Your Trusted India Expert For Establishing Your Business In India
India entry strategy requires a focused approach arising with in depth evaluation of the various market opportunities followed by creating a deliberate scheme for their entry and at last the effective implementation of the suitable and recommended strategy to achieve the desired results and to make strong presence in India. Hence, it can be correctly said that an effective and efficient market entry strategy can be achieved by going through the following stages:
Exploring Opportunities In Indian Market
To make a pure “take it or leave it” decision on this aspect, it requires a measured assessment of on the aspects of competition, legal and technical barriers, pricing, business cultures, sales and distribution, etc.
Market Exploration requires a thorough analysis of:
Formulation Of Appropriate Strategy
It includes evaluation of suitable India Entry Strategy options and preparation of actionable business plan taking into account various aspects involved considering success, failure and prevailing best business practices.
Exploring Opportunities in Indian Market
Implementation Of Strategy
An effective strategy will rule in the market in long run if it is duly and successfully implemented. It enhances the value and standing of the brand with reduced risk and compacted growth time frame
India – The Land Of Opportunities
Concept
| As an Indian Company | As a Foreign Company |
|---|---|
| Wholly owned subsidiaries | Liaison Office |
| Joint Venture with an Indian Company | Branch Office |
| Merger and Acquisition | Project Office |
| Limited Liability Partnerships (LLPs) | Licensing and Franchising |
Taxation
The investor is required to pay tax on net income earned in India. The rates of taxes differ among structures.
| Particular | Tax |
|---|---|
| Company | 25% tax (in case their turnover is upto Rs. 50 crore)+ surcharge + education cess on net income earned |
| Branch office/ Project office/ Liaison office | 40%+surcharge + education cess |
| Limited Liability Partnerships (LLPs) | 30% + surcharge + education cess |
Repatriation Of Your Investment
| Repatriation | Particular |
|---|---|
| Repatriation of Dividend | Dividends are freely repatriable without any restrictions (net after tax deduction at source). |
| Repatriation of Capital | Remittance of sale proceeds of a security to the seller of shares resident outside India, provided the security |
| Repatriation of Interest: | Interest on fully, mandatorily & compulsorily convertible debentures is also freely repatriable without any restrictions |
Foreign Direct Investment (FDI)
Sectors under Automatic Route with Conditions
| Sector/Activity | Cap |
|---|---|
| Plantation Sector | 100% |
| Mining of metal and non-metal ores | 100% |
| Mining – Coal & Lignite | 100% |
| Manufacturing | 100% |
| Food Product Retail Trading | 100% |
| Broadcasting Carriage Services(Teleports, DTH, Cable Networks, Mobile TV, HITS) | 100% |
| Broadcasting Content Service – Up- linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels | 100% |
| Airports – Greenfield | 100% |
| Airports – Brownfield | 100% |
| Air Transport Service – Non-Scheduled | 100% |
| Air Transport Service – Helicopter Services/ Seaplane Services | 100% |
| Ground Handling Services | 100% |
| Maintenance and Repair organizations; flying training institutes; and technical training institutions | 100% |
| Construction Development | 100% |
| Industrial Parks -new and existing | 100% |
| Trading – Wholesale | 100% |
| Trading – B2B E- commerce | 100% |
| Duty Free Shops | 100% |
| Railway Infrastructure* | 100% |
| Asset Reconstruction Companies | 100% |
| Credit Information Companies | 100% |
| White Label ATM Operations | 100% |
| Non-Banking Finance Companies | 100% |
| Pharma – Greenfield | 100% |
| Petroleum & Natural Gas – Exploration activities of oil and natural gas fields | 100% |
| Petroleum refining by PSUs | 100% |
| Infrastructure Company in the Securities Market | 100% |
| Commodity Exchanges | 100% |
| Insurance | 100% |
| Pension | 100% |
| Power Exchanges | 100% |
For other sectors and permissible ratios please Contact MUDS!
WHY MUDS?
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