Pre-investment Phase

/Pre-investment Phase

Pre-investment Phase

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.

Business Structure:

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.

By | 2017-09-20T06:33:20+05:30 September 19th, 2017|