Business in India

1. INDIA
A12149 Maiko Yoshida

2. 3,287,263㎢
7th largest

5. 1.27billion
2nd largest

9. Hinduism
Islam
Sikhism
Christianity
Buddhism
Jainism
Zoroastrianism
Judaism

10. GDP: $1,876,797,199,133
GDP per capita: $1,165
GDP growth: 5.0%

12. Major industries in India
 Textile industry
jute, wool, silk, cotton
 Chemical industry
plastic, pesticides, beauty products
 Cement industry
has 115 cement plants and 300 small cement plants
 Steel industry
400 years old
 Software industry
massive expansion in the last 10 years
 Petroleum industry
one of the most flourishing oil markets in the world

13. Environment (current issues)
 Deforestation
 Soil erosion
 Overgrazing
 Desertification
 Air pollution
 Water pollution
 Tap water is not potable throughout the country
 Huge and growing population is overstraining natural resources

14. Language
There is no national language
Official language: Hindi
Commonly used: English
Over 400 languages
Over 2,000 dialects

15. Clothing
Sari Dhoti Kurta

16. Facts in India
 It’s illegal to take Indian currency out of India
 Breathing the air in Mumbai, for just one day is equivalent to
smoking 100 cigarettes
A man married a dog in India as atonement
 India has more mobile phones than toilets
 India has the largest slave population in the modern world
with over 14 million slaves

17.  The number and the concept of zero was invented by Indians
 India has the largest population of English speakers in the world
 In the next two to three years, 25% of people entering
the workforce will be Indian

18. Number of Japanese companies in India
1,072 Japanese companies in India (2013)
Number is doubled in 5 years
Parts manufacturer, health line, service industry

19. Ease of Doing Business in India
Rank 140th in 2014
 Starting a business: 156th
 Dealing with construction permits: 183th
 Enforcing contracts: 186th
 Paying taxes: 154th

20. Starting a business in India
13 procedures in India
(7.9 in South Asia, 4.8 in OECD)
30 days in India
(16 days in South Asia, 9.2 days in OECD )

21. Starting a business in India
1. Obtain director identification number (DIN) online 1 day
2. Obtain a digital signature certificate 1 day
3. Reserve the company name with the Registrar of Companies (ROC) online
2 days
4. Pay stamp duties online, file all incorporation forms and documents online
and obtain the certificate of incorporation 5 days
5. Request and obtain Certificate to Commence Operation 5 days
6. Make a seal 1 day
7. Obtain a Permanent Account Number (PAN) form an authorized franchise
or agent appointed by National Securities Depository Services Limited
(NSDL) or Unit Trust of India (UTI) 7 days
8. Register with Employees’ Provident Fund Organization 12 days
9. Register for VAT online 10 days
10. Register for medical insurance (ESIC) 9 days
11. Obtain a tax account number for income taxes deducted at source from
the Assessing Office in the Mumbai Income Tax Department 7 days
12. Register with Office of Inspector, Mumbai Shops and Establishment Act
2 days
13. Register for profession tax 2 days

22. Government incentives
No special incentives for foreign affiliated firms except......
 Infrastructure sectors
 Investing for research and development
 investing for generating electricity
 Renewable energy
 Mineral oil sectors
 Hospitals

23.  Infrastructure sectors
Deduction of 100% of profits from business for 10
years
 Mineral oil
Deduction of 100% of profits from the Business of
Refining Mineral Oil for 10 years
 Hospital
Deduction of 100% of profits from business of
operating and maintaining Hospital for 5 years

24. Special Economic Zone (SEZ)
 referring to economic zone
 In these zones, business and trades laws differ from the rest of the country
 Offering tax and other incentives to their resident businesses
The objectives of SEZs:
1. Generation of additional economic activity
2. Promotion of exports of goods and services
3. Promotion of investment from domestic and foreign sources
4. Creation of employment opportunities
5. Development of infrastructure facilities

25. Examples of the advantages setting up a manufacturing platform within a SEZ
 Duty free domestic procurement of goods for the development and maintenance
of your company
 100% income tax exemption on export income for first five years, 50% for five
years following
 Exemption from Minimum Alternate Tax, Central Sales Tax, Service Tax, State
Sales Tax, and a number of other taxes usually levied by local governments
 External commercial borrowing allowed up to US $500 million a year without
restriction
 Permission to manufacture products directly, as long as the goods you are
producing fall within a sector which allows 100% FDI

26. Documents required for exports in India
Principal Documents
Commercial Invoice
Packing List
Bill of Landing
Certificate of Inspection
Certificate of Origin
Bill of Exchange
Shipment Advice
Insurance Certificate
Auxiliary Documents
Proforma Invoice
Intimation for Inspection
Shipping Instructions
Insurance Declaration
Application for
certificate of origin
Mate’s receipt
Letter to bank for
collection

27. Japan to India
Toilet
 High quality of toilet
 Hotel
Fixed price: ¥360,000

28. From Kobe port to Chennai port
360,000 x 0.6 = 216,000 (cost)
216,000 x 0.03 = 6,480 (freight)
216,000 x 0.05 = 1,080 (insurance)
216,000 + 6,480 + 1,080 = 223,560 per unit
Chennai port to Hilton hotel
223,560 x 0.288 = 64,385.28
(Basic custom duty + additional duty + additional duty of customs)
223,560 + 64,385 = 287,945
287,945 x 0.01 = 2,879 (transport cost)
287,945 + 2,879 = 290,824
290,824 x 1000 = 290,824,000
¥290,824,000
(Cost that Indian company imports toilet and send it to Hilton hotel)

29. India to Japan
Tea set
(Darjeeling, Nilgili, Assam)
 Premium
 Selling at department store or a year end present
 Improving India’s image

30. From Chennai port to Kobe port
2,000 x 0.6 = 1,200 (cost)
1,200 x 0.03 = 36 (freight)
1,200 x 0.005 = 6 (insurance)
1,200 + 36 + 6 = 1,242 per unit
Kobe port to SOGO in Sannomiya
1,242 x 0.1 = 124.2 (tax)
1,242 + 124 = 1,366
1,366 x 0.01 = 13.66 (transport cost)
1,366 + 13 = 1,379
1,379 x 1,000 = 1,379,000
¥1,379,000
(Cost that Japanese company imports and bring it to Sogo)

31. Thank you!