India VS Germany: Which Is the Best Destination to Set Up Your Business?

Doing Business in India VS Germany There’s not much to differentiate the corporate system of Germany and India. Yet, both have some significant distinctions that should be understood and kept track of beforehand.

As a business owner, it’s essential to study which country is better, India VS Germany. Besides, you also need to be certain that you are thoroughly prepared to transition into India or Germany’s business environments.

Thus, study the points below as your first phase in setting up your business in India or Germany.


Business Structure

If your goal is to compare India VS Germany in doing business, the first thing to consider is the business structure common in the country. Indian companies are often quite bureaucratic. Assignments are assigned down the hierarchy. There are few options for lower-ranking workers to relay suggestions or critiques up the ranks.

On the flip side, having a flat business structure is often more common in Germany. Such structure is common, especially in startups that respect artistic integrity.



In a broader culture, another distinction between India VS Germany is their attitude of being straightforward. Indian firms prefer to highlight the positive. It further contributes to an atmosphere that is respectful and friendly. However, it can also lead to excessive politeness and an inability to express things the way they are.

The atmosphere of the German industry is blunter, which may be disrespectful or even aggressive. Seniority is less emphasized. It’s not surprising to see able workers rising higher across the ranks instead of long-standing ones.

For bosses that are more accustomed to Indian-style culture, it can be disarming. There is a strong compromise to reach where workers are valued for their influence but are still open to input from their staff.



Aside from structures and business behaviours, business people should also look at business practices. One example is haggling. In India, arranging agreements at length is a normal part of corporate life. Haggling everything from materials to alliances to business facilities is common. Yet haggling could be disrespectful and off-putting in Germany. This is due to the blunt and transparent nature of the German industry.



Another notable comparison between India VS Germany is pragmatism. In India, it is logical to consider and thoroughly evaluate a business deal for a prolonged period. Although Germans aren’t as worried about these waits, delays may cause dismay.

Hardly anyone minds a brief wait for analysis and contrast purposes, but standing off is often seen as a question of a business’ reliability. Any negotiations are in danger of being seriously compromised by waiting too long and examining too often.



It’s also good to note the timeliness of the workers in a country. In a heavily populated country such as India, punctuality is a privilege rather than a need. The complicated and overstretched bureaucratic system suggests that it takes an extended period to file documents. But it’s good to note that the Indian system has its advantages when it comes to business. It’s much faster and cheaper to register a company and pay tax payments in most of India.

On the other hand, the issues of timeliness are marginal in Germany. Great time-adherence is a demonstration of discipline and appreciation.


Business Etiquette

Business etiquette is another factor to consider in comparing India VS Germany. Though the exact formalities vary from country to country, they usually have less etiquette in Germany than in India. Instead of titles or honorifics, pleasantries include forenames. Also, a rigid formal dress code does not exist with any meeting. But, shaking hands is the practice for both male and female business partners.

Veganism is also less prevalent in Germany than in India on the accommodation side as it is linked to lifestyle rather than beliefs.


Perks For Employee

Finally, business owners should look at how each country treats its workers. Germany implemented several policies to protect and raise the standard of living of workers. The effect is increasing costs for organizations. But these incentives may still increase morale and are highly appreciated by workers.

While in India, employees who work past their work time will acquire extra pay. There’s also a widespread assumption, especially among millennials, of flexible working arrangements.


Final Thoughts

India is the best choice for both startups and expanding companies who want to grow in Asia. With business-friendly policies and institutional tax benefits, it’s easier and cost-effective to start up a business. Overall, the opportunities to grow and develop in India give greater accessibility to Asia and international markets.

What to do next? Contact 3E Accounting India and ask our experts how you can start setting up a business in India.

Doing Business in India VS Germany