For doing business in India you have to first decide on the industry and its location, select technology and equipment and decide on the source of raw materials. It is mandatory that you do a cost benefit analysis and think of ways to minimize cost of production and maximize profit margins.
The major challenges for starting and doing business in India are related to dealing with construction permits, obtaining necessary licenses, completing required notifications and inspections, employing work force or hiring and firing laborers, registering property, getting credits, paying taxes, enforcing contracts, trading across borders and closing business deals.
The cost involved in registering property in India and also the percentage of income that entrepreneurs have to pay as taxes is a bit on the higher side compared to other countries. On the other hand, the costs and time involved in importing and exporting shipment of goods are comparatively less in India. There are also flaws in India’s existing bankruptcy laws and the entrepreneurs who are seriously thinking of doing business in India should be aware of the procedural and administrative flaws in bankruptcy processes in India.
Starting a business in India requires a lot of formalities to be completed. These formalities range from filing a proposed name of the company to the Registrar of Companies to obtaining company seal, and tax account number, procuring a certificate of incorporation, registering under the shops and establishment act and so on and so forth.