Are you looking for business expansion across foreign shores? In the past few years, India has become the hottest destination for foreigners to start their business. In today’s date, the Indian economy is standing at the cusp of major disruption offering huge opportunities and advantages for starting a successful business venture. The Indian economy has emerged as one of the major forces in the global economic market having a major impact on global trading. Its huge market base, young population, and growing spending power of large middle-class population have prompted many countries to strengthen their business ties with India. The country celebrates the culture of diversity as it has a strong heritage of welcoming foreigners for the past 5,000 years.
Fastest Growing International Economy
Globally, India is the 6th fastest growing international economy and the Government of India offers a flexible and conducive business environment for foreign companies to set up their offices in India. Besides, it also has a large pool of talented workforce including fresh graduates and experienced professionals in different domains. The blend of attractive foreign policies, skilled workforce, and business friendly environment encourages foreigners to start a business in India. Let’s discuss those 8 great advantages for starting business in India by a foreigner:
Comprehensive Tax System
India has a comprehensive tax system with regular modifications by the expert authorities to increase the ease of doing business. Recently, the Indian tax system has introduced the Goods and Service Tax (GST) as a unified tax system across the country and making the transfer of goods across India easy. It has also eliminated the need for unnecessary paperwork and ease down the logistics operations. In the past few years, the GOI has passed several new bills in the parliament which are beneficial for uplifting various industrial sectors. The Direct Taxes Code Bill has cleared the tax laws. Even the government has put various efforts in passing the Land Acquisition Bill as well as the Companies Bill which has updated corporate law for the 21st century. These business-friendly laws have encouraged the foreign players to mark their entry into India.
Low operational cost
India offers the advantage of low operation cost as compared to many developed economies such as Japan, US, Europe etc. The cost of major operation elements for setting up a business such as office infrastructure, internet, phone lines, skilled workforce, labor etc. is available at a lower cost. The tax strategies and flexibility of business laws are also moderate which makes ease of doing business cheap and easy.
Strong base of English-speaking population
The country has a strong base of English-speaking population. A major percentage of schools have English as the base language. Also, India has major business ties with many countries such as UK, US, Europe, Japan, etc. hence communication becomes easy and effective. Also, there is no denial about the intense historical ties between India and the UK signifying that Indians have a high level of English. It is a major advantage for foreigners thinking of setting up a business in India. The accent may be slightly different from the UK or US-based English however the graduates are fluent in speaking the language. Also, they are well-verse in local languages providing the advantage of doing business easily in various regions. The advantage of no language barrier makes India an attractive destination for doing business with International companies.
Government’s initiatives
The Government of India has taken a series of commendable initiatives for attracting foreign investments from various business sectors. It has time and again announced attractive schemes to lure foreign companies for setting up a business in India. Besides the central government, different regional governments also offer lucrative policies for attracting foreign investments. The Foreign ministry has taken various initiatives for strengthening business ties with many countries. Also, the different ministries have made exclusive attempts to ease rules and regulations for smooth business operations.
Startup movement in India
The Government of India started the “Startup India Movement” to encourage unique business ideas and new-age entrepreneurs for setting up their businesses. It also introduced several reforms to attract Foreign Direct Investment (FDI) and foster business partnerships. Redundant and outdated policies have been replaced by simple and encouraging ones, focused on creating a favorable environment for business development & growth. These reforms are also aligned as per the parameters of the World Bank’s ‘Ease of Doing Business’ index for improving India’s ranking and attracting more FDI.
Indian work ethics and working class
Indians are admired for their great work ethic across the world and its population is hard-working by nature. The never say no attitude, willingness to learn new things, and multi-tasking ability sets them apart from their South Asian counterparts. A huge part of the population falls under the working age group of 18-65 years adding higher years of serviceability as compared to many other countries with the growing concern of aging population. Businesses can leverage this amazing opportunity to hire a young and dynamic workforce for their operations in India.
Vast Trade Network
India comprises a vast network of technical and management institutes offering high-quality education backed by international standards as well as bilateral free trade agreements with various countries. These institutes also receive the requisite help and resources from the government and develop corporate-ready excellent human resources.
Well regulated financial system in India
The country boasts of an excellent financial system with complete access to developed markets across the globe. It has a great rapport with various financial institutions for receiving investments as per the rules and regulations of RBI.
Why Infotax group is the first choice for foreigners Infotax is a leading online finance and tax consultancy providing complete guidance and end to end management of all the legal paperwork and compliances required for setting up your company or it’s subsidiary in India. The company has hands-on experience of working with natives of different geographies and well-versed with foreign laws.
