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How to do business in India?

As India is a developing country, the government is focusing to attract investors for doing business in India and to also motivating resident to produce & use make in India goods & services. As part of this government series on the make in India, a business consultant in India provide insights from a legal perspective on the considerations for investing into India from various countries. Our country India is the second largest country in the world – its home to approx a sixth of the human population – and if we talk in terms of land mass it’s the seventh largest country. Since 1991, India has experienced unprecedented growth and has become an integral part of the global economy. India is now the world’s fourth-largest economy, and has been growing at an astounding annual rate of 4.5% to 5% since 2002; which has resulted in a quantum leap from a primarily agrarian society in the 1980s to an increasingly service and industry oriented economy at present.

India is emerging as a global centre for services, outsourcing, and consulting firms in India is also becoming an attractive destination for outsourcing industrial production, particularly for specialty manufacturing as the Indian government is promoting the make in India products. In addition, the expanding Indian middle class is about the same size as the population of the US. It has seen a significant rise in its ability to pay for and desire to buy high-quality consumer products, thereby providing a large domestic market for companies that choose to set up consumer manufacturing operations and sales centres in India. India is one of the world’s most attractive investment destinations and will continue to be so in the future by providing goods & services in the name of making in India.

How can CAONWEB Help you?

In India, Government is providing all possible facilities to entrepreneurs for the purpose of ease of doing business in India through their Make in India scheme. We, CAONWEB is providing the online directory where you can search the small business consulting firm, a business consultant in India, strategy consulting firms in India, etc. We CAONWEB is providing the list of expert professionals like CA’s, CS’s, Lawyer’s, Business consultant in India, tax consultants, strategy consulting firms in India, etc as ONE-STOP solution for all pre & post incorporation compliances & licensing requirements for doing business in India and also they can help in developing business according to government scheme of “make in India”.

We CAONWEB is always here to help you, Visit our website where you can find the strategy consulting firms, a legal consulting firm, a business consultantwho can help you in achieving your goals to start your business under the scheme of Make in India. So, finally decide which business structure suits your business. Selecting the right business structure will impact many factors from your business name, to your liability, to how you file your taxes. The operational and financial success of the company also depends on the business structure. Once you are done with deciding the business structure, rest leave on us. We CAONWEB are here to guide you to get the right professional who will help you for doing business in India or make in India.

What is included in our Package?

Doing Business in India: A Step-By-Step Guide

Frequently Asked Questions

Can a foreigner become a Director in Indian Company?

Yes. There is no restriction on a foreigner for becoming a Director in the Indian company. He should obtain a Directors Identification Number (DIN) in India. In case, the foreign Director also requires signing on behalf Board of Indian Company, He also needs to get a Digital Signature DSC.

What type of business structures can be chosen for doing business in India?

The choice of the business structure depends on requirements, such as:

A) For representation purpose:
a. Project Office
b. Liaison Office
c. Branch Office

B) For entity:
a. Wholly Owned Subsidiary
b. Limited Liability Partnership (‘LLP’) (subject to Approval Route & Conditional basis)
c. Joint Venture

C) For distribution purpose:
a. Distributor/Importer
b. Franchisee/ Agent

Can foreign investor invest in shares issued by an unlisted company in India?

Yes, but the price of the shares should not be less than the fair valuation of shares done by a SEBI registered Merchant Banker or a Chartered Accountant as per any internationally accepted pricing methodology on arm’s length basis. However, where non-residents are making investments in an Indian company in compliance with the provisions of the Companies Act, by way of subscription to its Memorandum of Association, such investments may be made at face value subject to their eligibility to invest under the FDI scheme.

Can a foreigner establish a partnership/ proprietorship firm in India?

Only NRIs/ OCIs are allowed to establish in partnership/ proprietorship firms in India on non-repatriation basis. Non-repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, not eligible to be repatriated out of India.

Can Indian resident receive shares as a gift from NRI?

Yes, an NRI can gift shares to the person residing in India. But if the Indian resident is not a relative according to section 56(2) of the income tax Act and the fair value of the shares exceed Rs. 50,000, the recipient will be taxable in India.

Who governs & regulates FDI in India?

In India, foreign direct investment FDI policy is regulated under the Foreign Exchange Management Act, 2000 (FEMA) governed by the Reserve Bank of India.

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