Follow Us :     View Tm- India's profile on Pinterest   View Tm- India's profile on LinkedIn      Subscribe   Follow us on Twitter   Find us on Facebook

Business in India

India is one of the fastest growing economies in the world today, and with so several foreign firms and businesses attracted to this economic wonder, it is no surprise that the Indian government is making it easier on businesses to start up in the country. The decision of starting a business in India requires an entrepreneur to structure the most favorable ownership pattern. The design of the business depends on the ownership pattern. The source of investment holds equal importance because it decides the additional benefits from multi bilateral treaties with other countries. Varied opportunities are offered by the Government to multinational companies to setup their business in India in sectors like software, retail, telecommunication, and infrastructure. Relevant rules and regulations govern investment in all these sectors.

Companies can be established by setting up one or more of the following types of business, under the Indian Companies Act, 1956
  • Investing as a foreign investor in a joint venture with minor, equal or major shareholding.
  • Setting up a holding company (Investment Company) in India.
  • Setting up a wholly owned subsidiary in India, 100% owned by foreign shareholders.


The challenges of international competition and ever increasing complexity of information flows have widened the financial and business risks faced by companies from abroad trying to set-up their business in India. Success in the foreign land needs hand-holding to start-up a new business in the shortest possible time period at affordable price. Setting up a legal entity to carry out business in India requires specialized expertise and an in-depth understanding of the Indian law.

Investment India


Investment in India and FDI India inflows are a by-product of improved market sentiment across the globe. In recent times it has become obvious that more and more share market punters are open to investment in India, with a widespread revival of foreign direct investment (FDI) seeing FDI India-bound thanks to an upward movement in consumer confidence levels. The types of investment India has, that interest overseas investors, include interest in the banking sector. The investment in India in the banking sector has gained momentum in the last 3 years especially as investors are willing to invest India to the commercialization of banks, and consider FDI India through financial collaborations.

Investment in Indian joint ventures by foreign investors is also a growing area, but FDI India is not permitted in certain industrial sectors such as arms and ammunition, railways, iron mining and coal mining - to name a few. Foreign investors got more used to the idea of to invest India to the ability of Indian companies to raise equity through Global Depository Receipt (GDR). This type of foreign interest is the kind of investment India needs to try to encourage to worldwide attract more investment in India into the future. In terms of investment India formerly treated FDI India and FDI as a whole as a necessary evil. These days, thanks to new industrial policies in India, foreign investment in India is no longer seen as "taboo" by westerners, and more and more westerns are likely to begin to invest India and enjoy the lessening of operational constraints that used to plague foreign investors who first began westernized breakthrough investment in India.