India’s growing economy and skilled workforce make it one of the world’s top destinations for foreign investment, offering unmatched opportunity across virtually every sector.
A huge potential of Russian market for foreign entrants is quite obvious due to the set of well-known reasons. But what is not obvious that there are also some specific features of the market that make it hard if not impossible to assess or analyze without local expertise. Foreign companies, which want to enter the Indian market, often face several difficulties:
- Absence of reliable information on market size, structure, competitors, and distribution channels
- Unfamiliarity with Indian business customs and negotiation culture
- Language and communication barriers
- Finding a trustworthy local partner or distributor
- Choosing the most effective and cost-efficient mode of market entry
On the basis of our deep knowledge of the Indian market and our wide network of contacts, we help foreign companies from any country enter the Indian market and establish a strong presence.
We will be doing:
● Assessment of market, segmentation and niche identification;
● Understanding of market structure, value chain and channels of distribution;
● Identification of the most promising geographical markets, segments and sales channels for the company;
● Market entry strategy development: distribution, marketing, pricing.
● Choosing the most efficient model of market entry: independent entry or partnership, exporting or local production;
● Help in finding a local partner.
● Identification of sales growth potential in Indian markets where you are already present.
We will also help you in setting up a subsidiary or in opening up a new company.
Setting up of subsidiary in Global Markets by the Indian companies:-
Here we are considering only Russia. At the same time, we would also like to mention that the Incorporation laws vary from country to country in the CIS. We possess all the expertise to set up a legal entity in any of the CIS countries.
Representative Office and Branch
Representative office
The officially recognized subdivision of a foreign legal entity is an accredited representative office. The foreign companies could engage in commercial operation under a strict interpretation of the law. It could be done through registering a branch or a company in Russia.
Branches
There is a special procedure for registering the Branch with the Russian authorities.
● This procedure consists of several stages:
● Accreditation with federal bodies.
● Tax registration.
● State statistics authorities registration.
● Pension, medical and social security funds registration.
Then it is necessary to open the bank account.
Companies Incorporation
Limited liability companies
A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. Under the Civil Code, a limited liability company is established by one or several persons whose charter capital is divided into shares.
The company is taxed at the corporate level, and then, upon distribution of dividends, shareholders pay income tax (personal or corporate). India’s most popular structure, the Private Limited Company (Pvt. Ltd.), offers flexibility and limited liability recognized across all industries.
Joint-stock companies
We assist with all required documentation and government registrations to ensure a smooth and compliant company setup. The shareholders are not liable for its obligations and accept the risks of losses within the limit of their respective stakes. Shareholders could sign any agreements that will regulate their rights.
JSC may issue stock. There are open and closed joint-stock companies in Russia. In the whole world it is known as private and public companies. Open joint-stock companies must disclose certain financial and other information annually.
From the moment of the company’s register, it is considered that it is created. It could be created as a new entity as through reorganizing. The charter of the joint-stock company is 1,000 shares. Depending on the number of shareholders, there are different management bodies. In the company where are less than 50 shareholders the management Body is General Meeting of Shareholders. The board of directors takes place in joint-stock company that has more than 50 shareholders.
The liquidation process might be:
● voluntarily
● court decision
Full and Limited partnerships
Concerning to the Civil Code of Russian Federation two partnerships could be registered:
- Full partnership.
The partners bear (full) joint and some liability for the partnerships obligations.
- Limited partnership.
It has both full partners and partners whose liability is limited to their contributions.