Why Set Up Subsidiary / Captive Unit in India

Access to a Large and Growing Consumer Market: India has a population of over 1.3 billion people, offering a huge potential consumer base for companies. By establishing a subsidiary in India, businesses can tap into this large market and gain access to new customers.

Lower Labor and Operating Costs: India is known for its lower labor costs compared to many developed countries. By setting up a subsidiary in India, companies can take advantage of these lower labor costs, leading to reduced operating expenses and increased profitability.

Skilled Workforce: India has a large pool of skilled professionals in various sectors, including information technology, engineering, healthcare, and finance. By establishing a subsidiary in India, companies can access this skilled workforce, helping them to enhance their capabilities and competitiveness.

Favorable Government Policies: The Indian government has implemented various policies and initiatives to encourage foreign investment and promote ease of doing business. These favorable government policies, such as the "Make in India" initiative, provide incentives and support for companies establishing subsidiaries in India.

Access to Resources and Technologies: India is rich in natural resources and has a growing focus on innovation and technology development. By setting up a subsidiary in India, companies can gain access to these resources and technologies, allowing them to enhance their product offerings and stay competitive in the market.

Strategic Location for Global Expansion: With its geographic location, India serves as a strategic hub for companies looking to expand their operations globally. By establishing a subsidiary in India, companies can leverage India's well-connected transportation and logistics network to reach other markets in Asia and beyond.

Tax Benefits and Incentives: The Indian government offers various tax benefits and incentives for companies establishing subsidiaries, particularly in sectors such as manufacturing, research and development, and exports. These incentives can help companies reduce their tax liability and improve their financial performance.

Strong Intellectual Property Protection: India has made significant improvements in its intellectual property protection regime in recent years. By establishing a subsidiary in India, companies can benefit from stronger IP protection, safeguarding their inventions, trademarks, and copyrights.

Collaboration and Partnership Opportunities: India has a vibrant and dynamic business ecosystem, with numerous opportunities for collaboration and partnerships. By establishing a subsidiary in India, companies can forge strategic alliances with local businesses, access new markets, and benefit from shared resources and expertise.

Overall, establishing a subsidiary in India offers numerous benefits, ranging from cost savings and access to a large consumer market to skilled talent and government support. These advantages make India an attractive destination for companies looking to expand their operations, increase their profitability, and gain a competitive edge in the global market.