India is fast becoming one of the most attractive destinations for foreign nationals looking to establish a business. With a rapidly growing economy, a large population, and an extremely supportive business environment, India offers numerous advantages to entrepreneurs. This includes not just the Indian citizens, but also the foreign nationals wanting to run a business in India. As a result of the support that the Indian startup ecosystem gets, more and more foreign nationals are opting for company incorporation in India.
One of the key benefits of doing business in India is the ease with which foreign nationals can incorporate a company. In this article, we will explore why foreign nationals should consider company incorporation in India.
India’s Growing Economy
India is the world’s sixth-largest economy and is projected to be the third-largest by 2030. The country’s GDP is growing at the rate of 7% per year for the past decade. Further, this trend is expected to continue in the coming years. India’s rapidly growing economy has created a vast market for goods and services. This makes it an attractive destination for foreign investors. This has also resulted in the increase of the Foreign Direct Investments in the country.
Ease of Doing Business
India has made significant strides in recent years to make it easier for foreign nationals to do business. In 2020, India jumped 14 places to rank 63rd on the World Bank’s ease of doing business index. The ease of doing business index is a ranking system established by the World Bank Group. The higher rankings in this index indicate simpler, easier, cost – effective, measures to conduct trade and business. Further, it also indicates better measures for protection of IP rights.
The Indian government has taken many steps to simplify the process of running a business. The introduction of a single-window clearance system for business registrations and the simpler tax laws. Along with the reduction of compliance requirements have made it easier for foreign nationals to set up business in India. All company related matters and applications are accessible online. This allows anyone from anywhere to connect with the experts in India and get their business incorporated.
Low Cost of Doing Business
India offers a highly competitive cost structure for businesses. The cost of labor, office space, and other overheads are significantly lower in India than in many other countries. This makes it an attractive destination for businesses looking to cut costs and increase profitability. In addition, the Indian government offers incentives and subsidies to businesses operating in certain sectors. As a result, the cost of business is reduced.
Access to Skilled Manpower
India has a vast pool of highly skilled and educated manpower. The country is home to some of the world’s top engineering and management institutes, producing thousands of skilled professionals every year. Many foreign companies have set up their research and development centers in India to take advantage of the nation’s skilled workforce. The availability of skilled workers at a competitive cost is a significant advantage for foreign nationals looking to set up a business in India.
Opportunities in Emerging Sectors
India offers huge opportunities in several sectors, such as e-commerce, renewable energy, and health care. The government has implemented several policies and initiatives to bring more investment in these sectors, making them highly attractive for foreign investors. India is also home to a large number of startups, many of which have achieved significant success in recent years. The startup ecosystem in India is highly supportive, with several incubators, accelerators, and venture capitalists offering support and funding to new businesses. Further, startups that are recognised by the government under the DPIIT scheme are also entitled to ample benefits such as tax exemptions, access to fundings, governmental recognition, and fast-tracked IP registration processes.
Access to a Large Market
India is home to a vast and growing consumer market. With a population of over 1.3 billion people, India is one of the largest markets in the world. The growing middle class and increasing disposable income have created a significant demand for goods and services, making it an attractive destination for business looking to tap into this market. The Indian government has implemented several policies to motivate foreign investment in the country, making it easier for a business to enter and succeed in the Indian market.
Corporate Social Responsibility (CSR) Initiatives
The mandate under the Companies Act, 2013 regarding CSR activities is a step towards the welfare of the country. Many foreign nationals are always looking for occasions for social growth. Hence, this feature of the Indian Company Laws is also one of attractive features for socially responsible foreign nationals.
In conclusion, India offers numerous advantages to foreign nationals looking to set up a business in the country. With our rapidly growing economy, ease of doing business, low cost of doing business, access to skilled manpower, opportunities in growing sectors, and access to a large market make it an attractive place for business. The Indian government has implemented several measures to simplify the process of setting up and running a business in the country, making it easier for foreign nationals to build their presence. You can easily get online company registration India by connecting with online professionals.