India Entry Strategy

Anbac Advisors helps business groups, companies, Expats, Non-residents outside India in setting up entities in India and carry out business in India.

Advisory and legal structuring on matters pertaining to Foreign Exchange Management rules, Income Tax regulations of India, Goods and Services tax implications, make in india initiatives, alignment with govt schemes and financial modelling, corporate finance, accounting and bookkeeping process set ups, compliances etc. are all handled under one roof by our team.

Most large MNCs, and non-residents end up in disputes owing to lack of knowledge of Indian regulations, and we make the process seamless and very convenient for Non-residents who wish to set up operations in India.

Setting up Venture Capital Trusts and analyzing the tax implications of various global structure options is an important consideration for Investment vehicles for multiple investments into Indian businesses. Anbac Advisors also assists such VC funds and other investment companies in smooth set ups and understanding legal scenario pertaining to these.

INDIA MARKET ENTRY STRATEGY

Important parameters to analyze and assess during making inroads into Indian economy and setting up a business here:

1. Legal Structure: Decide on the appropriate legal structure for your business in India.

The common options are:

a) Liaison Office/Branch Office: Suitable for companies looking to establish a presence for market research, promotion, or liaison purposes. These offices cannot engage in commercial activities.

b) Wholly Owned Subsidiary: A separate legal entity fully owned by the foreign company. It allows for complete control and flexibility in operations and is the most preferred option for long-term investments.

c) Joint Venture: Collaborating with an Indian partner can be beneficial for navigating local regulations and gaining market access. It involves sharing ownership, risks, and profits with the Indian partner.

India entry strategy is incomplete without deciding the first step, which is entity form and structure.

2. FDI Policy: India has a liberalized Foreign Direct Investment (“FDI”) policy in various sectors, with certain restrictions and sector-specific regulations. Check the FDI policy of the Department for Promotion of Industry and Internal Trade (DPIIT) to understand the requirements and limits for your sector.

India Entry strategy and its complexity varies for every sector and Central bank’s outlook about the same.

3. Regulatory Approvals: Depending on your industry, you may require specific approvals and licenses from regulatory authorities such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs (MCA), etc. Ensure compliance with applicable laws and regulations.

Certain strategic importance sectors or sensitive sectors are prohibited to initiate, and hence India entry strategy is incomplete without understanding these aspects.

4. Taxation and Accounting: Familiarize yourself with India’s tax laws, including corporate taxes, Goods and Services Tax (GST), customs duties, and transfer pricing regulations. Maintain accurate accounting records and consider seeking professional assistance for tax compliance.

Tax efficiency is core to setting up a profitable and viable business in India, and hence no India entry strategy is complete without setting up a robust, efficient and convenient tax structure.

5. Intellectual Property Rights (“IPR”): Protect your intellectual property (IP) assets by registering trademarks, copyrights, and patents in India. It’s crucial to safeguard your brand and innovations and be aware of any existing IP infringements.

6. Employment and Labor Laws: Understand India’s employment and labor laws, including minimum wages, working hours, employee benefits, and social security obligations. Comply with local employment regulations while hiring and managing your workforce.

7. Compliance and Corporate Governance: Comply with corporate governance norms, such as filing annual returns, financial statements, and maintaining statutory registers. Ensure compliance with the Companies Act and other relevant regulations.

8. Local Partnerships and Cultural Understanding: Building relationships and understanding the local culture is important for successful business operations in India. Engage with local partners, stakeholders, and customers to navigate the market effectively.

9. Ongoing Compliance and Regulatory Changes: Stay updated with regulatory changes and amendments in India. Periodically review your compliance requirements and ensure ongoing adherence to applicable laws and regulations.

It’s important to consult with legal, tax, and business experts who specialize in the Indian market to guide you through the specific requirements and processes related to your industry and business model.

Anbac Advisors is a one stop solution for making your experience into India a seamless and hassle-free process.

Our Services also include Legal and Audit Compliance, India Market Entry Strategy, Legal Structuring, Fundraising Platforms for Startups, Global Tax and Legal Structuring, Business plan, Virtual CFO services, Company Registration in India, Trademark Registration in India, Financial modelling and  Company Valuation Services, Government tie-ups and Grants and Due diligence, Legal Advisory in India, Strategy Consulting in India

 

Legal Team
Anbac Advisors