India is located in Southern Asia and is bordered on the east by the Bay of Bengal, the west by the Arabian Sea, and the south by the Indian Ocean. Even though it lags behind other developing countries, India continues to provide considerable opportunities for foreign direct investment.
Let’s learn how foreign enterprises can benefit & easily carry out their ambitions after registering a company in India.
- Business familiar law
The Indian Parliament has enacted a number of key measures that assist most industrial sectors. The Goods and Services Tax Bill has made goods transportation in India more efficient. The Direct Taxes Code Bill aims to make tax law more straightforward. The Land Acquisition Bill, on the other hand, will be the most important (and divisive) policy. The Companies Bill, which brings India’s corporate law into the twenty-first century, was also enacted.
- Low operational cost benefits.
There is a noticeable distinction. Infrastructure, phones, internet, labour, compensation, and anything else needed to start a business may all be done at a low cost with several trading partners.
- A Vast Trade Network.
India has a broad network of technical and management institutions that comply with international standards and are backed up by regional and bilateral free trade agreements. High-quality human resources are produced by these institutions.
- A system of comprehensive taxation.
India has a comprehensive network of tax treaties. Moreover, recently the Indian tax system has been modified by the Direct Taxes Code as well as the Goods and Service Tax (GST) to provide ease of doing business.
- A large population is an excellent opportunity.
One of the key advantages of beginning a business in India is that it has a vast population and a large market without boundaries with well-established logistics. For decades to come, India’s young population and expanding economic strength will be a magnet for global enterprises.
- Indian youth, their work ethics, and their socioeconomic status.
Youth have come out of the closet and are now looking for chances due to a combination of hardworking nature and readiness to learn. Businesses may take advantage of this opportunity by creating jobs and improving productivity.
- The Indian financial system aids business development.
If a startup obtains an Inter-Ministerial Board certification (IMB), it will be exempt from paying income tax for three years .Startups are eligible to bid for government contracts. They are not subject to the same “prior experience/turnover” restrictions that apply to conventional firms bidding on government contracts.
- Government initiatives.
Several initiatives have been taken by the Indian government to attract foreign investment in India’s diverse industries. It has periodically implemented numerous appealing plans and strategies to entice investment.
The government is making a number of measures as part of the ‘Startup India Movement,’ which aims to increase chances for FDI and business partnership. Some initiatives have already been taken to assist businesses in dealing with outdated legislation and regulations.
Startup India Movement
In 2016, the government announced the ‘Startup India’ program to ensure that the country’s expanding number of startups get the resources they need to thrive.
- Financial benefits
Patent fees will be refunded to startups in the amount of 80%. This means that if and when a startup files a patent application, the government will assist it by paying the patent defence. Furthermore, the government will reimburse the facilitator’s expenses and assist with the patent application. The procedure of registering a patent and protecting intellectual property rights (IPRs) would be simplified and expedited.
In case of exit – A startup can close its business within 90 days from the date of application of winding up
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.