What to Expect When Doing Business in India VS The British Virgin Islands
The countries of India and the British Virgin Islands are both beautiful and exemplary in their rights. Although they are distinct when it comes to culture, people and traditions, these progressive countries are making waves with economic progress and business infrastructure.
In light of business style and critical advantages, this article will let you understand more of the similarities and differences of doing business in India Vs. The British Virgin Islands.
Geographical Location
India
The 29 states of India vary in living conditions and market situations. Although urban clusters vary from one state to another, India has scattered high-performing states that continue to contribute to India’s GDP increase. Plus, with the government’s approach for building infrastructure, it is only a matter of time when the working population moves from rural places to urbanized cities offering an invaluable workforce.
The British Virgin Islands
Ideal for entrepreneurs wanting to penetrate the markets of Central, South and North America, the British Virgin Islands is great for setting up businesses of offshore processes. What’s more, the British Virgin Islands is sandwiched between the Caribbean Sea and Northern Atlantic Oceans.
Regulatory Framework
India
Foreign start-ups find India a haven because of its open market. Although you have to register and incorporate your business, the processes are relatively more manageable than in other countries. The Indian government welcomes foreign investments through the ease of incorporation and registration processes. In the latest Ease of Doing Business ranking, India jumped from its initial 100th position to the 77th position. Such improvement will boost the confidence of foreign countries to expand on India.
The British Virgin Islands
One attractive factor of establishing your business in the British Virgin Islands is its quick incorporation and business registration process. Be prepared to have your chosen company name, list of directors and shareholders, share capital, and registered agent and office when you list your registration business.
Applicable Tax Regimes
India
Tax rates of foreign companies in India are attractive to a foreign investors’ perspective. What’s more, India does better for VAT applications and refunds against exports. But, there are instances when refunds are prohibited, such as garments. India also allows refunds on goods and services upon export. Also, India boasts its attractive tax incentives. Who knows, this can even go up to 100% in no time.
The British Virgin Islands
For offshore purposes, setting up a business in the British Virgin Islands is an excellent option for foreign companies. A business isn’t required to pay corporation taxes. But, there are stamp duties and the need to submit tax returns.
Political Stability
India
The government encourages foreign investments as part of its economic goals and country building approach. In addition, the government continuously passes laws that encourage businesses to start-up in the country. The inflation rate is also set to go lower because of the government’s many strategies.
The British Virgin Islands
On the other hand, the British Virgin Islands also boasts its impressive stable and peaceful government that provides a sense of security to businesses that opt to establish a business in that country.
Human Workforce
India
One of the most essential business resources you can have is the human workforce. Without it, you can’t move your business forward. Indian workforce is among the greatest assets in the world. Aside from the amazing pool of skills and talent, Indian workers are fluent in English. This makes them optimal for worldwide operations. At the same time, Indian manpower is known to capitalize on IT industries and technological applications. Last but not the least, it is inexpensive to invest in Indian human resources.
The British Virgin Islands
Unfortunately, this country isn’t much known for its global workers, unlike India. Although the economy is wide open for foreign incorporations, there is limited information as to how the constituents of the country aid in global operations.
Conclusion
These two countries are both great options for foreign companies looking to establish businesses. However, if you look closely, your organization will still gain a lot of advantages from considering to build in India.
First, India is a country with a compelling workforce and human resources that will help you propel your business. They are English-proficient, cost-effective and equipped with skills and knowledge especially in the technological aspect of work. Second, the technological infrastructure in India is growing at an astounding rate. This makes them one of the most high-demand workforces that fill the gap of IT roles from the world. Last but not least, India is building an excellent economy that is built to last. Legislation continues to pave the way for successful foreign ventures that guarantee sustainability.
If you need any help with India’s company setup, you can always rely on 3E Accounting India for professional and high-quality services.
