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Invest in India

  1. Invest in India

Invest in India

Invest in India

India has always been a center of attraction for commercial purpose in the world. This country is like a beehive of customers. If they find the company easy and reliable, they will stick to them and be their loyal customers.

Due to the efforts of recent government, setting up a business here in India is made very easy. The government of India has taken huge steps to increase and support FDI inflow in the country.

Some recent advancements in the FDI policies liberalize almost 25 sectors like chemicals, pharmaceuticals, infrastructure, etc. This great step will help foreign companies set their businesses in those sectors. Not only this, but the government has also provided aids in taxes and customs duties to support them further.

Why invest in India?

India is becoming a major attraction for the investors from all around the world. It has always been a place of abundance of resources, whether say it for minerals or human resources, which are easily available. In recent years, Government of India have been taking huge steps like ‘Make in India campaign’ to increase and support the FDI inflow in the country.

The updated FDI policies of the country liberalizes 25 sectors like infrastructure, pharmaceuticals, textiles etc. that are making it easy day-by-day to invest and setup a business in India.

  • Resources in India: India has a rich variety of resources available. Due to its diverse land, the distribution of resources varies from state to state. You can set-up your plant or business according to its availability.
  • Availability of human resource: Due to the country's high population, skilled labors and employees are easily available and at very low rates. Also, we have a comparatively higher number of population.
  • Culture to market: India has a diversified range of cultures assimilated in the country, that varies from state to state and land to land. So, it becomes very essential to study your target market.

How to Invest in India?

Investment is done in many ways like investment in shares and debentures, gold bonds, purchasing a real estate property etc.

But if we talk about investment in business, there are basically two ways in India. And it is suggested to go for the second way.

  • Automatic Route: This route does not require approval from the government. But it is better to be on safe side, so this option is not mainly taken into consideration.
  • Government Route: Under this, approval is needed from the government. An application is made that then passes through a process. The application is made in Foreign Investment Facilitation Portal, which then moves forward to their respective ministries.

Types of Organization

In India, there are mainly four kinds of organizations exists in India.

  • Sole Proprietorship: In Sole Proprietorship, there is only one owner of the firm. The firm and the owner are considered as same entity in the eyes of law. Its liability is unlimited. It is not necessary to get it registered.
  • Partnership: A partnership firm consists of two or more partners, bind together under partnership deed. They share their profits and loses decided mutually. They too have unlimited liability and have same entity.
  • Limited Liability Company: A company is a well established firm, registered under ‘Company’s Act, 2013’. The shareholders are the owners of the company. It have directors that take directorial decisions. It have its own separate entity. And its liability is also limited.
  • Corporations: Corporation is a firm formed by a group of people for the mutual benefits of its people or any special section of the society. It is like a Not For Profit organizations.

Tax compliance

Tax compliance means payment of taxes and collections of data relevent to it. There are two kinds of taxes: Direct Tax and indirect tax.

Direct tax is paid by the individual which in levied on the income he earned or own. Income tax, corporation tax comes under this segment.

Indirect tax is paid passively. It is not paid by the individual on which it is imposed. When a person buys a commodity, he pays indirect tax attached with its price. Goods and service tax come under this.

Perks of Investing in India

  • Availability Of Skilled Manpower: Although China provides labors at more lower rates, India gives you significantly more numbers of skilled labors in comparison. Being a youth country, we have more people belonging to working class.
  • Resource In India: India is rich in mineral resources. Resources which are distributed all along the diverse land of the country. Some parts in India are rich in renewable resources while some are with non-renewable resources.
  • Inbound Investment Coming To India: Investment coming to the country from foreign is known as inbound investment. Inbound investment is very much beneficial from the country’s point of view.
  • Culture of India: India has a diversified range of culture, varying from state to state. Each demand different set of treatment. So it is very essential to analyze your target consumer before setting up the business.
  • Work Atmosphere: India, in terms of work atmosphere, are highly competitive in nature. Everyday hundreds of firms gets registered. But only those survive who can cope with the ever-changing business environment. Rest get washed out.
  • Labor rates: Labor rates in India are very low. Although, according to ‘Minimum Wage Act, 1965’ of Indian Constitution, the employer is bound to to fix a minimum rate of wages that he is going to pay to his labors.
  • Foreign Currency Fluctuation: The value of Indian currency is quite low as compared to other dominant currencies of the world. It fluctuates frequently. So, it becomes crucial when to invest. Mainly when the value of currency of base country is more as compared to Indian Rupee.

Which Cities To Invest In India?

  • Navi Mumbai: Navi Mumbai is well established city in extent of Mumbai. It offers easy availability of manpower and resources.
  • Hyderabad: This city is growing IT Hub of India. It offers you affordable site for industry establishment.
  • Bangalore: This city is well-established successful IT Hub of the country.It is considered as best city for start-ups.

How can Meru Accounting help?

Here, at Meru Accounting(www.meruaccounting.com), we help you chalk out Business Plan and make is presentable in best possible manner. We help you execute and setup your business operations in Indian market.

We will also take care of your accounts and payroll, so that you can focus on more productive tasks.