To be or not to be. That is the question.
Should you be in India? Will it be the move that takes your business to new heights? Is it the right strategy for you and your organization?
These are some of the first questions we need to answer before mapping out a comprehensive India Entry Strategy and Roadmap.
While India might be the right option for a lot of organizations, it is certainly not for everyone.
Why is that? Not least due to the fact that many sectors are still precluded by the Indian Government from entering India through restrictions placed on Foreign Direct Investments.
Or the fact that it may just not give you the right level of ROI to justify allocation of your valuable financial and manpower resources.
As a first step, IndoGlobal will conduct a customized feasibility study for your organization and industry.
We will give you a tailored report covering the following major areas:
- Market Potential
- FDI Regulations
- Import and Export Regulations
- Taxation
- Other applicable laws
- Entry Options and Our Recommendations
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Too many choices can be confusing
There are plenty of ways you and your organization can be a part of the India story. From an arms legth type of relationship to totally involved, the options are many.
What is the best option of your company?
Should you enter in stages and increase your presence over time? Should you make a big splash and enter in a big way? How much resources can you commit? Would you get a better ROI if you channel more resources into India?
Based on the information collected during the feasibility study and keeping in mind your particular circumstances, preference and goals, we will present several options to you and give you our analysis and recommendations.
This is the final step of the feasibility study report and ideally you and your management team will be empowered with enough information to decide whether you want to take the next step of your India entry plans.
Okay what else do we need to keep in mind?
After analysing your particular situation and circumstances, we will also advice you on any complications that may arise or issues that we feel should be properly addressed in terms of other applicable laws and regulations. Some common examples include issues on:
- Intellectual property.
- Labor law.
- Takeover code.
Untangling the World Wide Tax Web
There are just too many tax codes to worry about, especially in cross border situations, because everyone wants a piece of the action and participate in your success.
Having to pay tax twice on the same income, can definitely be a huge deterrent.
Thankfully, India has embarked on an agressive policy of establishing Double Tax Avoidance agreements with its trading partners. Our international tax experts will advice you on the best way to structure your operations in order to minimize your tax liablities legally and ethically.
Our tax review at this stage will identify all the tax and foreign exchange control authorities we will have to be registered with.
We will also advice you on taxation and immigration issues surrounding expatriates.
Importing and exporting, to and from India
A world without borders. While an ideal that we at Bluebox.IndoGlobal truly believe in, it is but, just an ideal.
We live in a world of trade barriers, tariffs, embargos and restrictive trade practices.
To ensure smooth trade operations, we have to make sure we have filed all the necessary paperwork and got all permissions and licenses from relevant authorities.
We will help you identify and advise on:
- Export Import Licensing Formalities and Processes
- Registration with Export Promotion Councils and other relevant governmental bodies
- Custom’s Clearances
- Export Incentives
- Joining Trade Associations and Chambers of Commerce
Foreign Direct Investment Regulations in India
India's foreign trade policy has been formulated with a view to invite and encourage Foreign Direct Investment in India (FDI). Indian economy has been consistently showing its commitment in walking the path of liberalization since it opened its doors to the world in 1991.
Despite several changes in government and political ideaologies, one thing has remained consistent - India's commitment to reducing trade barriers and making it easier for foreign companies to be a part of the economy.
To that end, besides relaxing FDI norms over time, the government has also relaxed its foreign exchange control policies and effectively removed all restrictions on the flow of foreign money in and out of India and made the India Rupee a fully convertible currency. Foreign companies can also buy properties in India required for their operations.
Additionally, the Indian government has encouraged potential investors through fiscal and non-fiscal advantages like subsidies, exemptions, various incentives and tax holiday. The advantages vary from state to state and sector to sector.
Post feasibility study, when we develop your roadmap into India, we will help you structure your business to take advantage of all these investment friendly policies.
