Unlocking potential through US-Indian Corporate alliance: Cross Border Business Opportunities between for American Companies & US Businesses in India | Ensuring swift India Business Entry

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Introduction to India Business Entry for American Companies & US based Businesses:
The US is one of the most developed countries in the world. It is home to many successful businesses. However, the market is limited and exporting is not always possible for small bsuinessmen and entrepreneurs. In such a case, the best option to expand your market would be to enter a foreign country and open a business there. This can be a risky and difficult task but with proper planning and execution, it can be rewarding. It is not an easy journey to enter into a foreign market and start a business but it can be easy if you collaborate with a local business. A US entrepreneur can collaborate with an Indian Company and offer their services in India through the collaboration. In this article, we will learn more about collaborations and how they are beneficial.

Why should a US entrepreneur choose India for Collaboration? Ensuring swift India Business Entry for American Companies & American Businesses
There are several countries in the world, let’s understand why India can be the best country for collaboration and expansion of your business:
1. By establishing incorporating a company in India, you can expand your business throughout asia. Market presence in India can attract clients from different asian countries.
2. Indian Market has unlimited demand and you can find clients and customer in every sector. There is heavy competition in every sector which help you better your brand/product and service quality. You get to compete with some of the best.
3. Many foreign companies are already in collaboration with Indian Companies and have succeeded in expanding their businesses.
4. India is one of largest economies in the world. Making it attractive for foreign investors. US has been one of the top investing countries in Indian companies in the last 5 years.
5. Indian Government encourages foreign collaborations especially with the US. There are different treaties and agreements between the two countries to promote globalisation. The government has always introduced better schemes and policies which attract more foreign individuals to invest and enter into the Indian Market.
6. Collaborating with Indian Companies can be relatively cheaper than other countries. India is one of the fastest developing countries in the world and the facilities available here cannot be found elsewhere at lucrative prices/deals.
7. It is easy to bring in investments from foreign sources into the Indian market and also to take back the profits and earnings to the foreign countries which makes it attractive to the foreign investors. The only compliances would be to adhere to the rules of RBI and FEMA.
8. You can collaborate with industries set up in SEZ that enjoy many benefits such as Tax holidays and exemption from payment of custom duty. With such collaboration, you can enhance your business and apply to incorporate a company in one of the SEZs in India in the future. The establishment of International SEZ (GIFT SEZ) is one of the best moves by the Indian government.

Benefits for US entrepreneurs for their Expansion in India:
1. By collaborating with an Indian company, the US entrepreneur can have access to the Indian market. He/she can understand the public demands, taste and preferences, market trends, etc. This can be a huge benefit for the entrepreneur in determining what part/section of the society should they target.
2. India is a very big country with wide range of cultures, traditions, seasons, etc. During the collaboration, US entrepreneurs can understand the people of different states and cities. This can help in choosin the ideal location for their business.
3. Collaborating with an existing Indian company can give you insights about the Indian market. The Indian company can share their knowledge on the trends and changes in the Indian market.
4. As discussed earlier, collaboration can help you settle in the Indian market and help you build a customer base. It can help you build a relationship and a network with vendors and raw material suppliers.
5. Collaborating with local companies can help you understand the regulatory and compliance requirements. You can gain knowledge from the legal advisors of the Indian Company.
6. US entrepreneurs can benefit from the research and development department of the Indian company. The US entrepreneurs can get in touch with some tech giants and professionals which will be very useful for them when they incorporate a company.

Which sectors are the best for business?
India has different sectors and every sector has a great business prospect. That being said there is a great competition as well in each sector. Therefore, it is better that the US entrepreneurs collaborate with one of the companies in the desired sector and settle your business and do the marketing for your brand/company in India. The following are some of the most beneficial sectors and are often preferred by the foreign investors.
1. Healthcare. It is one of the sectors with very strict rules and regulations. Therefore, it is better to collaborate before establishing your own company.
2. Telecom. There are several telecom giants in India such as Jio and Airtel. It is one of the most in-demand and competitive sectors.
3. Infrastructure. Entrepreneurs from Texas who are involved in Construction and allied activities can have great success in this sector.
4. Software. US has some of the best software entrepreneurs, and can have great success in India as well.
5. Finance. US entrepreneurs from New York, California, and New Jersey who are involved in finance, banking, and Fintech can collaborate with Indian Fintech companies and establish themselves in the Indian Market.

Is the idea of collaboration good before incorporating a company in India? A realistic approach for American Companies & US based Businesses & Entrepreneurs
From what is understood in the above article, it is clear that collaboration is always the best opportunity. Collaboration can be regarded as a step towards establishing your own business/company in India. Entering a foreign company and opening a company can be very risky and might end up in a business downfall and failure. This might impact your parent company in the US and even to you personally. Therefore, it is better to collaborate with an Indian company and open a limited joint venture. Once you understand the risks and rewards of the Indian market, you can take every decision in a way that would be beneficial for your business.

Conclusion:
Collaborations between Indian and US companies have been taking place for years now. Many companies join hands with local Indian brands and companies to promote themselves, to find the best customer base, for marketing of their products and services. Once your brand is known to the public via the collaboration, it will be easy for you to do your business on your own without any hiccups.

FAQs on Collaboration between US Companies & Indian Companies for India Business Entry:
1. How can a legal advisor help in a collaboration?
Ans: Collaboration can sometimes be tricky for both the companies. The purpose of collaboration, powers and duties of each party/company, sharing of trade secrets and intellectual property, etc., must be mentioned in legal documents. For this process, it is important to have legal advisor especially a local expert who can ensure that there are no loopholes in the legal documents.

2. What is GIFT SEZ?
Ans: Gujarat International Finance Tech-city Special Economic Zone is an initiative of the Indian Governemnt to attract more and more International companies to come to India and establish their business. And to encourage more foreign investors to enter the Indian Market. Finance and Technology entrepreneurs from New York, New Jersey, and California can benefit alot by incorporating a company in the GIFT SEZ.

3. How can collaboration help US companies/brands in settling in the Indian market?
Ans: New companies and brands might face issues with settling their business and people would rather prefer the local Indian brand. In this situation, collaboration can be a great opportunity to introduce your company/brand to the local public in India. When people see that your company/brand is associated/collaborated with an Indian company, they will trust you.
Authored by: Adv. Anant Sharma & Inayat Ahmed

 

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