What Every Foreign Business Needs to Know about Doing Business with India?
How to Do Business in India,
Multinational Corporations Doing Business in India, American
Businesses in India, Investing in India, Trading with India
India, the world's fastest growing free-market
democracy, presents lucrative opportunities for all types of
businesses - especially USA companies.
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INDIA.... |
- is the world's second largest small car
market
- is one of only three countries that makes
its own supercomputers
- is the fourth largest economy in the
world (measured in terms of purchasing power parity)
- is one of six countries that launches its
own satellites
- 100 of the Fortune 500 have R & D
facilities in India
- has the second largest group of software
developers after the U.S.
- lists 6,600 companies on the Bombay Stock
Exchange; only the NYSE has more
- is the world's largest producer of milk,
and second largest producer of food, including fruits and vegetables
- sends more students to the U.S. colleges
than any other country in the world. In 2007, over 84,000 Indian students
enrolled in the U.S.A.
- Indian pharmaceutical industry is the
world's second largest after China
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The Indian market with its one billion plus
population, presents lucrative and diverse opportunities for USA
Companies with the right products, services, and commitment.
India’s GDP, growing at 8.7%, makes it one of the fastest
growing economies in the world and the second fastest in Asia.
India has potential for a sustained growth of 8-10% for the next
couple of years. Now is the time for U.S. companies to enter
the rising Indian market.
Does your company have an India strategy? Does
your company have a plan about how to do business in India? Does
your company knows what is the best way to enter India? Does
your company know what corporate structure is best suited for
your requirements in India? Does your company know what
corporate entities are available for doing business in India?
Does your company know what approvals are required before
investing in India? Does your company know what kind of joint
venture partner is good for your company? Does your company know
what are legal requirements of doing business in India?
Steps for Foreign Investors Doing Business with
India
For a foreign Investor planning to do business
in India it is very important to choose a right kind of business
or corporate entity which best suits its purposes and takes care
of liability issues and tax planning issues. Foreign Companies
planning to do business in India should pay special attention to
Entry Strategies in
India for Foreign Investors and corporate structuring to
save taxes to the best extent allowed by laws and international
tax treaties.
It is also mandatory for foreign investors or
foreign shareholders, both individuals and corporate
shareholders, to seek
Government
Approvals for Investing in India In some special cases
Foreign Investment
Promotion Board, FIPB Approval for Foreign Investment in India
is required. In other cases
Reserve Bank of India, RBI Approvals for Foreign Investment in
India is required. The sectors where RBI Approval for
foreign investors is available under automatic route can be
found at
FDI in
India Sector wise Guide.
There are various steps required to establish a
business in India, before and after incorporation, as mentioned
hereinafter. See the
Procedure for Formation of Company in India. Also see
Mistakes USA Companies
make while Doing Business in India
Business Etiquettes in India
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Do use titles to address your Indian
counterparts, such as “Professor” or “Doctor”. If he/she does
not have a title, use “Mr”, “Mrs”, or “Miss”.
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Do wait for a female business colleague to
initiate a greeting whether it is verbal or physical. Indian
men do not generally shake hands with women out of respect.
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Do remain polite and honest at all times in
order to prove that your objectives are sincere.
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Don't be aggressive in your business
negotiations – it can be interpreted as a sign of disrespect.
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Don't take large or expensive gifts as this
may cause embarrassment. If you do take a gift make sure you
present the gift with both hands.
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Don't refuse any food or drink offered to you
during business meetings as this may cause offence (sample
small portions at least). In addition, it is useful to keep in
mind that traditionally, and religiously, majority of Indians
are vegetarians and do not drink alcohol or smoke.
Also see
Mistakes USA
Companies make while Doing Business in India
How to Do Business in India Successfully
Key factors to doing business successfully in
India include: finding right law firm which has knowledge of
local laws and regulations as well as USA regulatory
requirements; finding good local partners; good planning;
aggressive due diligence and follow up; and patience and
commitment.
How to do Business in India?
In a diverse and complex country like India,
it’s difficult to impart generic conclusions that could be used
by those wanting to do business here. Regionalism, religion,
language and personal values are all factors that need to be
taken into account when doing business in India. Behavior,
etiquette and approach are all modified depending on whom you
are addressing and the context in which they are being
addressed.
No matter what the industry is, foreign
businesses should expect some degree of differences in business
norms in India. Included below are some basic business and legal
points which are helpful for foreign companies doing business
with India: Doing Business in
India for Foreign companies - Free Guide |
Incorporating company in India |
Procedure for Formation of Company in India |
Formation of Subsidiary in India | Starting a Business in India |
Opening Branch in India | Tax Rates in
India | Withholding
Tax Rates For Foreign Companies Doing Business In India Under
The Tax Treaties |
Joint Ventures in India |
FDI in India Sector wise Guide |
Cyber Laws of India |
Corporate Compliance in
India |
How to Outsource Successfully |
Investing in Stocks & Mutual Funds in India - Foreign
Institution Investors in India |
Outsourcing to India |
Government Approvals for Investing in India |
Entry Strategies in India for Foreign
Investors |
FIPB Approval for Foreign Investment in India |
RBI Approvals for FDI in India |
Mistakes USA Companies
make while Doing Business in India
US and Indian Corporate Compliance Programs
The US Companies or American Companies who do
business overseas have to comply with the US laws regarding
foreign investment including US Foreign Corrupt Practices Act.
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IT
is mandatory to set up corporate compliance programs including cyber law
compliance program. If you company does not have the compliance program,
then contact us to help you set up one for you.
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In addition, all the Multinational Companies
Doing Business in India have to comply with the corporate
and other laws of India including cyber law compliance.
The cyber law mandates all companies to have an
information technology security policy. This documents the
architecture of the network, the roles and responsibility of
employees, security parameters and authorization required for
data access, among other things. Other compliances that are
required include relate to retention and authentication of
electronic records and security of data.
Some of the companies doing business in India
are setting up voluntarily affirmative action programs.
Not complying with the US and Indian laws may
result in sanctions against the company.
Services Offered by Us
Madaan & Co. has helped
foreign companies in setting up there operations in India and
other countries. A careful tax planning is required before
opening a subsidiary, branch, joint venture, project office or
liaison office in India. We can help you in corporate planning,
corporate structuring and setting up in India and other
countries. We have also helped US law firms in handling their
India related legal work. We can help your law firm or company
in setting up in India and other countries.
Click here to Contact us
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Contact us for:
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All legal services regarding Doing
Business in India
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Incorporating in a company in India
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Opening a Branch Office
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Opening a Project Office
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Setting up Joint Ventures in India
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Setting up a subsidiary in India
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Drafting Agreements
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Negotiating Agreements
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Setting up Outsourcing in India
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Dispute Resolution
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Our lawyers include those admitted to bar in the
United States of America and India. They have
undertaken legal maters in the USA, India
and Europe. They understand the multi-cultural
and the
multi-jurisdictional aspects of international business
in this age of globalization. They include those educated
at Harvard Law School, Harvard University in the
USA and premier universities in India. They believe in
high moral and legal ethics. |
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