Aug 25, 2020

Advantages for foreign companies to open a firm in India

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The physical existence of India is about to break into the developing business sector of the country. However, the right start to open a firm in India can mark the success of your business in the developing business territory. Before entering the Indian market, foreign companies should consider these few things assessment of the total market, target market, and potential buyers, learning about your competitors, entry options, and impactful business model and above all is the implementation of the strategy.

India is amongst the most progressive countries in the world, which has a population of 1.36 billion individuals with an enormous and larger potential market. If you want to open franchise in India of your brand, then India can be the best choice you can make because of its fastest developing pace.

Also, looking at the market potential of India, it is revealed by the trends that the inflow of FDI is increasing every year as the result of the opening of multiple foreign companies in India. Hence, it resulted in several changes in the policies of FDI in India.

There are many other reasons why foreign companies invest in India. The reasons include:
• abundance of resources
• Lower wages of labors and less investment
• Privileges, like tax exemptions, etc.
If you plan to open a firm in India, then the ROI is also higher with lesser investment.

Options foreign companies are enriched with to enter the Indian market
The foreign company thinking to open franchise in India can enter the Indian market with the following options:

• Liaison Office
• As an incorporated entity
• Branch Office
• Wholly owned subsidiaries
• Joint Venture
• As an office of a foreign entity through
A foreign company can start the procedure of entering India under companies act 1956 through registration or by liaison or opening a branch office in India. Setting up a private limited company is the fastest and coolest way to open a firm in India.

Advantages to open a firm in India:
• Wholly owned subsidiary- Under FDI policy permits 100% FDI investment.
• Joint Venture- You need to do it with an Indian partner to get the business local address.
• Skilled Workforce: The population of India gives the option of a highly skilled workforce.
• Growth Potential: India is the fastest growing economy with a democratic background.
• Healthy Legal System: Efficient judicial and legal system, enhanced law enforcement.
• Work Ethics: Professional working level with the desire to learn new skills.
• Stability of Government: For foreign investment political stability is important.
• Extensive Trade Network: The trade networks are bilateral and easy with free trade agreements providing the zone of opportunities.
The country is the land of opportunities for all foreign businesses planning to shift to India. Connect with us for further assistance.

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