

According to the region, the policies should be finalized. This will be for targeting specific cities for franchise expansion. Generally, your franchise consultant will be able to guide on this and recommend a few test cities. Ministry of Corporate Affairs is the government body for businesses. Hence, the business needs to be registered under MCA before franchising. 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 have knowledge about regional tax policies. Also if the franchisee is the shareholding 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 minimize the cross border risks.

There are several laws guiding the franchising legal framework in India. This includes the Indian Contracts Act 1872, Transfer of Property Act 1882, Foreign Exchange Management Act 1999, Etc. It needs to comprehend with the assistance from your Legal counsel before starting the Franchise Registration in India.