India has emerged as the fastest-growing major economy in the world, according to the Central Statistics Office and International Monetary Fund (IMF). India’s labour force is expected to touch 160–170 million by 2020, based on the rate of population growth, increased labour force participation and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute. Indian economy is also strengthening due to many policy reforms by the government such as ‘Make in India’ programme, ‘Start-up India’ programme and ‘Ease of doing business’ programme. All these factors make India a suitable place for doing business.
To start a business in India, we need to decide on a business structure to move forward. There are many business structures like company, limited company, unlimited company, private limited company, public limited company, partnership, one person company, etc. The business structure we decide must be in accordance with our business plans and strategies to ensure a smooth running.
Employment and labour is a part where we should choose skilled and professional personnel for our company. The entry of foreigners to work in India is regulated by the central government and the government of their nationalities. The Indian government has passed many labour laws to help the labours like ‘The Industrial Disputes Act, 1947’, ‘The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952’, ‘The Payment of Gratuity Act, 1972’, ‘The Factories Act, 1948’, ‘The Payment of Bonus Act, 1965’. Cost of living in India greatly depends on the lifestyle the individual chooses, most Indian cities offer a healthy and luxurious lifestyle to most of the working professionals. Even in the highly developed cosmopolitan cities like Delhi, Mumbai, Banglore, the cost of living is lesser compared to other western countries. Work permit for immigrants is also made easy to get by the central government.
The tax system in India is mainly classified into two categories- direct tax and indirect tax. Direct tax deals with the income tax, domestic tax, international tax and transfer pricing where indirect tax mainly deals with the goods and service tax and foreign trade policies. GST is one of the biggest tax reforms introduced in the history of Indian tax reforms which is aimed to help in the growth of the economy. Under the Indian government’s foreign trade policy, special incentives are given to export-oriented units set up in electronic hardware technology parks, software technology parks and biotechnology parks. India has an extensive banking system that is conducive to international business. Indian banks can be broadly classified into public-sector banks private sector banks and foreign banks. Public-sector banks are the pillars of the banking sector in India, accounting for more than 70% of the total banking industry assets. This wide network of banks and financial institutions offers a variety of financial products and services such as retail banking, debt syndication, financial advisory services, portfolio management and asset management.
The Indian government has come up with various schemes and incentives to encourage innovation and entrepreneurship. While unemployment is still at large in India, this is seen as a move to tackle unemployment and create jobs for the benefit of the nation. Many schemes such as ‘Start-up India’, ‘Atal innovation mission’ are aimed to boost the idea of entrepreneurship. Along with this, the Indian government also provides assistance by various government agencies like the department of commerce, ministry of foreign affairs, directorate general of foreign affairs.
There are wide opportunities for joint ventures and collaborations with the country’s dynamic and highly competitive private sector. Skilled managerial and technical manpower matches the best available in the world, cheaper workforce along with a vast and ever-expanding base of the middle class provides India a distinct cutting-edge in global competition and offers investors a transparent and conducive environment that guarantees the security of their long-term investments.