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India is the Seventh Largest Country in the World, having 28 states and 8 Union Territories. Working in India requires a step by step approach i.e. starting business from the most suitable state and then expanding to other regions.
Before investing a high capital, Corporate can first explore the market response in a particular geographical area.
Infotax can provide representational office facilities across India ,which will help you understand the market and accordingly decide to expand in India.The representational office can provide all the Front & Back end support services, ranging from Sales promotion,CRM to Vendor Management.
The following will be the key highlights:
We provide guided Industry tour for better understanding of Industry to Foreign companies who are interested in Indian Partnership for any Manufacturing/ Assembling/ Trading/ Service activity.
Market Entry Strategies mean the way by which Foreign Corporate wants to work in a Country. Choosing the right Entry Strategy is crucial to succeed in India. India offers many types of models to a foreign company and every model is suited for a particular kind of business and the mind frame of promoters/owners of the company.
Few of the models which are generally chosen by the Corporates are:
This is suited for starting with a small investment and providing sales support services to Head office.
Under this structure, the company establishes a local presence through a subsidiary or branch office, rents or buys office space and hires staff (could be just one person).
Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:
Entry Strategy is suitable for Manufacturing Entities or where the investment plan is large. An Indian company is incorporated under the Indian Companies Act 2013, where in the Shareholders and Directors can be Foreigners subject to certain limitations.
In this strategy a small space in a metro city (usually in a co-working space) is taken for being physically present in India where a representative of company (Foreigner or Local) usually coordinates with all the stakeholders.
Under this model, instead of creating an altogether new setup, an existing company already doing business in India is acquired through change of shareholding. This is suitable where the Foreign company is looking for an experienced company in the same line of business who is willing to sell ownership or do merger with Foreign Company for potential Synergies.
Under the Indian Law a Joint Venture is governed primarily by the Indian Contract Act. However as a Joint Venture involves several aspects and other corporate laws are also applicable. In such a case if the foreign investor wants to enter India it has to source an Indian partner for doing business in India. This model is suitable where there is a requirement to work in India for a particular Project or a defined timeline.
The Franchise model is suitable for companies who are targeting B2C (Business to Customer) market. It is suitable for Companies who are into retail food chain, providing retail chain based services. The Franchisee bears the initial cost of establishment and bears the working capital costs. It operates under the Standard Operating Procedures (SOP) of the Franchiser and gets a fixed percentage from the revenue generated.
Finding distributors for your products who can sell in the Indian Market is the easiest way to export in India.This model is chosen for the simplicity it offers as the distributor buys the products giving advance payment to the Company and later sell the product as per the demand in the market. This makes sure that the liquidity is maintained in the hand of Foreign Corporate. Infotax offers many models to find distributors in India. Refer to our “Find Distributor” section.
In this strategy, a popular brand in a foreign country can enter into Indian market by doing manufacturing in India through a Job worker who already has a manufacturing establishment and can manufacture as per the design and specifications provided by the Foreign Company. The Brand of Foreign Corporate is Embossed in the product. It is a popular way to do business in India. The marketing activities of products are directly handled by the Foreign Corporate.
While planning to expand your operations overseas or looking for a new office property in a different location we can help you locate office properties across India. Our services are designed to fit your needs our network of property specialists would work on the rest of it.
Copyright @ 2020 - InfoTax Suvidha Private Limited
Website Designed & Developed By Tarasaka