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Doing business in India is an unique experience. Owing to huge market, and spectacular growth story, Foreign Capital has been attracted to the country. However the business environment in the country is very different from what is experienced in developed countries.

The first uniqueness is sheer multiplicities of laws, which is required to be complied with. Union Government, States Governments and local authorities has their own laws, a business entity has to comply with. There are certain regulatory authorities, whose regulations are required to be followed. Various permissions and licenses are required to be taken. Various returns, information etc. are required to be filed with various authorities. Such Legal structure makes it imperative to take assistance of an efficient business law advisor.

In India, Taxation system is also multi-tiered. There is Union Government imposing Central Excise Duty, Custom Duty, Central Sales tax etc. State Government impose Sales Tax, Entry tax etc. Local authorities impose Property Tax, Octrai etc. Such taxation structure makes it imperative to take assistance of an efficient and knowledgeable tax advisor.

Indian Economy has continuously being opened to Foreign Investment since 1991. The process is still on. The government is endeavoring to simplify the laws to the extent possible. Till that time, these laws have to be complied with for efficient business process in India – and it has its own rewards.

In brief following steps are required in starting a business in India:

  • Reserve Bank guidelines/permission for starting liaison office/project office/branch office in India.
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  • Foreign Exchange Management Act and compliance in banking transaction.
  • Foreign Direct Investment policy and compliance in starting any subsidiary company, taking stake in existing company and related guidelines.
  • Company law, if a subsidiary company is being opened.
  • Compliance with local laws of doing business.
  • Compliance with taxation laws, including transaction valuation based on principles of transfer pricing in dealing with Associated enterprises.

Rajesh Kumar & Associates is a full service Law firm specializing in giving step by step guidance in scrupulous compliance with these laws. We also represent Foreign/non resident entities in India as Attorney in India.

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