Doing business in India

Hi

Yes foreign investment is Welcome in India.

Its not complicated to open a company in India by foreign Nationals or a foreign company wanting to open a subsidiary. You need 2 Directors that is needed.

Time taken to open- 25 to 28 days if on fast track meaning ur initiative is on full trottle & the documents needed are provided by you like -click click...  otherwise say 40 to 45 days.

Also depends on what you want to do here- some sectors have some restrictions of some kinds like say limitations of maximum foreign holding percentages in equity of the company... & the like....

another example- or a prohibition if you are from Pakistan.... so any sector that has some kind of restriction means burocracy a.k.a. redtape.... meaning more time....

But since India has been opening up, now there are very few things left in the negative list & most are on automatic route...

Your need would be IT Sector i.e. information technology sector (don't ask me how I guessed it) & 100% participation by foreign entity is allowed in that sector.

Rate of corporate tax is a complicated thing just like in any other country & you require tax consultants for the same, but briefly & broadly its :-

About 32.5%  but thats not the whole story as you are allowed various exemptions just like US & numerous other countries....

Now However many exemptions you might be entitled to, but still you have to pay some minimum corporate tax which in India is called - "Minimun Alternate Tax"

& generally you can take the rate of between 18.5% to 19.5% as the applicable  MAT for you depending on your circumstances....



--- yes it is absolutely easy to recruit people here, incase you are employing ppl, its best to employ on "contract" basis rather than a full scale employee if you are not a big MNC as that insulates you from many kinds of harrasment if the employee turns out to be a trouble monger or a clever mischief maker, (which is not at all a difficult situation for big MNC's to handle but can be taxing for a small entrepreneurial venture) again consult very very good labor law expert for your "contract document for emplyees"....


This is all you can get without absolute professionals now sitting with you across the table with your specific requirements & project specific needs & legislations (laws)...


If you have to open a company here, You'd need the services of a professional consultant (who has experience of opening for foreign entities also, as in that case he would be faster in his work & waste less of your time).

There are 3 kinds of professional consultants engaged in this sort of work-

1.Lawers (includes law firms)

2. Chartered Accountants (includes C.A. Firms)

3. Some Company Secretaries (very few, you can count on your number of fingers in your hand for all of India)


Now Lawers are most expensive & are given to coming up with hidden costs at the last minutes ot each stage... again if it was a large MNC, their needs are different so they go only through law firms (team of lawers from home country in touch with team of lawers here & so many dynamics at play)

But since you are asking here in this forum & with such general query, so I guess its a small entrepreneurial individual making a query & so
I give my views accordingly....  so big law firms are out. Now for small lawers there is an ideotic thing i have encountered time & again-  they have a tendency to market themselves as capable of doing jobs of "any field" involving law or having an associate who knows....  ;-) & its always a minesfield to get that job done if the job is not a regular thing he is doing or even if it deviates a little from the beaten track he's used to going on everyday....

CA's are real professionals here in India (the ones who are not without work- which would mean they never worked hard) they'd try to keep their word. Not try to fleese you with hidden extra costs etc. & would be reasonable in their charges.

Company secretary would be cheaper than a CA if he has experience of this sort of work. He'd be cheaper because of simple demand/supply equation prevailing for Company Secretaries. But YOU HAVE TO SEE THAT HE HAS EXPERIENCE of opening up COMPANY For FOREIGN ENTITY.


Hope the above helps you or anybody else wanting to open up a Company in India.



Wish you all the best for your entrepreneurial Initiative in India ! Hope you flourish & tell others how wonderful it is to business in India once you get to know-  how simple it is to get things done in India "the way Indians do..."

Have a nice day!

& further if I remember correctly, the average corporate tax paid by of all the companies put together in in India as a ratio of their book profits has ranged between 19% to 22% & has been slowly climbing.... there's always debate in media & other discussion forums as to wether that's because of continuous shrinkages of available deductions that its climbing or because of introduction of MAT & its continuous raising? (MAT was 10% when it was introduced for the 1st time sometime within abt 10 years.

What kind of business,would u like to do.
in which State.
Money power rules India.
its just the right person should be there
with u
bye

thanks for your posts !

Hi Juliene
India welcomes foreign investors. However, beurocracy can be quitediscouraging here. Therefore, you will need some expert help in various matters so that you can concentrate on your core issues.
Rgds
Pramod

Dear Friend,

You are welcome to invest in India but subject to certain restrictions. Please visit the websites of Govt of India.An Act called FDI is waiting in parliament where you can own more than 50% share in India. We are expecting it to be cleared shortly as our National Budget is on 16th March.

I had been to USA for a year and found good prospect in US itself.  I may be setting up a unit. Negotiation is going on as I have to be provided a proper visa by the investors. This is just for your information.

With best wishes

Subroto Sarkar

PS: My blog kittuselfemployment.blogspot.com.

@Sarkar subroto:

Dear Bangali Babu,
The pending bill in Parliament you are refering to relates to the FDI "Only" in Retail Sector, & the ongoing Debate is focused primarily on allowing bigger equity stake in Multi-Brand Retailing by foreign entities.... to the best of my knowledge.

There are many many many Numerous Sectors of business where 100% ownership by foreign entity is already allowed under automatic route....

Dada I hope you update yourself.


One thing more I woul Loooove to ask you Dada, & an honest answer from your esteemed self on this-

When your fellow famous Bangali brother wrote that book (& got a "Award" for & made million on...) - "The Argumentative Indian" & painted all of us Indians with the same negative brush, was'nt he refering "Primarily" to his experiences as recieved by him interacting with fellow Bangalis ???

Because the way rest of Indians do conduct themselves in business & Seminars is quite Different from the Argumentative Bangli brothers.... I have seen on numerous occasions them argueing just for the sake of arguements.... & I have heard 1st hand from MNC executives & even fellow Indians as to how difficult it is to do business in West Bengal, how frustrating & moribund their red tape is.... & how every possible hardship is created by even Local population insensitive to the risks involved with an entrepreneur's energy /money/time....

I mean the blame should rest on tbe Head of the deserving...., & not on "all" of the Indians who are primarily Hard Working & not prone to unnecessary Argumentative Behavior as our fellow Bangli brothers simply Loooooove to engage in at the drop of a hat almost in any forum....


I hope you take above in right spirit & atleast help clearing some muck heaped on us rest of the Indians too by one of your brotheren. (& making millions of Dollars for throwing that muck at us....)

:-)

Have a nice day !

Well what babu I do not know you are but your over statement is a bit noisy. I am trekking the villages of west Bengal. Listed out 1600 items which can be commercially exploited. Brought in investors from west and work has started. I do not encourage those ill headed MBA sons of rich man writing jumbling English to show their power. Your assement and using insulting language shows your lack of capacity and courage to breaak the shackles. It is true that Bengalees argue due to their over education but it is the same benglee which produces highest amount of food items in agriculture. Since you have no knowlege about this agro based economy you have dared to make such insulting knowledge Mr. non bengalee babu.

Bengal is situated in the fertilest most soil of the wrold which your MBA' s will not know as they do not cultivate with their own hand. Since you all looks and boot polishnwest you have lost contact with soil. Here agro based industry needs to be set up. You MBA do you know that 60% of the vegetables grown in Bengal gets rotten. These can be save by usin Nitrogen gas. I had been to USA for quite sometime saw it and bringing the technology here. DO you know that rice and jute if it is soaked for 21 days in water it can with stand flood. You do not know. Your industry based mind will not know. But this Bengalibabu knows it and implementing it.

Now who am I? Read my blog kittuselfemployment.blogspot and will know. I do not wer tie and coat and talk big abusing others I do practical. Last 30 years I have done this which resulted an offer to try this in US but Govt of India brought me back to implement in North East India.

@Sarkar subroto

Standing Ovation to you for validating what I had written in my last post !!

Our Colorful india would be Incomplete without an Argumentative Bangli within us....!!

I hope your post is not deleted or amended for its whole impact for all to see. (All will know by showing the date of edit at the bottom)

I addressed you with best possible word known to us used with "regard" & effection towards a Bangli brother("Dada") in my post replied to your misinformation / misguiding post of 22-2-2012, then how could it be insulting??

You could have seen the humor contained theirin to encourage you to give correct information rather then a misguiding post Pricepally giving Loudely the link to "Your" blog (1of the millions of blogs in blogosphere)....

You could have instead given the correct link of the Government of India site you talked about in your misguiding Post at this forum. It is exacltly this kind of misinformation that the Indian Government & this kind of site (expat-blog) here encourages to keep away from....

But Dada my Bangali brother's principal aim as reiterated in your second post as well sadly is- "I, Me, & My Blog, My Blog, My Blog...."

I can understand your Craving to coax people to visit your Blog (we know you are dying to), but it would have been better in taste if you had given the correct information asked for & not misinformation which is always a tool of the 'incompetent" trying to take gullible investors in to their folds & a Grand Ride (Things like- "since only half equity participation is allowed by foreign entity, so take an Indian native like me as an equity holder.... etc,etc...")

But Patriotic Indians will not allow any such bullshit to go across sullying our country's name when we encounter such, especially by someone who ammusingly by his own admission (of ur 1st post here above) is "Craving" for a US Visa....

No my dear Bangali Dada it will not be allowed, & you have all the right to call it "insulting", "noisy" or any such "accusations" which many of our Bengali brothers simply Looooove to heap on (to hide behind the curtain of accusations) when encountered with a mirror of "Reality" showing their incompetence of issue at hand
(what was the topic of this discussion above? What was your "relevent" contribution?)

You can proudly say as u have said in your post of 24-2-2012 :
" It is true Bangalis argue due to their over education..."

But please learn 1 more education:-
TRY TO GIVE THE CORRECT INFORMATION & RELEVANT INFORMATION AT SUCH FORUMS !

merely learning a foreign language does'nt mean one is educate... for example one might be skilled at French &even learn to be proficiently Habitual Accuser in French, now that does'nt mean he's Educated..., or in German or even say Afghani for that matter....

There's a Vast Difference between "being Litterate" & "being Educated" Dada...

I wish I could show you the fine "Amla" I grow in my fields the seed of which came from a Hard Working Farmer near Saharanpur who developed the Variety by his own hard toil without any foreign help without even any government help, to inspire my Bangali Brothers into shedding their Argumentative Behavior & always accusing others (including the government) of not doing enough...) & instead get on with working hard... & one day you can achieve a Rice yield per Hectare comparable to our Haryana & Punjab who don't have world's best Bangali soil but still produce 75% more per Hectare of Rice compared to our Bangali Brothers lost in their favorite passion - "Argumentative meaningless Confrontations", exporting Trade-Unionism to rest of Indian states.

Which also reminds me Sadly that the Central Government help to the state of West Bangal since independence has been 3 times (per Capita) the National average compared to other Indian states... when our tax payer's money has been Pumped in to Help our Incompetent  Brothers.... & look at what mess they have made dispite all that of our Money Pumped in to West Bangal...

I can understand your antipathy towards MBA's because the course teaches to believing only the "Tangible" & dismiss all non-tangible talks "full of gas" & that would be very frustrating.... I understand & sympathize with you Completely !!

Pull up your socks, pull up your "Work Culture", stop being the Biggest Complainers (in any organisation at any Forum), Work Harder, there is No Alternative to hard work...!!  The Yak-Yakking of tongue takes verrrry little calories & is an escape of a Lazy.... & can "burn up" a lot of Initiatives Created with a lot of hard work...

& & & let the correct information be posted here & relevant information, to help any expat wanting to understand how our Incredible India works.

:-)

Have a Nice Day !

Well to correct. My blog writing is for those who wants to know. I never wrote but sorry to mention here that I was taken away to US to implement my project. How ever I was brought back by an appeal from a reponsible higher up person in India. I have successfully implemented this project in Pondicherry where I stayed for last 30 years . I was brought to Bengal by a group of Bengalee NGO. Center has assured all financial help to implement the project. You might see less terrorist activity in this area because I have sat with them and placed my suggestion which they agreed. If I wanted I would have drum beat and publicise all these. But I did not because I do not want any publicity.

My uncles were hanged my aunties was made naked and paraded by British to free India which we never boast. SO you have mistaken me as publicity stunt., I have refused all honor as I treat myself a foot solder.

Now coming to Bengal your feeling is totally wrong. City based Bengali babus are what you all think. But not in rural Bengal.

They cultivate lands with bullocks they toil and has no idealistic talks. Precisely because of this it taking time to convince them to switch over to commercial crop. The agriculture scientists has 1500 nos and the Horticulture scientists have 18000 nos. Animal husbandry has information of some animals in higher Himalayas whose milk is medicines. Further to this snow fed and rain fed clean water is available in plenty to give a good income. In addition to this handicrafts items in these areas are virgin. I am going to open a sales counter in Atlanta where my son stays. My service is free as fooding and lodging will be taken care of by him. Once the sales pick up I will return back to India deputing some one. Govt of West Bengal is considering this proposal seriously. Let us see.

Considering all these a group of US and Canadian investors visited  me here to have a business deal. Convinced they are now going to invest 50 crores in batches of 5 each. How they will be channelized lawyers at Kolkata will take up whom I am meeting on 5th of March.

That is why I wrote to that person to contact me directly if he is serious where in you entered and joked at me never thinking what the person will feel about us and get confused and change his mind. This breaking the confidence work made me angry and forced me to write all the staffs. I had no other intention behind it.

Lets hope our writing does not have any effect on him.

Good luck

May God shower you with prosperity.

@sarkar subroto

Dada thanx for your Warm & "Positive" wishes !!

May you succeed in your endeavor to eliminate some sufferings & implant many inspirational dreams in rural Bangal with your initiative ! Best Wishes !!

:-)

Good news for foreign investors !

Indian leading Newspaper's front page news on Wednesday:

That Indian Prime Minister makes reforms promise  at G 20 summit Meet in Mexico !

Well the history of this promise is that so many reforms were stuck in the pipeline since many years because of Coalition government at the Center.

1st it used to be the CPM - the communist party ruling in West Bengal that used to stall major economic reforms as it was pivotal in keeping the Central government intact because of coalition government & lateron it was TMC boss the Chief Minister of West Bengal today (Mamta Benergy) who would stall major reforms by threatening to withdraw support to the central government again a loosing preposition for the Coalition government at Center.

But now in a paradoxical dance of the Indian Democracy, she does not matter as a necessory partner in the Coalition government.

& So our Prime Minister has decided to push the pending reforms of Indian Economic & Financial & other regularizations changes.

Keep close watch, good news coming for this Nation of 1.23 Billion hman beings to create new dreams & opportunities !

CHEERS !