Open a business in India. Indian business: how to open a business in South Asia

Now let's talk about how to do it.

Business organization in India

Before "throwing your chest into the embrasure", you should understand how small business works in India.

It is worth noting that in India there is a clear division of small, medium and big business which, in turn, inhibits the growth of monopolies.

So, small businesses include enterprises and organizations whose fixed capital (equipment, vehicles, buildings that are used for profit for more than 1 year) does not exceed 30 million Indian rupees or 667,000 dollars.

The government pays special attention to the development and support of small businesses, for example:

• reduced tax payments;
• there are no administrative barriers;
• financial and technical support is provided.

It is extremely important in which region you start your business. In some areas, business registration is quite simple. Outside these areas, in order to formalize your business, you will need to go through a certain number of instances.

At the same time, it is worth considering the fact that there is a clear division of labor in the country. For example, in a hairdressing salon, the hairdresser himself is engaged only in cutting, other services, such as washing and drying the head, preparing the client for a haircut, are carried out by other employees.

Entrepreneurship in India: Advantages and Disadvantages

There are many benefits to start with. entrepreneurial activity right in India.

First, the Indian economy last years shows stable growth (5-8%), given that many European countries, as well as the United States, are under the pressure of the global crisis.

Secondly, the country is moving away from Agriculture more and more young people are moving to cities. Thus, there are young specialists who need new jobs.

Thirdly, wages in this state are much lower than in many other countries with developed economies. In addition, taxes are reduced for small businesses. The cost of goods such as food, housing, transport, is much lower than in Europe or the United States.

And finally, the government is positive about the emergence of foreign companies in the country and spends heavily on the development of small businesses in India.

However, it is important to take into account the disadvantages that a novice businessman may encounter:

• inability to buy land (only rent is possible);
• the need to coordinate weekends and holidays based on the religion of the workers;
• the cost of goods and services for "white" businessmen differs from the cost of the same goods for Indians.

In addition, there is a tradition of drinking tea during the day. During this time, all workflows are suspended.

How to open a business in India for a Russian citizen

In order for a Russian citizen to open a business in India, he will need to go through several stages.

First of all, you need to get a business visa at the Indian Embassy in Moscow, and then move to India.

Then you need to get an identification director of the enterprise (IND), which is issued by the Ministry of Corporate Affairs in the country. Next, you will need a certificate confirming the right digital signature director, who receive in the management of digital registration.

Next, you need to submit an application to the registration office of joint-stock companies. If you have all the documents confirming your identity, as well as an application in electronic form, the bureau issues a certificate of registration and naming of the company.

At the next stage, a new package of documents is submitted to the bureau in electronic form:

• prepared declaration in form 18 and 32;
• company charter;
• memorandum;
• internal documents of the organization.

The final stage is the notification of the Reserve Bank of India about subsequent transfers Money. After that, within 180 days it is necessary to issue a block of shares. This information must also be submitted to the Reserve Bank.

Small business in India: what is the most relevant area

If you decide to start a business in India, you need to decide on the area in which it is worth starting an entrepreneurial activity.

The IT-sphere is considered the most popular for startups. An entrepreneur who opens his own IT company is exempt from paying taxes for the first 10 years. That is why many foreign companies seek to get into this industry. At the same time, offices of such world-famous companies as Microsoft and Oracle are located in the country.

No less profitable and relevant is the area of ​​waste disposal. Indian companies earn good income from waste collection and disposal in major cities.

Tourism is also one of the popular destinations for small businesses. It is worth noting that travel companies bring the state an income of $120 billion a year. However, only 8% of the country's able-bodied population is employed in this area.

The catering industry is up to date. Small cafes are popular among the population with low prices for food.

And, finally, at all times India was famous for its production of fabrics. In addition, the clothes produced there are highly valued by residents of foreign countries.

How much does it cost to start your own business in India

Now let's calculate the costs required to start a business.

So, we need:

• annual business visa - 19,000 rubles;
• business registration - from 10,000 rubles;
• purchase of equipment and furniture - from 100,000 rubles;
• land lease - from 25,000 rubles;
• the average salary of staff - from 9,000 rubles.

In this way, average price starting a business in India is from 163,000 rubles.

How much income can your own business bring? On average, a small restaurant in GOA, opened by a Russian entrepreneur, brings in an income of 10 thousand dollars a month.

An IT company can earn from $15,000 per month.

It is worth saying that, despite all the opportunities that the Indian government gives for the development of small businesses in their country, one must be prepared for the fact that something can go wrong. To avoid this, we advise you to develop a clear business plan and an emergency strategy.

India is a country with 1.32 billion people in 2017. It is an agrarian-industrial state with a developed industry. It ranks third in the world in terms of GDP, has a fairly developed infrastructure. Despite the above facts, there is a high level of unemployment, which leads to the availability of cheap work force. This is attractive to foreign businessmen. But organizing your own business in this country is not so easy. We will analyze all the necessary data in detail.

Features of doing business in India

Before investing in local companies, there are a few things to consider when doing business in India:

• A lot of competition is associated with a considerable number of foreign businessmen in the country and the willingness of people to work for minimal wages.
• The high level of ignorance makes it difficult to find specialists. This also led to the creation of a tax on education.
• The unemployment rate for 2017 is 6%, which leads to the emergence of cheap labor.
• This is where the principle of division of labor comes into play.
• The unspoken division of the population into castes was preserved, although it was officially abolished in 1950.
• Common a large number of active languages: more than 14 official and 300 minor ones.
• More than 7 types of religions are followed in the country.
• Corruption is highly developed in all structures of the state.

All of the above features must be taken into account when setting up your business in India. They present some difficulties for foreigners. But it is impossible not to notice that the government, for its part, promotes the development of entrepreneurship. There are tax cuts, easing of trade restrictions and simplification of the formalization of the company. But before thinking about organizing a business in a given country, a foreigner must obtain documents allowing him to stay here and conduct business in the country.

Indian business immigration plan

To work in a local organization, it is enough to obtain a work visa. But opening your own business here, you should think about obtaining a residence permit. Immigration can occur through the issuance of a permanent or temporary residence permit.

• TemporaryValid for 12 months, after which it needs to be renewed. This is the first stage of immigration and obtaining permanent resident status. It can be given in connection with work in the country, marriage, the intention to study or start your own business. Upon the first application for a residence permit, a temporary permit is granted.
• Constanttheoretically has no expiration date, but in practice it also requires renewal after 5–10 years. After living in the state for a year, you can expect to receive permanent view for residence. It does not equate a foreigner with the status of a citizen, but gives more opportunities. You can extend your residence permit unlimited quantity once.

Getting Indian citizenship is almost impossible. This is due to the overpopulation of the country. But such cases do occur. To do this, you must go through the previous 2 stages and live in the country for at least 10 years.

We are considering immigration to India as part of starting our own business. To enter the country for this purpose and obtain a residence permit, you must contact the Department of Migration Affairs and submit a number of documents:

1. valid passport with visa;
2. photos 3x4, 4 pieces;
3. a certificate of a bank account with at least 2.5 thousand US dollars;
4. certificate of no criminal record;
5. documentary evidence of the availability of housing;
6. a written statement of further intentions regarding residence (permanent residence or citizenship).

All documents must be translated or drawn up in English language or Hindi. Consideration of the issue of issuing a residence permit takes place within 1 month after the submission of documents. The cost of the procedure will be 200-480 dollars.

If the reason for obtaining a residence permit is to start your own business, you will need to provide a viable business plan. At obtaining permanent residence a few more conditions must be met:

• live in the country for 5 years on the basis of a residence permit;
• not to have offenses and conflicts with legal structures during this time;
• confirm the usefulness of the activity;
• to have good results on the test, which includes an examination of the knowledge of English, Hindi, history, laws and traditions of the country.

When applying for permanent resident status, the application is considered within 2-3 months.

Business Culture of India

When conducting your own business here, you will have to cooperate with residents of the country from different classes. To do this, you need to know the business culture of India.

• Hindus are extremely respectful of the traditions of their people. Here, in practice, the caste system is still preserved. Therefore, it is useful to know what class of people you will have to deal with in order to avoid embarrassment. Also be aware of the holidays. It is advisable to study them so that the scheduled meetings do not coincide with the days of complete inactivity in the country due to the celebrations.

About negotiations. Indians are polite and patient people. Accordingly, the same is expected of foreign partners. They don't like hasty decisions. Therefore, you need to make an appointment a month before the proposed event, and clarify a few days in advance whether it will take place. You can’t call them punctual and they are calm about being late, but it’s better for you to come to meetings on time.

When meeting, it is also customary to shake hands and exchange business cards. It is better that on one side it be issued in English, on the other it is duplicated in Hindi. By doing so, you show respect for their culture.

• Clothing. India is a hot country. AT summer time year the temperature here rises to 50 degrees Celsius, and lasts long enough. Due to the high humidity, this temperature is even more difficult for foreigners to endure. Despite this, it is necessary to follow the dress code: business suits for men, saris for women or business suits with a skirt or trousers. Choose light natural fabrics to feel freer.

Hindus do not like fuss and hasty decisions. Therefore, the first meeting can take place without discussing business matters. It is important for them to get to know a person, and first of all to establish social contact, and then start a business.

Be open, friendly and patient. These are the main qualities of the Indians, which will help you win their trust.

Forms of business in India

This state is the 5th largest market retail in the world. Therefore, it attracts businessmen with different countries open companies related to trade or tourism activities. In the field of these and other services, there are 4 forms of business in India:

• LLC or Limited company. Means the limited liability of members of the company for its debts. It can be limited by the number of shares or invested capital. This is the most common type of organization. The founders can be several people or one. For authorized capital 2 thousand dollars is enough. Income tax for Limited company is 36.59%.
• Joint-stock company can be organized only if there are at least seven founders. Public company may issue shares only if the paid-in capital is more than $400,000.
• Branch of a foreign company or Branch . The second most common form of business. This representation foreign company, which has the right to deal only with export-import affairs. In order to independently produce and sell products, you need to go through the registration procedure with the Reserve Bank of India. The tax is 41.82% of the profit.
• Simple representation or Representative office . Another form focused on a foreign company. This is an office that can only perform information services in favor of the main company.
• Project Office or Project Office . Corporation organized for joint activities foreign company and the Government of India. As a rule, the project is proposed by the government, but is implemented jointly.

The conduct of small business and its organization in India is regulated legal act– The Companies Act.

Small Business Taxes in India

In addition to the aforementioned income taxes relating to a particular form of organization, companies are required to pay some other fees:

Mandatory contributions to the treasury for small businesses are regulated through local authorities, state officials and the central government.

The tax year starts on April 1st and ends on March 31st. Reporting documentation must be submitted by September 30th. Taxes are paid on the 15th of each quarter in June, September, December, March.

When submitting an annual report, a fee is expected to be collected, which is 500 rupees.

How to start a business in India

To open a business here, you first need to get approval from the government. For this, a viable and profitable business plan is provided. The activity of an entrepreneur must necessarily be useful for the state, and, first of all, contribute to solving the problem of unemployment. After receiving a positive response from the authorities and registration work visa a year, a few more steps are required to register a company. Need to get:

1. company board identification number (DIN) (7 days);
2. digital signature certificate in the central licensing authority (7 days);
3. Confirmation from the ROC Registrar of Companies of the naming by filing a business plan and application for registration of the name (5-10 days);
4. certificate of final registration of the company in the Register of Enterprises (7-14 days);
5. business license (30 days).

As well as:

1. register with the tax office;
2. open an account with the Reserve Bank of India.

In general, registering a business in India can take anywhere from a few months to 2 years. Therefore, those who wish to speed up the process can use the services of local law firms. This will help reduce the time required to complete all registration procedures to 1–2 months. The task of these agencies is to correct design, submission of documents and quick registration of the enterprise.

• To start working with such organizations, it is necessary to translate all the required documents into English and certify them at the Embassy of India in Russia. The cost of such services is quite high and amounts to 3-4 thousand dollars. But they greatly simplify the registration process. Do not forget that India has a very high level of corruption, as a result of which it will be easier for local residents to deal with government bodies in difficult situations.

Business in India for foreigners and Russians

• In view of high level unemployment in the country towards foreign investors, the attitude is extremely positive both from the government and from the population. Business here for foreigners is quite attractive and has many positive aspects. But there are also some peculiarities.

The first thing to remember is that a foreigner cannot own more than 49% of a company set up in India. For this reason, a foreign businessman needs to find a reliable local partner.

This rule does not apply to branches of companies headquartered in another country, simple representative offices and project offices.

A foreigner must first obtain a work visa, government permission to build a business, and then you can register a company according to the above rules.

• When working with Indians, it is necessary to take into account the cultural characteristics of the country. In this regard, many entrepreneurs face difficulties, since the difference in cultures is very large. For example, a family is much more important for a Hindu than any job, and he may neglect some of the responsibilities in the company to fulfill domestic obligations. In general, being information-savvy, it will not be difficult for a foreigner to build a business in India.

How to invest in India

India - great option for investment. There is high economic growth, rapid development of the consumer market, and a reliable financial system. The government favors foreign direct investment and has made several changes at the legal level:

• lowered the rate on capital gains to 20%;
• lifted the ban on the use of a foreign trademark;
• enacted a law allowing large foreign companies open stores in the cities of the state;
• abolished the tax on income from exports.

Theoretically, investing in India is easy. But in reality there are pitfalls. The main one is deep corruption. This factor will add a decent amount when making investments. Then follows a long paperwork: the registration of branches will take quite a long time. And pay attention to the lack of qualified specialists in the labor market.

To date, several large investor companies, such as Ikea and Wal-Mart, have abandoned their intentions due to the difficulty of establishing contact with all government agencies in India.

However, investing in this country through the organization of subsidiaries of companies remains popular and profitable.

How to buy a business in India

No less common is the question of buying a ready-made business here. Not all entrepreneurs are willing to start over and build their company from scratch. They go the other way, acquiring an already existing business.

• A foreigner will also need to open a work visa and government approval to do business. The sale transaction is completed in the presence of lawyers, re-registration of documents is carried out with the participation of the ROC, the tax office and the Reserve Bank of India.

Indians are honest and open people. Therefore, buying ready business from a native, don't expect trouble. However, they are reluctant to part with money (respectively, profitable enterprises). Consequently, they like to bargain and are good at driving up the price in the negotiation process.

And also keep in mind that Indians are people who do not like hasty decisions, which means that the deal can drag on for a decent amount of time. It is better to hire a local specialist for your part to resolve all issues about buying a ready-made business.

Where to look for a seller

In addition to direct contact - an ad on the street or through third parties - a ready-made business can be found on Internet sites, contact the seller and acquire a profitable business.

Well-known sites in Russia are:

• jjc.ru;
• partner.ru;
• businessesforsale.ru.

But, please note that buying a business through Internet sites is a dubious act. It is better to find a person who is ready to sell his business on the recommendation of a third party.

How to sell a business in India

If you have already tried yourself in the Indian market and are thinking about how to sell a business here, do not panic - it is not difficult. If the business is profitable, then it will be in demand mainly among foreign investors. You can also post your proposal on the above sites.

The procedure for selling is the same as buying. It is necessary to draw up and sign a contract of sale in the presence of lawyers. Further re-registration of documents lies on the shoulders of the buyer.

Summarize

Organization own business in India for a foreigner is a profitable and simple business. The only difficulty that arises is understanding the mentality and attitude of local residents to work.

• Compared to Russian model business, there are many differences both in the design of papers and the rules for the functioning of the enterprise, and in the attitude of employees to work and negotiation.

In general, it will be easier to open and run your own business in India than in Russia. But it also has its own peculiarities and pitfalls.

India is a wealthy South Asian country with great prospects. This densely populated area is open to the creation of new commercial zones, thereby attracting foreigners to do business. The conditions for registering a company in India do not differ in special requirements. Nevertheless, in order to open a company, it is necessary to have information about the features of the jurisdiction. Experts from the consulting firm UraFinance can help you understand Indian corporate law, as well as buy or register a company in India.

Buy a company in India: characteristics

A client can buy a company in Delhi or any other city in India, regardless of citizenship. The national currency of India is the rupee, however, most financial transactions even between individuals carried out in dollars. This allows you to do business in India in a stable international currency. In addition, local banks open accounts for non-residents in both rupees and dollars. The specialists of the consulting company UraFinance provide a full range of services for registering a new company or buying a company in India in as soon as possible.

In most cases, offshore in India is not provided. However, if necessary, registration of offshore companies for private clients is allowed.

Establishment of a company in India. Peculiarities

Taxes for companies in India

• Domestic companies pay income tax of 30% + 10% surcharges;
• Foreign firms must pay 40% tax fee + 2% surcharge and local fee;
• If there are non-residents in the state, additionally pays 15-30% of income tax;
• Indian legislation provides for the payment of education tax: +2% to all types of taxation;
• The company's property tax is 1% of the total price.

Documents for registering a company in India

To register and start a company in India, UraFinance employees prepare:

1. Charter. Copies provided must be in Indian or English and certified by a notary's wet seal. In documents in without fail the address of the registered office must be indicated.
2. List of staff management.
3. Copies of identification documents on local citizens whose authority allows them to make decisions about the company's activities in India and bank account management.
4. The address in India where the activity will be carried out.
5. Legal name.
6. Company development goals.

Company registration in India. UraFinance services

To register a company in India, you will need to spend a lot of time and effort. In addition, errors during the registration period can lead to a refusal to open a company or restrict activities. UraFinance professionals have enough experience in guaranteed opening of a company and representative offices in India in the shortest possible time. The services of the consulting firm also include:

• Payment of fees and charges;
• Legal support of a commercial company in India;
• Apostille of documents;
• Delivery of documents to the address indicated by the client;
• Rated service;
• Obtaining tax numbers, certificates, licenses, permits, etc.

To take advantage UraFinance services you need to call the indicated phone numbers, send an application via special form on the site or meet with lawyers in one of the offices of our company.

Startup in the field of oil refining. Now the head office of their company RRT is located in the USA, the research center is in St. Petersburg. In his column, Oleg Giyazov talks about how they opened theirrepresentation in India.

A year ago, I designed petrochemical plants for China. It was fantastically boring. So I suggested to a colleague that we take a chance, and we founded RRT, a refining research company. A year ago, we only had a mathematical model new technology receiving gasoline. Today RRT is formally a multinational company. Although the key word here is still "formally". Our R&D center is in St. Petersburg, the headquarters is in the USA, and the representative office is in India. In India, we are just starting up, and this is an interesting case.

The history of seals

You can open a company in India from Russia. To be honest, nothing complicated. Turning to Indian law firm, and they prepare documents in 5-6 days. Then on the Internet you get DIN - the identification number of the director. The next step is the Indian Embassy in Moscow or the Consulate General in St. Petersburg, as was the case in our case. Here you need to put a few stamps.

This is already more difficult. I remember how I came to the consulate. I was greeted by an Indian who speaks classic "Indian-English". That is, it is extremely difficult to understand it. I tried to explain for 20 minutes - it's useless. Under the ear there was a desperate “Where to put something ?!” - the courier brought water to the consulate and also could not get an answer. Finally, a woman appeared in the hall, took my documents and left. After 40 minutes, she returned: “Excuse me, what seals and where to put?”. I explained. An assistant to the consul came out behind her: “You are the first one this year who came with such documents. You have to wait for the consul to just look at them. Then we'll put the stamps on."

For two and a half hours we waited for the consul. “We need to contact the ambassador so that he can just look at the documents. Then we will put the seals,” said the Consul General. An hour later they put the seals on the documents, it remains to pay the consular fee.

“There is no money in the box. So prepare the exact amount or go for an exchange. There is an excellent store here on Vosstaniya Street,” the woman said. Then it turned out that the key to the cash register had disappeared somewhere. In general, I spent 6 hours at the consulate to pay 3,120 rubles and stamp the documents. Surprisingly, it took the presence of the Consul General and communication with the Ambassador to open a representative office in India for one and a half people.

Business Delhi

After registering the company, my colleagues and I flew to Delhi to negotiate with customers. Delhi is an amazing city. In the sense that I was shocked: I expected something completely different. Before traveling to India, we booked a hotel on a website where it was written that the hotel was located in New Delhi, the business center of the Indian capital. “Skyscrapers, something like Moscow City, only better,” I thought then.

At the Indian airport, instead of the ordered taxi, a Stalin-era car arrived for us. We got into a barely alive car with a windshield, there were holes in place of the side windows, not a single device worked. The driver tried to feel the car: he listened to the sound of the engine, convulsively pressed on the pedals and fidgeted in his chair - the only way the car could move and go.

Our chief engineer Dmitry, a native Petersburger from an intelligent family, never swears on principle. But on the way to Delhi, he looked out the window and repeated one word: "Tin." It turned out that New Delhi (like Delhi) is an infinite number of three-story shabby-looking houses. The streets are filled with merchants. They sell absolutely everything in Delhi: you can pick up a stone from the ground and start selling it - this is normal. There are street shaving points, instant haircuts, fast food. At the entrance to shopping centers(tiny by Russian standards) submachine gunners are on duty. Our hotel was also guarded by submachine gunners. Immediately, in front of the entrance to the hotel, monkeys gathered at the bus stop in the morning. And the locals drove them away so that there was somewhere to wait for the bus themselves. On the other hand, no one walks the streets of Delhi in a traditional sari, everyone speaks fluent English. And here is a real cult of education, especially natural science (Indian programmers are already known to the whole world, soon they will also talk about Indian engineers).

The cost of real estate in Delhi is noticeably lower than in Moscow or St. Petersburg. For example, we rented an office in a business center for $200 per month. And this is not a closet with a table and a chair, but an office with an area of ​​​​56 square meters. m with two-room kitchen.

Indian perspectives

It is problematic to meet people who are really decision makers in India. We reached the most desirable person thanks to the head of our representative office in India - Adash. The customer (the condition of the negotiations is not to advertise the name) knows Adash's father well, a well-known professor. The status of a professor in India is highly valued. In addition, the customer's son, together with Adash, received an MBA diploma from the Calcutta Business School.

The start of negotiations was delayed by 3 hours: traffic jams. In Delhi there are actually no rules traffic. For example, a tractor can drive along the “oncoming lane” and this does not surprise anyone. No one even honks - they just let you pass. Nevertheless, the negotiations with the customer lasted only 20 minutes. But it was a fantastically effective 20 minutes.

In general, India is a difficult, but wildly promising market for us. Firstly, it is huge, and secondly, the competition is weak. The main problem of our competitors is that they sell old and fairly simple oil refining technology. Hindus copy it easily and do not pay money for a license.

We have a different situation. Our technology is multiple times more efficient and virtually impossible to copy. What is its essence? Strict environmental standards for gasoline are now being introduced in the world: EURO-5 in Europe, MSAT-2 in the USA, etc. This is a huge problem for oilmen - it is very expensive to produce gasoline according to the new standards. But we know how to produce high-quality gasoline cheaply. It is necessary to use the technology of combining processes. Theoretically, this is a complex technology, but it gives a great effect. After negotiations in India, it became clear that there is a demand for our technology.

Good in Goa! Goa is even very good! It’s so good in Goa that about 50% of the tourists who came here to relax for the first time have the same thought: “In order to come up with such a thing, what business to open here so that there is enough money for the whole season and you don’t have to come back?! ".

At the same time, no one expects to get rich and does not even set such a task. In Goa, there is no energy of big money at all, so the idea of ​​wealth does not capture anyone here. Everyone enjoys ease of communication, simplicity of manners, freedom of movement and democracy. The goal is simple - to live relaxed and earn just enough to live on.

The rich in Goa are even beginning to be ashamed of their capital. After staying in Goa for a week or a month, some of them cut their hair, take off their rings, watches and bracelets, give Armani jackets to taxi drivers, buy Alibaba bike pants for $ 2 and get behind the wheel of an ordinary scooter. They discover what a thrill it is to be back in "pioneer camp" where no one squats in front of you just because you have "crimson pants"!

But the rich just do not need to invent anything in Goa, they are fed by capital from Russia and other countries. Those who have very little money - representatives of the middle class, and even more often - the children of the middle class, are trying to build their own business in Goa. Mostly young people decide on an adventure to build a business in a foreign country. Although, there are exceptions.

I must say right away that it is better to discard the idea of ​​doing business in India at the stage of undertaking, until you have ruined your life and a pleasant impression of this country. As my businesswoman friend said: “Goa - beautiful place for living here, but terrible for doing business!”

Once, starting my business, I was full of bright hopes and illusions. It seemed to me that one has only to inform the world about how beautiful Goa is, how a powerful stream of investments will immediately pour in here and good business people will come. Precisely good ones, because there should not be any "sons of bitches" in Goa in any case!

At that time, I created a section on the site "Maharaja offers partnership." Now I don’t offer anyone partnership, and I don’t delete the rubric just because it is dear to me as a memory.

Let me give you a fact. In 2008, together with me, a few more wonderful, smart, talented young people from Russia started a business in northern Goa. None of the people we started with are doing business in Goa. Some of them have completely left India, others now come here simply as tourists.
If you want my advice, I will give it to you.

Goa has a short season, business here is done only a few months a year. Only two types of business bring real profit: rental housing and restaurants. Few manage to earn more on medicine, excursions and the sale of air tickets. That's all!

No other businesses operate in Goa. People fly here who initially do not intend to spend a lot of money, because Goa has a stable reputation as a cheap resort. In order not to create illusions, I will give you the numbers.

The budget of the Goan holiday-maker is spent as follows. For two weeks of rest, one person spends, according to my estimates, an average of $ 1,800. Of these, a tourist spends $ 700 on an air ticket and a visa, $ 300 on housing, $ 300 on food, $ 150 on souvenirs, things and gifts, $ 100 on smoking and alcohol, $ 100 on renting a scooter and a taxi, more $100 for massages and excursions, $50 for Internet use and mobile communications. Everything, on this budget is exhausted.

The Goan tourist does not intend to spend money on anything else. Therefore, proposals that go beyond this list will simply remain without demand. So really, if you want to earn something in Goa, you have only two options: offer tourists accommodation or food in a restaurant. Both are possible, but very difficult!

To conduct a legal business, you will need to open a company in Goa. This process takes at least 3 months. More often than 6 months. If you think at the same time that the most terrible bureaucracy is in Russia, then you are deeply mistaken! You can't even imagine how difficult it is to get any kind of license or permit in India!

Not a single serious issue in India is resolved without a “baksheesh” in the pocket of an official or policeman. At the same time, one must know to whom to give, when to give, how much to give, and through whom to give. Without this, they will not take a bribe, and they may also be offended: the East is a delicate matter!

The solution of any issue turns into a whole bureaucratic drama and drags on for months. You better not even try to do it yourself! Such an abyss of patience, which the conduct of business in India requires, has not been dreamed of by any psyche of a European person. You will very often want to strangle officials with your with my own hands or shoot yourself. Therefore, your constant companion in resolving any issues will be a lawyer.

At the same time, the only goal of the lawyer, like all other Indians around you, will be to rip off as much money from you as possible. After all, the lawyer's interest is not in your prosperity, but in his own!

At the same time, you will constantly hear the phrase “no problems!” and "dont worry, euryfink will be good!" (Do not worry, it will be good!). You can relax, because you really will not achieve anything with pressure and demands in India. Only endless patience and total positive!

After registering a company, you will be in the field of constant attention of the police and inspection authorities. From now on you will have to pay bribes to large quantities and on regular basis. With such an item of expenditure, any business becomes simply unprofitable.

There is another way - to act without registration. It is usually followed by citizens from the countries of the former Soviet Union. We are not talking about large restaurants here, it is impossible to hide the goose that lays the "golden eggs". The police will definitely come to her for baksheesh. And not from one area, but from different ones. And everyone will demand their share!

We are talking about small restaurants, mainly in Arambol. For example, there was a well-known restaurant there for several years, the owners of which I am well acquainted with. We talked for hours with them about business.

Officially, the Russian owners did nothing, but were simply visitors to the restaurant. All responsibility and cover from the police was on the local owner of the beach area on which the restaurant is built. In fact, it was the Russians who did all the business.

For two seasons, things seemed to be going well for the Russian owners of the restaurant. And then they fled not only from Goa, but from India in general. I wondered why they abandoned their well-established business in crowded Arambol with convenient place by the beach and well-known brand.

The owners explained their decision to me by the impossibility of working with the Indians.

We are wildly tired of working with Indians! my friends said. They are lazy as hell! You have to constantly stand and control them, otherwise they do nothing. And at every opportunity they try to rob! No more nerves to do business with them. We will now come to India only as tourists!

And they left. Since then, I have not met them in Goa even as tourists.

An Arambol resident, the owner of a piece of land near the beach, which was rented out as a restaurant, raised the rent for the next season from 2 to 10 thousand dollars per season. He did not find fools for this crazy money for Arambol and began to do business himself.

A similar fate befell the Dane who opened the Checkey Monkey restaurant in Arambol. The Dane sincerely believed that he could create a decent level restaurant in a poor village, where hippies and Israelis traditionally come, saving every cent.

The Dane was shocked by the dirt in the kitchens of Arambol restaurants. First of all, he created a kitchen that is open to the eyes of visitors, so that everyone can see the clean cooking process. The Dane filled the restaurant with delicious, unusual dishes for Arambol. He spent a lot of effort, money and talent to create a pretty and cozy atmosphere in a restaurant. It took him even more strength to teach the lazy Indian waiters to be quick.

The Dane invested a lot of money in his project, hoping to seriously and permanently settle in the Goan business. He was set up like a northern Viking: seriously and resolutely go to the bitter end ... It all ended with the fact that at the end of the first season the Dane quarreled with all the Indians, sent to their vigorous grandmother, abandoned everything and fled back to Denmark. He was never seen again in Goa.

By the way, special mention should be made of the thievery of Indian workers. My acquaintance, a wonderful Russian man Vasily from St. Petersburg, wanted the same thing that many other Russians want: to create small business in Goa, which would pay for the expenses of his living. In St. Petersburg, Vasya has a companion and profitable business, so that Vasya could not worry about food. Vasya is a tall and powerful athlete, an educated, intelligent, non-drinking, non-smoking and full of energy man in his prime!

Vasya found a great place right next to Mandrema Beach, in the golden highlight of Goa. He rented a plot and invited the Indians to build a bamboo guest house, which is typical for Goa. The foreman ripped off Vasya, who was new to Indian rates, for a triple price. Vasya unknowingly paid. The Indians built bamboo houses for him in such a way that they began to fall apart on the second day, and dogs from the neighboring beach could enter the gaps formed. Later, Vasya had to rebuild the bungalow four more times, including himself.

With such expenses, the business could not pay off, of course. By the end of the season, Vasya could only count his losses. Vasya realized that if he just rented a bungalow by the beach overlooking the ocean, his expenses for the entire season would be several times less than the losses that his business in Goa brought him.

At the end of the season, Vasya was in for a surprise knockout. His closest assistant, manager and friend, an Indian from Calcutta, with whom they worked side by side throughout the season, sneaked into his home at night and escaped with all of Vasya's cash (about 5 thousand dollars), all the equipment and equipment, including a projector for showing movies, laptop, expensive phone, iPhone and more. The Indian from Calcutta was never found.

On the next year the Goan, from whom Vasya rented a site in Mandrem, raised the price of the lease so that Vasya would have to work hard all season to pay this price. This is a common practice for land owners in Goa. Seeing that a foreigner has built a bungalow or a hotel for them, they immediately raise the price of rent several times over so that any business loses its meaning.

After that, Vasya's hopes for doing business in Goa finally vanished. I still see the place he created by Mandrem Beach every day. But I never saw Vasya in Goa again.

By the way, if you think that Goa lacks restaurants, hotels or guest houses, then you are deeply mistaken: there are plenty of them here, even more than you need! There is fierce competition between them. Any niche that appears is immediately filled. After all, this is Goa for Russians - distant, happy planet. And for the Indians, Goa is a field for making money from tourists. Businessmen from all over India flock here. First of all, competitive fight Goa goes precisely between the Indians.

It is simply impossible to compete with Indians in prices, since Indians, in principle, are content with much smaller profits than foreigners, for example, they can successfully live on $100 a month. In addition, local Goan owners do not have to pay for their plots. rent, which also allows them to offer services and services cheaper than foreign tenants.

It remains for you to fight for survival only by quality or by offering a new, original product. But tourists in Goa do not want to pay for the quality, because they come here precisely for cheap hotels and Goan food, which they can get in Indian restaurants. In addition, to create something expensive and of high quality, large investments are required. And foreign investment in India is completely unprotected!

And what kind of business can we talk about if you cannot be an owner in India?

Indian law is designed in such a way that a foreigner can never, under any circumstances, become the owner of housing or land. You can buy real estate only on the balance sheet of a company that needs to be opened in Goa. In principle, this can be done. But you will have to keep the company that you opened afloat forever, paying all taxes. If there is no company, then the property that it owns will not, it will be expropriated by the Indian state.

In addition, Indian and Goan legislation is monstrously unstable. In the last ten years alone, the Goa authorities have reviewed the procedure for buying and owning property three times. Many foreigners, including Russian citizens, have lost their property without any compensation for the lost investment.

The real reason was only in the redistribution of property. Indians - the former owners of land and houses decided to earn extra money and present the new owners with an extra account. Often there are cases when, after the deal, several more owners pop up near the land, each of which has documents on the ownership of this plot and demands to pay him money. Sometimes different owners of the same plot successfully sell it different people, who then litigate for years and unsuccessfully try to defend their rights.

At the same time, a foreigner is always a stranger to the locals, so he is absolutely defenseless against any lawlessness that the authorities or the police throw with him.

These are the disappointing arguments and facts about doing business in Goa.

If you want to know my opinion, then I think that property and business should be in those countries in which your money will be protected: in Europe, in America or, for example, in Moscow. And in Goa?.. Better come to Goa to relax and enjoy Paradise on the income from those capitals that work for you in rich and civilized countries!

Of course, you can object: what about you, isn’t your business successful?! Yes, thank God, successful! But in order for it to become successful, I had to go through very serious trials.

I had to try everything possible options for business, two years of living in a constant lack of money, asking financial assistance with all friends and relatives in distant Russia, to transfer the most severe diseases to new country, sometimes not having 20 cents in your pocket for a bun for tea, wandering around distant, foreign lands, for almost three years without having the financial opportunity to return home and see relatives and friends, live for two months with ten Indians in a cramped two-room apartment in a poor and wretched quarter of Delhi, go through all the circles of hell of the Indian bureaucracy, become related to India in the literal sense (my wife is an Indian), grow roots in the Goan land, finding a second homeland in it, gain respect and become your own for the local residents of Ashvem and Mandrem, know betrayal best Indian friend, then understand him, forgive him and accept him again...