Posted on November 26, 2018 in Can a Foreigner Start a Restaurant in India?
From running a fine dining restaurant, quick service restaurant, resto-bar, café, takeaway joint, or food truck, there is no dearth of options for starting a restaurant business in India. Here is how a foreigner can start a restaurant in India.
You have to apply to the city municipal corporation for the trade license. The fee varies across all the metro cities of India (from 10,000 to 100,000 Indian rupees depending on how small or big the restaurant is). If planning a small restaurant, it could be in between 5000 to 10,000.
This is mandatory to legalize your restaurant business in India. While the cost is not exorbitant, the procedure is quite complicated. That's why many foreign nationals avail business felicitation services from a recognized service provider in India to secure the license.
A GSTIN number is compulsory for any type and size of restaurant in India. If you're planning to open your restaurant in more than one state, then separate GST number for each state is required.
Since your staff are entitled to pay profession tax to the state, which is deducted from their monthly salary, you have to obtain this license.
If planning to serve drinks with food, then a liquor license is compulsory. The procedure of obtaining it is lengthy, tricky, and the cost way too high.
You have to register your restaurants business as a Pvt. Ltd. Company. Moreover, performing an audit on finance, and filing annual returns are compulsory.
Whether you need to choose a location, register your restaurants business, and hire staff, contact a business support service provider in India to manage all the formalities on your behalf.
Posted on November 26, 2018 in Procedure for Foreign Companies to Start a Business in India
Foreign companies can venture into Indian market either by forming a company or registering a branch/liaison office. Here are the procedures to start a business in India for foreign companies.
Foreign companies and foreign nationals can enter Indian market by registering their company as a private limited. They can even make 100% foreign direct investment without any specific approval from the Central Government of India. This is the simplest and fastest method of starting a business in India.
Registration of a Branch Office, Project Office, or Liaison Office is another strategy to enter Indian market. This requires permission of the Reserve Bank of India and/or Central Government of India. But the time and cost involved in registration are higher. Moreover, the registration can be done only by for foreign companies and not by foreign nationals.
There should be at least two directors, and two shareholders (individuals or corporate entities). One of the directors has to be an Indian citizen and Indian resident. There is no restriction on holding share for the Indian director. Besides, a registered office is also mandatory to start a private limited company in India.
Foreign directors of the Indian company have to present a notarized copy of their passport along with a driver's license, and bank statement for address proof. The documents must be attested by a Notary of the home country, or by the Indian Embassy in the foreign directors' country.
India is an emerging market where foreign companies can succeed in any business given its potential. For any help to streamline and expedite the process of registration, arrange for manpower and other resources, etc., contact Gateway of India at (+91) 9422318292 , (+91) 7447794661 / 2 / 3.
Posted on May 2, 2018 in India's Best Market-Penetration strategy?
Like you, many foreign companies are seeking a business opportunity in India. Its growing economy, massive population, and improved spending capacity of the upper-middle class is making it the best business destination for the world. However, strategic planning and through research on India’s markets are necessary before taking the plunge.
India is a vast country with diverse cultures and languages. The taste, demand, and buying capacity of people change from region to region. What product or services will sell like a hot cake in one place will not fetch the same response in another. Therefore, finding potential customers is essential first. Choosing the right customers and markets has to be an integral part for developing India market-entry strategy.
Gaining trust and confidence of Indian customers is essential and one way to do so if by making yourself accessible. By establishing a branch office, you can allow them to approach you. You can also collect direct feedback for your products and services, and develop interpersonal relationships this way. To get help in setting up a branch in India, take help of a reputed business facilitator.
Building sales channels and distribution network is essential to help move your products in the Indian market. There are even other issues to address such as pricing and labeling. The best way to settle all these business essentials is by appointing reliable and diligent partners or agents. This will help you push your products in the Indian market as well deliver them to the doorsteps of customers. The advantage of having an Indian business as a partner is the legal eligibility to sell online to Indian customers.
This option is good if you don’t want any intermediary since you are directly exporting your products to Indian markets. Another advantage is that you can have better control over pricing and can cut down distribution and other expenses. However, the flip side of direct export is that you will not be able to perceive the real picture of the Indian market from abroad. Hence, building a local presence is vital to asses the potential Indian market.
Posted on August 22, 2018 in Why Expand to India?
There is no better time than the present to start a business in India as it’s one of the booming economies in the world. If you are still hesitant, then stop procrastinating and know why to expand to India.
With 1.3 billion people, India is standing second to China in terms of population. The way its population keeps growing, the day is not far when India will exceed China and become number one in the world. More population means more demand for manufactured goods and services. This makes India the most lucrative market in the world.
A large portion of India’s population is young. More than its 50% population is below 25 years in age and more than 65% population is below 35 years in age. It is also expected that the average age of India will be 29 by 2020. What's more, these youth will be trained for employment to contribute in various sectors. This means, employing skilled manpower for any kind of business is easy.
India’s GDP is slowly but constantly growing. The GDP figure may not be as attractive as other developed countries, but the constant increase, howsoever marginal it is an indication enough that India holds a great potential.
The GNI (Gross National Income) of India is growing. This gives a strong purchasing power into the hands of its citizen. No wonder, India is rated as the third largest by purchasing power (PPP).
More than half of the population of India is using a mobile phone which makes the country the fastest growing wireless market. The way mobile phone users have grown in India from 2011 to 2017 is staggering. As of January 2018, India has 1.012 billion active mobile connections.
In terms of doing business, India has surged ahead from the position of 130 to below 100 courtesy easy policies and laws implemented by the BJP government. Lots of transparencies and uniformity have been brought through several bills. Moreover, the “Make in India” initiative to transform the nation into a world-class manufacturing hub is attracting billions of foreign direct investment. Whether it is related to acquiring a land for business, or reducing procedures for moving finished goods in the market, business laws and policies have been made quite flexible.
Major necessity for setting up business in India such as infrastructure, transportation, labor, taxation, food, and internet are relatively cheaper than compared to other countries. Furthermore, the way Indian cities are gearing up to make themselves capable for attracting investors by upgrading technology and raising capital offers a huge opportunity.
India is planning further to make its business policies more flexible for foreign trade and investment. This makes it clear that Indian economy has a lot to offer to foreign businesses. So delaying over taking a concrete step about expanding to India is surely an unwise decision. Contact a reputed business facilitator in India and to develop and execute expansion strategies.