The Perils Business in India
Business has its own set of highs and lows and it needs strategic planning, a business model and effective marketing strategy in order to have its presence felt in the market and to establish an enduring image in the minds of consumers. It is growing business that has led to growing need of business consultants.
Each nation has its own perils as each economy functions in its own peculiar pattern that sets it apart from other economies, developed developing or underdeveloped. India being a developing economy and high population and large market has its own set of problems. Let us see what could challenges of doing business in India.
High Cost and Time
There is a high cost and time of starting a business. In India, there is much time cost gone in getting started with a business and its formalities. One needs to have a profound local knowledge and legal as well. There are many formalities that need to be dealt with and the average time estimated to complete all formalities is 1. 5 to 2 months.
Construction Permits are something to run round for and completing all the construction permits will involve 200 days of rigorous running around., the Storm Water and Drain Department, the Environmental Department, Tree Authority the Traffic & Coordination Department and the CFO the Sewerage Department, the Electric Department are some of the permits.
Electricity is very important to any kind of business. Especially when you are having business that involves a physical place to carry out business. Getting electricity in India is not very expensive yet it involves a long procedure that drains you out.
Registration is one of the most important of legal formalities. It involves many legwork and has a good amount of money involved. Sub-Registrar of Assurances, Land & Survey Office and lawyers charges are some of the major payments to be made. Besides, there are many miscellaneous payments that are made.
Taxes rates in India are 30% right now. Apart from these, there are many charges that are to be included when laying down the foundation of a business enterprise and running it.
Although it is widely believed that India has opened ways to international trade, it does not come with easy procedures. There are several layers of bureaucracy that needs to be overcome and numerous formalities.
One of the challenges of doing business in India is legality. In case you get into any kind legal insolvency then the cost involved is quite high and the amount of time is high too which does not even get solved with spending of more money. India has a slow courtroom process that takes years before it gets solved.
Needless to mention that India is a multicultural nation and there are many cultures that are co-existing. While culture may help in generating business ideas, it sometimes could be the cause of hurdle. It is difficult to target all the consumers of India with single market strategy as North is completely different from South and so is east from West. Business consultants can help out in targeting the audience.
An important determinant in getting the business started, this process is rather slow and difficult in India. Loans are not easy to get and there are large complex process that need to be followed. Compared to nations like UK, USA and France and China, the process of loan in India is quite complex slow and credit granted is also low in amount.
Although there are many problems that are there is laying the foundation of your dream business there are agencies that will help in getting the right work done on your behalf in return of a decent fee. These business consultants can be consulted if you do not want to waste time in all the legwork.