If the foreign start-up is not confident of its business and just wants to test waters, it should tie up with Indian distributors well known in their field. It should have a decently researched business plan for marketing, credit period, type of goods to be sold, pricing etc.
If its confident enough to enter on its own or business dynamics require an Indian presence, it can then incorporate a LLP or private limited Company depending on field of business/service and the Foreign Direct Investment (FDI) rules.
If executed well, the Indian market is profitable market for most products/services.
You can also read the following answer:
What are the top 5 legal traps foreign companies fall into when entering India?
Describing top 4 traps (Not just legal) 1. Comparing India with other countries – In India, things move slowly as compared to other countries- Permissions, Registrations, Getting off ground etc. But once things move, India is a largely profitable country to do business. 2. Impatience to understand or follow local rules 3. Planning for at least 3 years including investment, revenue, employees, location and assets. 4. In certain cases, not empowering or trusting Indian directors or managers enough Above is based on inputs from our professionals who have experience of more than 2 decades assisting foreign companies to set up company in India. Entrecap Business Services The above answer is with respect to the specific query (with limited inputs) asked on an open platform. It shall …
- Business Start up Team
Entrecap Business Services
The above answer is with respect to the specific query (with limited inputs) asked on an open platform. It shall not constitute or mean or purport to mean actionable legal or professional advice in any manner. Readers are advised to speak specific professional advice before making a decision. Team Entrecap Business Services, while attempting, to answer a query, to the best of its ability, is in no way responsible for any action taken by anyone based on above answer.