Setting Up Business in India: Many foreign companies arrive in India with inadequate or inappropriate preparation. The logistics of setting up a branch office or subsidiary should rarely be among your top worries, for example.
Choosing your location in India, however can be crucial to your long term success. Don’t think of just Bangalore or Mumbai (Bombay) as viable cities. There are 34 cities in India with a population of more than 1 million people and each of them has its own unique advantages and drawbacks.
Before your first trip to India you should have considered whether you need a vendor partner or distribution partner. Many companies are better off working directly whereas others may be required to operate a joint venture because of laws specific to their industry. In some cases it is advisable to work with multiple partners based on geography or industry.
You must also determine if you can run the India operation remotely or if you will want to send an expatriate from your home country or another location to India. You may, instead, choose to hire a local executive. While many expatriates enjoy living in India, some cannot handle the challenges of such a vastly different culture. A thoughtful, well researched process in choosing the expatriate employee and coming up with a transition plan for them and their family is an important part of starting up in India.
If you decide to hire your team entirely from India, you must set the right expectations of your Western counterparts and of your India-based executives. A two-camp culture can kill your new India operation and without proper planning and training, you risk your success.
We hope that our Doing Business in India Guide will help answer some of the routine questions we get asked. Please Contact Us if you need more in-depth assistance when looking to do business with India. We’ll be glad to help
