With one of the fastest-growing economies in the world and a population in the billions, India is a market that businesses can’t afford to ignore. However, the Indian state is known for its bureaucracy, and there are a number of hurdles you need to overcome before you can get your new business up and running.
When you start a business in India, it’s always worthwhile having professionals such as INS Global on hand to guide you through the system and make sure you’ve got everything set up correctly. Setting up a business in a foreign country is never easy, and it’s much better to know you’ve done everything by the book.
Here are 5 points to think about before starting your business in India.
Do Your Research
Just as with any business venture, you have to do your research. The best business decisions are backed up by solid planning, and you don’t want to make this decision lightly.
India has huge resources and a massive market, but it takes careful planning to be able to make the most of it. If you’re not prepared to do business in the country, then there are lots of rules and regulations that can catch you out.
Make sure you’ve planned for all eventualities by carrying out thorough research.
Take Care of the Legal Side of Things
As we mentioned, India is known for its bureaucracy, and if you’re not planning ahead when it comes to taking care of the legal side of things, then you might find you run into many roadblocks.
Registering your company name, trademark, GST, and opening a bank account are all processes that can take time but are important for you to start doing business.
If you’re going to be employing workers from outside of India, then you need to be aware of the work visa requirements.
Foreign workers must meet a minimum earning threshold of approximately $25,000 per year (INR 1.75 mil) to qualify for the visa. The time it takes to apply for the visa can vary, with a visa for a US citizen taking roughly 30 days.
Foreign workers residing in India must be taxed on their income, salaries, reimbursements, wages, cash compensations, and allowances. Tax rates vary depending on the amount of pay, and your business needs to comply with these regulations.
The standard working week in India is 40 hours with a holiday entitlement of between 12 and 24 days and nine days of public holiday. However, India is a huge country and one that is culturally diverse, so these holidays can vary greatly between different areas.
It’s important to bear in mind the cultural and religious diversity of the country and make sure your business is flexible enough to deal with this.
India offers many different opportunities for new businesses, but like any opportunity, some challenges need to be overcome. Understanding the makeup of the country itself is a great way to start.
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