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Setting up business
in India
If you are toying
with the idea of setup business in India, you
should go ahead straight away. Many business
owners harbor age old reservations when dealing
with India. To their amazement, they find that
their doubts and fears are mostly unfounded. Ever
since India opened up her economy and walked the
path of liberalization with reforms, there has
been a change in perception. The reality on the
ground is that, it is the best place to do
business in South Asia. If you are questioning
your self about how can I start a business in
India, then you have come to the right place.
Stable democracy and
English language helps
Why would you set up a business in India in the
first place? The country is home to a large
population and the real purchasing power, the
middle class, is large enough to outnumber the
total populations of many western nations. You
have a captive and ready market for your products
or services as the middle class has been the real
instrument of growth in the last two decades.
India is stable and one of the largest democracies
in the world while English is a major language. It
has systems in place that are more tuned toward
western businesses as India was under British rule
for more than two and a half centuries.
According to a World
Bank report 2008, it takes just 33 days to set up
a business in India while closing takes 10 days.
You would require to go through 12 steps to start
a business in India and with single window
clearances in place, you can easily get it done
fast. The situation is more flexible and investor
friendly than ever before. Nowadays, it is easier
for non resident Indians, foreigners and a foreign
company to set up a new business in India.
Major checklists for starting up
Among the major
checklists for setting up a business in India are
getting a PAN card that can be obtained from:
PanCardNri.com
or the Income Tax department of India. It is a
sort of a social security number that helps the
government track all financial transactions.
Before setting up, you can contact us and we can
provide you with the legal services of a good
lawyer and accountant for getting the contracts
done if you are looking for a business partner.
There are some restrictions for non resident
Indians and they cannot invest in agriculture,
real estate and the print media sectors, whereas
there are other legalities involved for foreign
entities who wish to form a foreign subsidiary
based in India or want to start a fresh company
here.
Over the years, FDI
or foreign direct investment has been liberalized
to make the business atmosphere more investor
friendly. Guidelines are more streamlined to help
the investor set up businesses faster. You could
invest as a foreign investor in a joint venture
company in India, set up a holding company that
could deal with investments or set up a subsidiary
with nearly 100% foreign shareholding.
With procedures being
more transparent than ever and guidelines more
simple and easy to follow, the FIPB or the Foreign
Investment Promotion Board provides hands-on help
in speeding up your proposals. They function under
the Ministry of Finance, India and you could visit
the website of the FIPB.
As a foreign direct investor (FDI), you cannot
make investments in betting or gambling,
lotteries, agriculture, print media, postal
services and broadcasting. You can avail of the
automatic route toward 100% investment in most
sectors except where you might require approval of
the FIPB for acquiring industrial licenses. There
are some industries reserved for the public and
small scale sector while others require approval
from the Indian government like civil aviation,
telecom services, defense and petroleum for
automatic 100% investment.
Quick transaction
facilities for setting up a business in India can
be availed from FIIA or the Foreign Investment
Implementation Authority, functioning under the
Commerce Ministry.
An
Indian research shows that the future India
business prospects looks very promising and
raising business finance, loans and debt equity
would become more and more easy with time. On the
same lines India is considered as an emerging
business market and business development in such a
global India is lucrative. There are various
business opportunities available in the sectors
like: business industry, retail, manufacturing,
export and import and marketing. The India growth
story is hitting highs with every day passing and
its now obvious to many foreign investors that the
business scenario in India has changed providing
various tax advantages.
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