Do you nurture dreams of setting up your business in India? The entire process of setting up a business in India is exciting, but the procedure and legal formalities can be tedious and confusing. So should you consider setting up shop in India or is your business better off overseas? Here’s what you should consider before you go ahead with your plans.
Is starting business in India a good idea?
Setting up a business in India is still an extremely difficult task when compared to other countries. Long legal formalities and procedural delays are common. This can turn your plans into a time-consuming effort. Consider this – setting up a business in India takes 33 days and closing your business here takes 10 days. (Source: World Bank’s Report: “Doing Business in 2008”) According to the same report, the number of procedures involved in setting up business in India is 13. On the whole, the “Doing Business 2008 Rank for India” is 120 for 2008.
Today, India has gained prominence as a premier investment destination. It would be difficult for you to keep track of the constantly changing procedures and laws related to the same. But professional advisors and Chartered Accountants can be of immense help in evaluating the risks and rewards of setting up your business in India. You can set up public sector companies, private sector companies, branch offices or even project offices here with the approval of the government of India.
Setting up business in India: the necessary checklist
Check your eligibility to set up business here. Remember only NRIs and PIOs can invest in proprietary concerns or partnership firms in India today.
Make sure that you get a PAN card issued by the Indian Income Tax department. You’ll need a PAN for all your business transactions. The process to obtain your PAN card is easy and can be done online as well.
Identify and select your business partners and also peruse your finance options carefully. Seek the services of an established lawyer or accountant to draw up the necessary contracts.
Check for restrictions on setting up a business in India. As an NRI you cannot start any business in the following areas – agriculture, real estate or the print media.
Profitable businesses are the trademark of a successful businessman. It’s a great idea to step into India with your business today! Have you already set up a business in India? Was the process difficult? Would you recommend it to others?