The Indian Business Culture
As is often the case with foreign cultures, the Indian business culture is a vast landscape; first-timers typically find it both fascinating and challenging. The fundamental factors that drive the country’s business culture are interwoven with its religious, social and ethnic leanings. It is essential to catch the cross-cultural nuances and really understand the local culture if you want to succeed.
It is also worth noting that local cultural flavours change from one state to the next. Language is not usually a barrier as you can expect most people to speak English. But be prepared for Indian English, with words and phrases that can have different meanings. Once you understand the culture, you will begin to understand the market. It is all about catching the nuances.
Forms of Business Presence in India
Working with India can take many forms. Working from afar with a local partner, distributor, agent or supplier may suit some. However, to drive success in a market like India, local presence shows a certain level of commitment; it ultimately allows a deeper understanding of market dynamics by keeping you closer to the ground realities.
If you’re looking to establish a business presence in India, a good range of options exist. Each has its set of associated legalities, governance structure, regulatory requirements, statutory compliances, liabilities and tax regimes. You must consider all these factors before deciding the form your business will take in India. These can be broadly classified as unincorporated and incorporated forms.
Companies looking for a short-term presence in the India market may be best suited to unincorporated forms, while a longer commitment will likely require incorporation. Apart from areas mentioned above, other factors that can influence your choice are;
- Your purpose and business strategy for India
- The nature of your business
- How you raise the funding
- Profit generation and repatriation
Here’s a close look at the in-depth classification of preferred business forms in India and what each one would entail.