COMPENDIUM TO STARTUP A BUSINESS IN INDIA – ALL YOU NEED TO KNOW

In the present scenario, India is one of the best global destinations for future investors to invest in. What becomes most important and the very first step for those who desire to put their money in the market is to have a clear cut idea of the market they want to enter. An entrepreneur must analyze all the factors that make it suitable for your business. The research for this understanding should be thorough taking into account all the aspects of the business.

At Anakeen Business, we aid all budding entrepreneurs by providing them every relevant as well as reliable data after processing all the research methods available and authenticated data sources. The expert team of Anakeen knows this market or the industry very well and henceforth offers feasible advice about the effective market strategy to business starters to enter in the Indian market.

All of it looks very difficult if looked on a wholesome basis but the moment we break it down to its constituents – it starts becoming easy, more understandable.

At Anakeen, we have been doing it for many years and we bring this knowledge to you today.

EXPLORE – ENTER – EXPAND

With this mantra of EXPLORE – ENTER – EXPAND, we at Anakeen break down the efforts to better propose a business what to do next.

Though the market conditions keep on changing quickly, still we realize well-planned is half done. Expansion can only occur if the Exploration is done properly. Now let us go through these steps one by one.

EXPLORE

MARKET REPORT / INDUSTRY ANALYSIS

MARKET ANALYSIS

MARKET ANALYSIS

Being an effective market researcher, we do analyze all about varying companies, respective product segments, industry leaders and human resources.  We do keep a close check over the Size of the market, scrutiny of the Competitors around in the same industry, do Sourcing Analysis, assist a person to identify the Suppliers and make a report on the thorough Product research. Apart from this, we also make the Pricing prevalent researches of the market and make studies of the effects of the Regulatory Environment on the business or the market.

There are two types of market research.

Primary Information/Research– The main motive of primary research is to gather and explore the data of current sales and potency of current practices. All this will give you an idea about your competitors who are along with you in the competition. There are various things that are included in the Primary research. They are as follows:

  • Online surveys
  • Interviews (telephonic/face-to-face)
  • Questionnaires by mail or online
  • Potential clients or customers
  • Working areas
  • Price information

Secondary Research– Objective of secondary research is to analyze the reports and study of government agencies, trade associations, and target segments.

Without a clear understanding of both parts of market research, this study will not be completed in any case.

At Anakeen Business, we offer business starters an opportunity to have a real-time interaction with the stakeholders such as suppliers, distributors, retailers, potential buyers, government bodies among other stakeholders in our market exploration methodology. With desk-research as well as an interview with indispensable stakeholders of the market further helps in measuring the size of the market. We not only provide innovative & relevant market-working ideas to your business but also accord you incredible information over the technical barriers, market options, pricing, distribution channels and the working business leads and partners.

To initiate your business, what basically you crave for is just a perfect plan, operational strategies and a perfectly defined hierarchy.

INDUSTRY ANALYSIS

INDUSTRY ANALYSIS

Listed below are some of the grounds of market industry analysis that we at Anakeen Business pay specific attention:

Market Size– Once considered then there are two types of market size that needs to be understood.
One is an addressable market and another one is an available market. We do help those innovative minds by ascertaining the size of the addressable as well as available market, to assess total revenue opportunity for your products or services, and examine the availability of people.

Competitor Analysis– Analysis of the competitors offers you information about strengths and the weaknesses of your competitors. Also, it helps in investigating the current marketing strategies of various organizations. Apart from all these, it also helps in eradicating the barriers they have created in the market. Anakeen Business helps you in selecting a strategy to enter the market and create your own niche in the market.

Competitor Analysis

Sourcing Analysis – A regular & robust sourcing pipeline is an important aspect for a business to flourish.  Anakeen Business aids you with the investigation of sourcing points to get the assurance of the maintenance of consistent supplies.

Identification of Suppliers– This process deals with the evaluation of variant firms, its identification as well as analysis of the terms and conditions of the contract with the suppliers. This procedure helps in reducing the costing and time of the market, improving business quality, quality of products for any business. While choosing suppliers we do make sure to pay extraordinary attention towards these pointers that are:

  • Identification of potential in the suppliers, and
  • Short-listing of the suppliers

Product Research– This gives information about the specifications of the products. Specialized features of the products and services help to understand the mood of the people. This helps to get a clear picture of what people desire for. Anakeen Business offers you a helping hand with the product research to provide the feedback and workability of the product in the Indian market industry.

Pricing– Market scenario, payment ability, manufacturing price, trade margins and input cost and many more defines the pricing strategy of a market industry. Pricing is important to the marketers because it shows assessment of marketers of the value customers see in the product or service and are willing to pay for a service or product.  Marking it as a fine stroke in a one go is an indispensable part or else the product will its chance.

pricing strategy

Regulatory Environment Analysis– The regulatory environment is now becoming the topmost issue that has a great impact on any business. Most CEOs ends up at spending much more time with government officials and regulators. However, a minute alteration in the environment can make a big difference in the future of the numerous companies. We at Anakeen Business have an experienced team that identifies the regulatory & policy environment on the whole and understand the triggers to help assess the future entrepreneurs towards a better tomorrow.

With the holistic view of the industry imparted by Anakeen Business, one can move on to the next step of your decision making very confidently.

Entry Barriers– Barriers to entry deals with the issues and obstacles that make it problematic to enter a given market. These barriers can be of various types. For instance, government regulations, technological issues, startup costing, education and licensing requirements are included in this list. We at Anakeen Business aid you to crack them all in a series.

Entry Barriers

 

Location advantage taking into Account Government Schemes as Well–   Everyone wants an advantage of taking suitable location under Govt. schemes for his or her business. If an organization selects an unfit location it may have inadequate access to workers, transportation, customers and many more. However, in case, if it is within some Govt. Schemes it will be beneficial for the company as it will affect the costing of the company. The Location under Govt. schemes plays a significant role in a company’s profit and success.

There are numerous advantages to getting a location under Govt. schemes due to many reasons. For example, some are- easy to access funding, reduces cost, can also apply for government tenders, you can choose your investor, chance to meet other Entrepreneur and tax saving for investors. Anakeen Business does thorough research on an advance and gives information about any Govt. Schemes which are already working schemes and are coming in future or are directly as well as indirectly related to your business.

Technical Trends– Evolving tech has had greater impacts on the businesses than ever before. Artificial Intelligence or the machine intelligence highlights the creation of intelligent machines which work as same as humans. With the help of the machinery, you can pace up your functioning. Apart from this, it will also make a huge difference in the reduction of human efforts. Heavy industries, Banks and Financial System, Medical Science, Gaming Zone, Air Transport, and in many businesses, there is a heavy use of artificial intelligence. Anaken Business always helps in generating many more leads of business and eradicates the pressure of work in an organization.

JVs, PARTNERSHIP

It is a common perception made by numerous start-up owners as they assume the whole nation, India as just one single market. If one thinks like this, it is absolutely incorrect. Along with 1.30bn population, 29 states and 7 union territories, India is such a nation that varies at every 200-250 km. What works in one state may not work in the other. The cultural ethos changes after few hundred kilometers.

Appropriate analysis of the expectations of the stakeholders is an indispensable task. ‘Unreliable business partners’ is a likelihood that springs up regularly. There exist some typical issues that are related to the management part as well as from corporate governance. Understanding that India needs more than just structures to work is a reality that companies coming in India realize after making mistakes.

We at Anakeen Business provide an assurance to all the budding entrepreneurs that we dwell on local structures, plus deal with reliable business partners and are pretty efficient at creating measures for monitoring their results effectively. This also makes sure of the fact that sales structures at ground levels are delivering the required results.

Sales & Distribution

Sales & Distribution

Making planned things done accordingly requires you to be 110% assured of the joint venture you are connected to or while choosing your joint venture partner.

Getting in touch with important customers is the most crucial step of this process. Anakeen Business helps you get first-hand as well as fully furnished information about the market industry to investigate the apt use of a particular sales channel or to examine the usability/desirability of one’s own product in the Indian market.

The upcoming stage of responsibilities that come along in front of the business owner includes a correct choice of importer, distributors and dealers. In this phase, we as Anakeen Business help you to guide you with the most applicable match for you in accordance with your business. In the category of Sales and Distribution, we will be supporting you with the creation of sales structures, the formation of metrics for assessments.

These JV partners need to be chosen with due care as it now evident. Due Diligence is a must for these partners.

Due Diligence

Due Diligence

Due Diligence is a complete procedure of thorough research and inspecting every single aspects and statements of a capable JV partner. The goal of Due Diligence is to ensure the enterprise has the information stakeholder with whom they need to execute their plans and strategies.

With the help of numerous highly experienced as well as enormously talented experts who have already served various clients, Anakeen Business facilitates a robust due diligence in a non-conflicting manner.

Now that we have got the basic understanding after EXPLORING the Indian market and we are reasonably convinced that we should be in India for our business let us dive a little deeper and find out what all we have to do while we ENTER the Indian market

ENTER

Entity Incorporation

India has served many entrepreneurs who established their businesses. Just like any other country, India has taken care of highly differentiated needs of varied individuals or corporations all around who tend to set up their start-ups. There is a type of structure which offers benefits to the owner whether the owner is a sole proprietor or in partnership including tax deductions and liability protection. This facility is especially for those entrepreneurs who desire to begin their business at minimal costs and lower compliances. As the list of options as well as opinions get much more complex and complicated, there begins the job of Anakeen Business to help you ease all those things out.

Anakeen offers best ever solutions of all the issues that relates to incorporation of your start-up including easier access to capital, enhancing your business credibility, and managing compliance in a professional way.

As an entrant, you can decide which entry route you want to take. Most of the times, one is not aware of which registrations need to be done and what all business license need to start operations. We at Anakeen Business is always there to guide you regarding all these operations with our best work.

We advise you with the best form of structure & assist with all registrations & approvals required for the same. When the office-project arrives, we assist with sourcing or vendor development, and also advise on market prevalent terms.

A capable entrant who possesses enough potential can initiate his business at any time in numerous forms on the basis of their comfort zones to initiate the whole complex procedures.

Given below is a list of numerous types of corporate or non-corporate entities from where an entrant can begin his business. Having advised the best form of structure & assisting with all registrations & approvals required for the same, we assist with sourcing or vendor development while the office/project arrives– forming Joint Ventures, advising on market prevalent terms & conditions. We negotiate best for our client keeping in mind their interests & long term relationships.

We do help investors with their office/location searches. Additionally, we assist you with every executive searches. Apart from this, all the policies that deal with HR, we do aid budding investors in implementing them on the behalf of company. We are also equipped to formulate & manage HR, Admin & Finance manual. The business development becomes much more efficient and seamless with Anakeen Business as it helps you in regular management reporting that ensures business in a long run.

Indian rules & regulations allow following forms of entities to operate & do business in/with India.

Setting up a non-corporate entity

Non-corporate entities are the ones which where the business wishes to just test waters in the start and wishes to have the office for market development. Examples are as following:

Liaison office: A liaison or a representative office needs approval by Reserve Bank of India. It can undertake liaison activities on its company’s behalf.

Office: In India, there is an option in front of the foreign companies and that is they can freely operate their business from their branch office post obtaining specific approval from the Reserve Bank of India.

Project office: In case, if a foreign company is subjected to execute a project in India in collaboration with any Indian organization then they may set up their office without any approval from Reserve Bank of India. However, they shall be subjected to submit prescribed reporting concordance. As applicable in case of a branch office, a project office is treated as an extension of foreign company and is taxed at the rate applicable to foreign companies.

Setting up a corporate entity

Once it is decided that one has to enter India and start transacting business on its own, one has to get into the legal structure of doing the same. Following are the structures possible.

Wholly owned subsidiary: Numerous foreign companies are allowed to set up wholly owned subsidiary companies in India in forms of private organizations that are subjected to FDI guidelines. Such companies do possesses maximum flexibility to conduct business in India when compared with a liaison or branch office and has following salient features:
•    Repatriation of dividends is allowed without approvals
•    Funding can be done via equity, debt (foreign as well as local) and internal accruals
•    Indian transfer pricing regulations apply

Joint Venture with Indian partner: Foreign companies are permitted to set up joint ventures with Indian or foreign companies in India. There are no separate laws for joint ventures in India and laws governing domestics companies apply equally to joint ventures.
Foreign Institutional Investors: In the financial markets of India, like, pension funds, mutual funds, investment trusts and asset management companies or their PoA holders, there are many Foreign Institutional Investors or FII’s who can invest in. FII’s can invest in all securities in primary and secondary markets including equity and other tools of an organization that are already listed or about to be listed in the stock exchange of India.

Balancing costing& compliance structures along with the generation of business is something what we at Anakeen Business are particularly proud of. We do not allow unstructuredor anypending compliances that may hamper business growth. Get in touch with Anakeen Business today and get the structures corrected for entering into India.

Entity Incorporation

A business needs a power-packed innovative idea and a bit of finance for its inception or expansion. If you have finally made up your mind that you desire to initiate selling products or services among people, then you shall need to work over a new technology platform, with amazing ideologies. Apart from this, it is indispensable to have appropriate legal advices too for better startup and development of an organization.

This becomes even more critical when you wish to expand geographically which is quite alien as well as a complex form of marketing in India. In such cases, you would be having various interactions with numerous stakeholders. For instance, the government, customers, vendors, partners and many more are also included in this list. Agreements along with various stakeholders are one of the most crucial part of any business as it assists in setting up of expectations between the parties when it comes to type, duration of services, quality of products or services, terms related to cost and payments if it is unplanned.

On a broad categorization of agreements, it can be classified into two portions. One, deals with the fact that what are the deliverables for the parties getting in an agreement and other one deals with various penalties that may come across in case, agreed points aren’t delivered.

There are some aspects that need to be clearly stated in contracts, like warranties, IP, Confidentiality, Payment Terms, Termination Terms, and Indemnification.

Legal advice is also critical when it comes to incorporation.Registered office compliances, PAN/TAN compliances, Board Meetings compliances, and a list of compliances on other important matters will save you money, time and many anxious moments later on.

Advisory boards boost up the credibility of any start-up facilitate growth, increases the chances of success.

We at Anakeen Business:

Help you with Agreements’ Writing

Help you with Agreements’ Writing

Many businesses deal with others by the handshake. Handshake deals work well, but not for the whole or for long.The verbal contracts can create problems because in this type of contract, people lie, memories fade, and parties get change. Written Contract is always better than verbal contracts. A written contract is a proof of all the terms of your agreement which are documented.Written Contract saves money and strengthens a business relationship. The benefits of detailed, evident and well-written contract are enormous. We at Anakeen Business ensure that the legal agreements are drafted in a way to suit the organization’s policies while also taking into account the regulatory environment along with the interests of other parties as well.

Help you with vetting of agreements/documents from stakeholders

A legal contract is not only a piece of paper, but it protects one business entity with its rights. An agreement creates and finalizes all the terms and conditions that includes time limit, responsibilities, manners, and monetary issues etc. Every agreement consists of some rules and regulations and everyone has to follow. Some covenants are on documentation, termination, validity, definitions, dispute, non- disclosure, amendments, penal clause, time-period or other such matters.

Legal Vetting means, a careful examination of documents which is to be executed in terms of the law. There are many types of agreements included in this, like- supply agreement, service agreement, joint venture agreement, marketing agreement, and franchise agreement and many others.Always go for a legal vetting to save your loses. At Anakeen Business, we make sure that we cover all the aspects to protect the interests of the clients.

Help you with due diligence on paperwork for any asset like land/property being purchased

This is one of the most important aspects before purchasing a land/property. It is preferred to buy and invest directly on land. Due Diligence offers a buyer the freedom of choice, in terms of use of land, ownership chain, title to the property, layout, design, floor plan etc. One must go for due diligence before purchasing a piece of land or property.

Government Affairs

Before entering Indian market, any foreign company should be well aware of the Government policies. The investor should also seek updated governmental policies on various forums and find out all the relevant details.

As is well known fact that Government provides a lot of sops to the industry to develop particular ear marked areas be it geography, industry or a particular skill set. Also, many times, it also de-incentivizes if it wishes to curtail interest in particular geography which could be due to many reasons like environmental concerns, over dense geography or any other such reasons.

Of course, one has to align with Government policies to have that competitive edge in the business.

We at Anakeen are keenly tuned into Government incentives, policies, schemes & also what Government does not like. India is divided into many States & Union Territories. There are State Government schemes & there are Central Government schemes. We at Anakeen help you get best of both.

Apart from this, going through thorough governmental policies also gives broad information about the Indian market that includes highly profiting areas, its productivity, labor availability, investor competitors, etc. Now, at Anakeen Business, we make sure that legal and compliance professionals and Government affairs specialists monitor the environment for changes in the evolving of marketplace and deliver an update to its clients.

Legal Compliances and Government Affairs services include-

  • Picking up right Government policies for our benefit
  • Sharing information on impending regulatory actions with clients, if any
  • Participation in government- related activities and events through national entities
  • Monitoring of court decisions and legislation that trigger the notification to our customers of any changes needed
  • Allow companies to adopt solutions related to regulatory approval.

Office Space

Office Space

Business needs an office space to work effectively with each other. An effective workplace and office space go in a long way in attracting quality clients and manpower. Office space increases productivity, collaboration, and employs interaction. Your office space speaks your corporate identity and will give your business brand identity. It leads to professional development also. We at Anakeen Business offer a wide range of office solutions through our business working center that provides space to you where small or big teams can operate.

We help in defining need for office space and identifying office location that suits all stakeholders.

Recruitments

Recruitments

At ANAKEEN we know what profile of people you need to run your business enterprise. We have the experience of finding right executives and managers who have the experience, business knowledge, network, and ambition. We identify the leaders who have the right knowledge of business strategies and know how to work effectively within a multi-cultural business. We offer many related services like provision of employment contracts, the time-bound guarantee of replacement, training, issuance of offer letter and agreements, healthcare and health benefits.

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