Government bonuses for NRIs starting business in India
Are you an NRI living abroad and you want to settle in India by starting a new business?Then go ahead without any hassle as the Indian government welcomes people like you with exciting incentives and bonuses in both hands.
So what are you waiting for? After all you have attained so many benefits from the country and it is time for you to return some of those to your mother soil as it will help to create more employment opportunities for the local people thereby improve the economy of the country as well.
Foreign Investment Promotion Board (FIPB)
To start a business in India is not a single day job and it needs lot of planning,documents,money etc. First you should clearly decide the type of business you are going to start in India . It may be a new software company,manufacturing unit of any product or a sub franchise of a existing product or service.The paper work or documents needed for each of these differs from the other .For example if you are planning to set up a manufacturing unit then you need to do the following.
– Acquire the land
– Registration of the land
– Construction plan and its approval
– Water connection
– Electricity connection
– No pollution clearance from the Ministry of Environment.
If you have to go to several departments for getting all of these, time an money will be wasted. To avoid this,the government created the Foreign Investment Promotion Board(FIPB). This operates in a single window system so that you can get approval of all the documents in one place.You can check the Ministry of commerce and industry website for further information
Support from State Governments for Startup businesses
Not only the central government, the state government in India also encourages the NRIs to start business in India. If a factory or manufacturing unit is set up in a state, it creates more employment opportunities for the local people. So many state governments offer attractive incentives like the ones below:
– Land for the factory is given at a reduced rate.Some states even give the land free of cost depending on the nature of the unit.
– Discounts in charges for the Electrical consumption for a year or so.
– Either complete exemption from Sales tax or a reduced percentage for few years.
Industries in backward areas
A area is backward if it has poor infrastructure, roads, water, electricity etc. The living standards of the people there are very low. Do you want the situation to be improved?Then the best way is start the industry you have planned in the backward area.Not only you are improving the area but also you will get plenty of benefits in return. As the area is backward, you may not have good transportation facilities.The government is ready to share more than 50% of the transportation expenses as it will give more employment opportunities for the backward people there by improving their living standards. You will also get the initial investment for buying the machinery and equipment from the government.
Loans for starting new business in India
The government also provides loans for starting your business. The two banks involved in this process are IDBI ( Industrial Development Bank of India) and IFCI (Industrial Financial Corporation of India) . You should submit the detailed description of your project , skill set of the people involved, environmental issues related to your project etc. If they are convinced about your project, they would like to visit the site chosen for the project and make sure that there is no violation involved. If your project passes all the steps,then you are eligible for a loan of up to 75% of the project cost.
Commercial property loans
If you don’t wish to start a new business but buy the existing one,then you can approach the banks in India as they grant loans to NRIs for buying commercial property against your term deposits or any immovable property. You can get up to 60% of the property value as loan. The tenure of the loan varies with the banks and it can be as long as 15 years.Almost all leading Indian banks like ICICI, HDFC, SBI etc provide this facility.
Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC’s to startups, I have a lot to share with you. My aim is to help people, by sharing everything I’ve learned in life, through this blog. It’s read today by more than 150K people world over! I currently live in LA, California and visit India occasionally. Here’s my full story on who I am and why I blog. Connect with me on FB, Instagram, Twitter or WhatsApp (+001-408-489-4785). Happy to help! 🙂