A physical existence in India is basic to break into
the country’s developing business sector. However, starting the right kind of
presence can make a difference between success and wasted efforts. Foreign companies,
before entering the Indian market should consider the main points like, assessment
of the total market, their potential buyers and target market, knowing about
your competition, Pricing & product mix, entry options, regulatory
environment, choosing impactful business model and then most important part to
consider is implementation of the business strategy.
India is one of the most
progressive countries across the globe, which has larger potential and an
enormous market with the population of 1.36 billion individuals. According to
world bank’s data, India’s GDP in 2018 was recorded around USD 2.7 Trillion.
Looking at huge market potential
in India, trends reveal that every year the FDI inflow in India is growing due
to the numerous foreign businesses starting their operations in the country and
several favourable changes made in Foreign Direct Investment policy in the last
few years.
Foreign companies invest in India
due to abundance of resource, presence of labor at relatively lower wages and
special investment privileges such as tax exemptions, etc. For a nation where,
foreign investments are being made, it also means achieving technical know-how
and generating employment.

Major Requirements for incorporation of company in India:
To start a company in India, a
minimum of two persons and an address are required in India. A company at least
should have two directors and minimum of two shareholders. According to Indian
rules and regulations, one of the director’s should be both a citizen and as
well as resident of India. In this case, 100% of the shares of the Indian
company can be held by foreign nationals/ NRI. The address in India is served
as the registered office of the company. Foreign companies establish their
offices in metro cities like Delhi, Bangalore, Mumbai and Chennai, etc.
But why India? What are the main advantages of doing business
in India?

- Wholly owned subsidiary- permits 100% Foreign Direct Investment
under the FDI policy.
- Joint Venture- with
an Indian partner, for example, strategic partnerships with Indian partner
organizations
- Limited Liability Partnership
(LLP)- a new arrangement of business structure in India, that combines the
advantages of a company with the benefits of organizational flexibility
associated with a partnership.
- Skilled Workforce:
Highly-rated human capital base.
- Growth Potential:
The world’s largest democracy and the 2nd fastest-growing major economy.
- Healthy Legal System:
Efficient legal and judicial system, improved enforcement of laws.
- Work Ethics:
Professional manner of working and willing to learn.
- Stability of
Government: Political stability is vital to foreign investments.
- Extensive Trade
Network: Trade network backed by regional and bilateral free trade
agreements with numerous trading partners helps leverage investor’s role.
- Competitive Tax
System: Competitive tax regime and comprehensive network of Tax Treaties,
further modified by the introduction of Direct Taxes Code and the Goods and
Service Tax – single tax for the whole nation.
