Post on 10-Feb-2017
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The country has complex and conflicting tax policies, as well as stringent and ever-changing corporate requirements.
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It has a different tax regulatory framework ...
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... distinct cultural norms ...
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... and a time zone inconvenient for those in the western hemisphere.
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Operating in India can be complex.
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And only 8% of companies we asked have robust
and effective expansion strategies for India.
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But, as The New York Times reported in May, prominent global investors are looking to capitalize on India’s growing middle class
and see parallels between the India of today and the China of ten years ago.*
*http://www.nytimes.com/2015/05/05/business/dealbook/with-big-names-and-money-flowing-in-tech-start-ups-in-india-heat-up.html?ref=international&_r=4
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This emerging economy is fast rising above its reputation as the ‘back office’ of the world.
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It now has the third highest GDP in APAC.
If you’re thinking of expanding into India, hiring and HR considerations,
permanent establishment, entity setup and taxation should all be on
your radar.
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But you need to be prepared to do business the Indian way.
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Which is synonymous with bureaucracy.
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Unsurprisingly, for 51% of the companies we asked, compliance with in-country regulations was the biggest
challenge they faced when doing business in India.
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When planning your Indian expansion, allow plenty of time.
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Timelines to set up similar operations in other countries will
not apply in India.
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Your strategy needs to remain flexible to account for this.
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