Top 10 Reasons for Foreign Entities to Startup Business in India

India surely stands as one of the starspots for entrepreneurs foreseeing to up their business game overseas in these prevailing times. There are many compelling reasons for foreign investors to startup business in India.

As we know, any successful business is a culmination of many factors, including right strategy making, adequate investment, skilled teamwork, and an ideal location. One cannot undermine the pertinence of a favourable site for a thriving business. No wonder many management pundits and business gurus are increasingly setting their hopes on the south Asian nations, especially India, as the dream destination for initiating and expanding their business empires. Even the official Indian government stats point towards this fact.

The foreign investment in India in the year 2019-2020 surpassed the humongous figure of $70 billion. Entrepreneurs must consider to startup business in India, one of the most rapidly growing economies. There are great many lucrative plus points which they can leverage by setting foot on the Indian grounds. Let us take deeper look into some of the top reasons for foreign ventures to startup business in India.

1. Expedient tax regulations

Taxation remains one of the most considerable headaches for most entrepreneurs. Business entities largely desire the ease of staying compliant with the applicable tax regulations. If you startup business in India, you can enjoy a comprehensive taxation system in effect. There are many incentives available for foreign business investors as per the income tax laws. With the advent of the GST Act in India, the convolutions related to multifarious indirect tax rules have subsided.

2. A young nation with an enormous skilled labour force

Human resource is one of the essential pillars for any fruitful business. More than 50 percent of the overall Indian population consists of people below the age of 25 years, as per the Indian census report. A prominent part of the young race holds decent qualifications and skills. Even the availability of an unskilled workforce for labour-oriented operations is immense. It acts as a driving factor for many businessmen who can find accessibility to a vast labour pool if they elect to startup business in India.

3. Need lesser outlay to startup business in India

The monetary repercussions are among the most prominent aspects for any business owner while setting up his business. If you contrast the cost of operation for any given concern in a European or American country with that in India, you will derive quite an exponential variation. The existence of one of the cheapest labour force coupled with reduced rentals and lower material procurement costs enables businesses to up their profitability significantly. If you are hoping not to burden yourself with massive capital investments, startup business in India and save a colossal sum.

4. Supportive government policies

The governing bodies in most developing countries like India are very keen to host foreign investors. They become the source for much-needed foreign exchange and promote export supplies from their country. In India, the government has largely opened up multiple business segments for foreign direct investments. In the past few years, the current administration has come up with constructive initiatives like Make in India and the Startup India Movement to induce investors to startup business in India. They aim to boost international ties with business entities coming from abroad and bring increased benefits for parties on both ends.

5. Its gigantic populace makes a massive market.

Currently, India’s population stands at more than 1.3 billion, making it the second-most populous nation. Such a mammoth figure indicates that this country is the land of diverse opportunities for many entrepreneurial ventures. Your business finds the merit of catering to the needs of a mega-market in India. The rising middle-class folks in India with enhanced spending habits is another plus point to consider. All and all, if you startup business in India, a booming market is readily available for your product.

6. A flourishing financial system

The stellar ecosystem of banking and non-banking financial institutions in India is another attractive aspect for business entities. Over the last decades, India has come to the forefront with many beneficial payment systems. The digital payment infrastructure is also very robust and constantly evolving in the country. Also, the stock market led by the NSE and BSE in India is witnessing increased growth. These elements act as an added perk to startup business in India.

7. The compatible legal framework to startup business in India

Over the years, the laws in India have been metamorphised to accommodate the needs of foreign businesses. The legal structure in the country with the internet-driven environment has become more compliance-friendly for business enterprises. The customs, licensing, and other relevant regulatory aspects have become more providential for foreign entities. If you startup business in India, you can get an edge with this factor. Even its ranking on the Ease of Doing Business List issued by the World Bank has improved greatly.

8. The incredible technological potential

In many parts of the country, the IT sector is escalating at one of the fastest paces in the world. Amidst the current scenario, a strong technological backing can assist any business to gain bigger grounds. If you look to choose to startup business in India, the environment of technology and innovation around will enhance your venture’s operational capabilities by leaps and bounds.

9. Reduced communication barriers

English is undeniably one of the most used mediums of communication globally. Did you know India is the second-largest English-speaking country on the planet, with more than 125 million English speakers? This is another desirable virtue which many foreign business owners should account for while deciding to startup business in India.

10. Cordial international relations for escalation of trade and commerce

Many of us have seen a large improvement in the global positioning and visibility of India. Many superpower nations are recognizing the huge potency of India. Its international relations with most countries are affable, and they have extensive trade agreements to promote trade and commerce. Startup business in India and bank upon this positive facet to give wings to your entrepreneurial aspirations.

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We are team of expert International Accountants, Tax Advisor, Bookkeepers, Startup Mentors and Financial experts. We have dealt and help many startups founders to establish business in UK, USA and India.

We know the convincing reasons we have enlisted above shall drive many business owners to explore the opportunity to startup business in India. However, you would also need an assistant who can offer best-in-breed services related to business registration, legal requirements, and tax compliances in India. GoTaxFile can prove to be the most bankable and budget-friendly choice for you. Our wide range of services carried out with utmost proficiency will allow you to extensively simplify the business establishment process. Contact us to know more!