You may have read our recent post about India as a potential destination for businesses considering expanding overseas. If not, you can read it here.
And who should make front page news this week by setting up business in India? None other than global brand and the world's largest furniture retailer, IKEA.
The Hyderabad store is IKEA's first opening in India, followed by plans to open shops in all major cities over the coming years, with sites already purchased in Mumbai, Bangalore and New Delhi.
IKEA's global Chief Executive Jesper Brodin said, "The market of India for us is a dream."
Why so? India's home goods market is growing. Research specialist, Forrester, currently values that market at $40 billion. This is set to increase with the ongoing rise of India's middle class which is expected to more than triple to 89 million households by 2025.
The world's largest retailer, Walmart, has also recognised the enormous potential of the Indian market and recently agreed to buy a majority stake in Indian e-tailer Flipkart.
It is therefore no coincidence that Foreign Direct Investment (FDI) inflows have increased by 37% since 2014. The main reason behind this was the launch of the “Make in India” initiative to encourage companies to manufacture their products in India and also to increase foreign investment.
It seems to be working, so if you are considering expanding overseas, India could be an ideal location. Just make sure you do your homework, as for any other location.
Starting up in India
What can we support you with?
"Quick Start" company formation and registration allowing you quickly enter new markets;
Customised payroll solutions to set up payroll in new locations;
Tax advice and compliance services in relation to your employees;
Corporate tax advice and compliance services including tax and social security reporting;
Selection and recruitment of qualified candidates to reduce your time spent on the recruitment process;
Global mobility services including visas and immigration, relocation and destination support, travel and accommodation booking;
Tailored cultural awareness programmes.
Our service takes care of the set up of your corporate and financial structure, the recruitment and deployment of your staff and the management of your administration, reporting and filing requirements.
Contact Shelley Lloyd or Stuart Beaty to find out how we can support you with any venture into India.