Judicial, Fiscal & Government Regulations
A long-term view is required.
India has a well laid out legal system/process.
Besides the taxes levied by the central government – customs duty, central excise duty, there are taxes levied by the state government too viz., value added tax, central sales tax, entry tax/ octroi.
The Indian market is extremely price sensitive and identifying appropriate markets and segments forms a core element of the entry strategy.
A differentiated approach is required depending on the business sectors and target markets.
If required, work with specialist consultant organizations and develop a thorough understanding of the market.
Speak and listen to other Dutch companies operating in India.
Consider carefully the ‘need’ for a local partner: in most activities, the government regulations allow a 100% foreign ownership.
You may find that you actually need a Country Manager, and not an Indian investor partner.
When you decide to team up with a local party, it is advisable to get the best help available to do all the checking and for preparing the legal framework.
Enforce all oral understandings in writing; do not leave anything uncovered- even in confidential agreements.
Always have an exit clause in your partnerships.