Aura Consulting, based in India ,is a prominent company comprising of Indian chartered accountants, corporate financial advisors and tax consultants to administer all inclusive range of accounting and financial services to clients in India and abroad. We offer information on best business practices and customized advice on company formation in India, private limited company formation, public limited company formation, online accounting, corporate finance matters and all complex issues concerning foreign investment in India.


India- the springing market
India, the land of budding entrepreneurs eclipses major competing countries of the world in its ability to conduct business operations of various kinds. Benedicating the 1.5 plus billion population with a large base of educated middle class numbering over 300 million lies 49% of the total population under the age group of 25. This gives India a distinct advantage of being a nation of aspiring and educated youngsters. Despite the major plus points there lies a significant catch and that is majority of, roughly over 70% of the entire population of India remains untapped. This provides a large virgin untouched market to foreign companies to invest and run business. This coupled with successful democracy, liberalized market structure, sophisticated financial sector with stable capital market and independent judiciary attract many foreign entrepreneurs to set up their bases in India. Today India's position in the global arena has come to a crucial stage. On one hand, it is a fast-developing economy having experienced almost a decade of structural economic reforms. On the other hand, as the world becomes smaller and smaller, the importance of a large consumer market (of a billion heads and growing still) can hardly be downplayed.

The investment-friendly land
India is the fifth largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. A strong member of WTO India has bilateral trade agreements with a number of countries to boost trade. Since 1991 India has been actively courting foreign direct investment. The human capital, the educated workforce, the ‘international brand’ for technology capability, the motivated workforce with both a work ethic and a hunger for success, the democratic principles and educational systems at the elite colleges, all favor India. Since 1991, with rolling out red carpets to multinationals Indian government began to actively support foreign investment by erasing curbs on growth, mergers & acquisitions, financing restrictions, foreign tie-ups and enlarging private sector and allowing 100 foreign direct investment in apart from allowing special investment benefits for certain selected areas of businesses including power, software, and many export-oriented businesses.

RBI Automatic Approval
Getting an automatic approval from the Reserve Bank of India (RBI) is quite easy for foreign investments. The following are the various businesses that can procure automatic approval from RBI

  • Investments up to 50, 51, 74, and 100% made in selected prime businesses.

  • Fully Export Oriented Units (EOU) and those export units established in the selected Export Processing Zones

  • Technology agreements that fall under certain selected category.

Starting business activities in India
The number of steps entrepreneurs can expect to go through to launch a business in India have been curtailed to only 11, it takes an average of 35 days to incorporate a business in India as per the latest world bank report of 2007. Government of India is vigorously promoting infrastructure development as one of the key area of focus. Also efficient power supply and excellent telecommunication network plays a very important role in the country's development. So Government has liberalized both the sectors to private and foreign participation. Goldman Sachs in its famous 2003 BRIC report argues that the economic potential of Brazil ,Russia,India and China is colossal and that that they may become among the four most dominant economies by the year 2050 ,with India and China becoming the dominant supplier of manufactured materials and services to the world.

India is one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business, particularly in tourism, information technology (IT) and agricultural sector. There exists immense investment opportunities both at the national level and the State level.

India offers huge untapped potential to all the foreign companies wishing to engage in business in the country.

 
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