Doing business in India: Avoiding expansion pitfalls
Businesses looking at international expansion today have India high on their lists. With the world’s second-fastest growing economy and has an annual GDP growth rate of more than 7 percent, it’s no surprise. Further evidence from the Regus Global Confidence Index, which rose by 11 points for India since April 2011, showcases the optimism that businesses have about the potential growth in the country.
Though this emerging economy is fast rising above its reputation as the “back office” of the world, setting up international operations in India can be quite complicated for foreign companies: a different tax and regulatory framework, distinct cultural norms and a time zone inconvenient for those in the Western Hemisphere are just the beginning. And setting up your operations incorrectly can result in significant and unexpected taxes or fines.