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Old 11th March 2010, 14:36   #1
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Default Starting a business in India...

being a German - what are the regulations?

Being fed up with Europe I seriously think of getting into India.

What would I need to do?

Do I need an Indian majority partner?

Any information is gladly received.
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Old 11th March 2010, 18:03   #2
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What industry are you talking about? Most likely automobile, but what kind of business specifically?

Also what was the story in Europe?
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Old 12th March 2010, 18:02   #3
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Originally Posted by Gurpartap Singh View Post
What industry are you talking about? Most likely automobile, but what kind of business specifically?

Also what was the story in Europe?
First the story about Europe:

Iceland went bust, then Hungary followed. Of course, Greece couldn't stay out of it and got into similar trouble. The next country to go bust is the UK. Unemployment is at the highest levels, national health systems and pension funds on the brink of collapse.

Stupid regulations make working conditions very difficult for smaller companies.

_____

I am looking into three different businesses.

Building and exporting wind turbines.

Producing automotive components for the after market aprtly for India and for export as well as producing a sports car, which is for the doemestic market as well as export.

My passion and part time occupation the making of movies. But this is the least problem as it doesn't need to be based in any specific place.
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Old 12th March 2010, 18:23   #4
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Stupid regulations make working conditions very difficult for smaller companies.
Whatever gave you the idea that regulations here are intelligent?

For starters, I am doubt that they allow non Indian citizens to own businesses. The penalty being inability to send out profits / dividends to outside India.

Alternative would be to get approval of the Foreign Industries Promotion Board - the FIPB.

I suggest you look at words like "fipb" (finmin.nic.in) and RBI's guidelines / policies on repatriation of profits and royalties to foreign countries.

OTOH, if you choose to become an Indian national, things would be easiers, but I cannot vouch for that. We do have long time Indian residents here on this forum - I am not sure if they have assumed Indian citizenship though. (I presume they have).

BTW, sam kapasi - "lord yeti" and his potential wife - TheONE - have German connections. They may be able to help you bridge several divides. Try Pm'g them.
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Old 12th March 2010, 18:39   #5
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It is possible to have a company incorporated , by Foreigners in India, under Foreign Investemnt scheme of RBI.

For this, though, you would require a very trusted CA in the city where you are proposing the incorporation.

A minimum of two directors are required for a Private Limited Company , though you would not be able to go public for the first five years.

It's a long list of Do's and Dont's , so if you dont get the information it online, you may ping me.

Thanks!

Aditya


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Originally Posted by CPH View Post
being a German - what are the regulations?

Being fed up with Europe I seriously think of getting into India.

What would I need to do?

Do I need an Indian majority partner?

Any information is gladly received.
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Old 12th March 2010, 20:52   #6
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For this, though, you would require a very trusted CA in the city where you are proposing the incorporation.

CA = Chartered Accountant.

Probably called a CPA or public accountant in other countries.
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Old 13th March 2010, 00:01   #7
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If you have cash you can go FDI route. its very lenient in many ways. You have to search Indian partners.

Many foreigner clients i have are doing some biz here in Rajasthan, Darjeeling and Sikkim.
Some exports marbles, ready made fabrics etc to West that sell like hot cakes there.
Some are artist, for example they make thangas which are in great demand overseas.
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Old 13th March 2010, 17:05   #8
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Whatever gave you the idea that regulations here are intelligent?
You threw the British out. That's a very good start for better regulations.

Thanks for all the information.

I will look at everything and will pesture you with more questions.
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Old 15th March 2010, 21:45   #9
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You threw the British out. That's a very good start for better regulations.
Flattery!!!!

ok. ok. ok. Now we have a very good reason to help you....:-D

Quote:
I will look at everything and will pesture you with more questions.
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Old 16th March 2010, 02:05   #10
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If you are indeed German all you need to do is google for "Indo German Chamber of Commerce" and you will see that they have done all the homework for you. If you are British read your post #8 again.
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Old 21st March 2010, 17:57   #11
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Frankly I am not sure much the regulations are intelligent. But it sure makes sense to diversify into emerging markets anyway. Just do the homework and study the market.
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Old 21st March 2010, 21:44   #12
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Flattery!!!!

ok. ok. ok. Now we have a very good reason to help you....:-D
I thought you love this one.

At the moment I work on it to throw the British out of Britain.

Actually some of them are quite nice.

Quote:
Originally Posted by khoj View Post
If you are indeed German all you need to do is google for "Indo German Chamber of Commerce" and you will see that they have done all the homework for you. If you are British read your post #8 again.
Thanks for the info.

And I can assure you that I am German. This is why half of them calls me 'Kraut'. At least they won't call me 'Cabbage'.

Quote:
Originally Posted by mxx View Post
Frankly I am not sure much the regulations are intelligent. But it sure makes sense to diversify into emerging markets anyway. Just do the homework and study the market.
I am studying very hard. It is looking very promising. And even more interesting is that the people here seem to be much more friendly and have some respect for each other (of course it excludes politicians and authorities ).

Last edited by Rehaan : 25th March 2010 at 19:29. Reason: Posts merged. Please use the MULTIQUOTE button instead of making multiple consecutive posts in the same thread. Thanks.
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Old 21st March 2010, 22:02   #13
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@CPH as per my knowledge it is possible to start a company in India provided you obtain government approval. A starting point would be a good lawyer.I can pm you the number of a friend who is a lawyer who happens to deal with similar stuff. He might be able to help you out.I can send you a pm after contacting him if it would be useful for you.
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Old 21st March 2010, 22:10   #14
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Originally Posted by freewheelburnin View Post
@CPH as per my knowledge it is possible to start a company in India provided you obtain government approval. A starting point would be a good lawyer.I can pm you the number of a friend who is a lawyer who happens to deal with similar stuff. He might be able to help you out.I can send you a pm after contacting him if it would be useful for you.
Yes please and thank you ever so much.
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Old 21st March 2010, 22:35   #15
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Good to hear that you are looking at this possibility. I was also in Germany for 4 years and worked for a Joint stock company there. My primary condition of joining the company was due to the owners interest (Lithuanian) in opening up a company in India. A year back he decided to go ahead and as I was the only Indian in the company he entrusted all the responsibility on me. It was a very valuable experience which I got while setting up the operations in India.

From my experience all I can say is there are only particular sectors which require Government approval, but for the most part FDI (Foreign Direct Investment) is allowed. The process is lengthy but it works (typically takes 4-6 months to start a full-fledged Private limited company). If you wish to set up a private limited company, you require atleast 2 Indian directors. And as for the purpose of formality you need to allot each of the directors minimum of 1 share each.

Depending on nature of work (sales, production, trading) you would be requiring various licences. A consultant would be the best person to handle all the matter and get the things done for you. If you are planning to setup something in Pune let me know, I can recommend the consultant who did the process for us. A friend of mine also handles Frankfurt school of Business operations in Pune and has some good contacts in German chamber of commerce. You can PM me if you want to discuss in detail.

willst du mehr informatzion haben, schreiben mich an (nur verzucken wei ist mein Deutsch bald 2 jahr)
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