What should investors take into consideration when starting a company in India?
India is a great destination to start a company because of its flourishing market and the various opportunities it offers. This is the reason why many foreign entrepreneurs want to invest their money in India to open company in India.
But no matter how intelligent the person is, they take a look into numerous things to be sure about the fact that they are investing their money at the right place and especially when they raise outside capital for the very first time.
India is the 3rd country in the world to have the largest number of startups and the government has introduced certain schemes for startups in India but that can not be the only reason why entrepreneurs would execute foreign company registration in India.
Here, we are going to discuss the pointers investors should take into consideration before starting a company in India:-
1) A very significant thing to be considered before starting a company in India is to choose an appropriate structure for your company depending on its scale, objectives, and capital pool. A private limited company, partnership firm, or a limited liability partnership (LLP) are entities where businesses can be incorporated based on ownership.
2) An investor should look into the fact that if his company can be classified as a startup since startups are privileged to get plenty of advantages under the scheme launched. There are few conditions labeled by the Department for Promotion of Industry and Internal Trade which are supposed to be considered before starting a business.
3) An entrepreneur would need to acquire particular registrations and licenses based on the business structure such as GST registration, PAN, etc.
4) Before starting a company, an entrepreneur would need to assure systematic compliance with different laws and regulations. The volume and frequency of compliance would depend upon the nature of the business entity.
5) An investor should draw his attention towards tax efficiency before starting a company. Under the startup India scheme, entrepreneurs are exempted to pay tax for 3 years. A tax holiday has been given to them so that they can invest those resources merely in the growth of their business. Angel tax exemption is also to be considered.
5) Government is more likely to carry out many liberalization steps for a better ranking in the world’s banks for providing opportunities to entrepreneurs to implement their business with ease. Therefore, it is important to check your relationship with the government since it issues schemes and policies depending on the business sector for the betterment of startups in the country and in order to grow the Indian economy.
Taking care of all the above-stated points might be a little daunting and would require guidance from the professional. At DBPL, we help you to open a company in india. We assist you at every step from providing appropriate assistance and helping you in registering your company with ease and convenience.