India and Japan have complemented each other productively on the global stage, with both the countries sharing a high regard of mutual business interests. Japan has carved a niche of its own as one of India’s prime business allies. Japanese Industrial Townships (JITs) have been established dedicated hubs across several states and various key Indian cities.
3rd largest FDI partner
Japan is currently India’s 3rd largest investor in terms of FDI, with investments to the tune of 30.27 billion USD from April 2000 – March 2019
14th largest import partner
Japanese imports to India were worth 12.77 billion USD in 2018-19, making it India’s 14th largest import partner
Over 1,400 companies
As of date, over 1,400 Japanese companies (ranging from SMEs to major corporations) have set up operations in India
Over 5,000 business establishments
As of date, over 5,000 Japanese business establishments have been set up in India
JITs have tax incentives and exemptions
Tax incentives, exemptions in utility charges for 5-10 years, single window clearances and quality infrastructure are some of the benefits provided to investors in the JITs
In order to gain an understanding of the local market and develop a medium or long-term presence, a Japanese company can partner with an Indian company to form a joint venture
Wholly owned subsidiaries are preferred as the mode of incorporation in cases such as setting up a manufacturing capability, or aiming to establish long-term market presence
To study the local market or to stay in India for a short-term duration for certain projects or activities, incorporation of liaison offices, branch offices and project offices are preferred as the mode of entry
While evaluating the Indian market for business expansion and to better prepare for undertaking operations in the Indian market, below are a few important aspects that should be considered
Indian tax scenario
An evolving tax scenario which aims to strike the right balance between direct taxes and indirect taxes can be seen as a challenge for market entrants
Ease of doing business ranking
After climbing to rank 63, India has steadily improved in the EODB rankings and now plans to improve further with focus on 6 major areas
Evolving market and consumer dynamics
Modernization and a rising urban population has heavily influenced consumer dynamics, as India continues its push to become a global business hub
A suitable base of operations
A strong push towards business-conducive public policy and development of relevant ecosystems has primed the country for foreign entrants in its market
As a multi-disciplinary firm, Coinmen helps companies by helping them incorporate, operate and expand in the Indian landscape. Via our specialties in financial and business advisory, we undertake a holistic approach to bridge cultural and business gaps for continual growth. Our range of services is highlighted below.
Download our firm profile for complete details on what we do to help Japanese companies do business in India.
