The consulting firms play a considerable role in establishing and enhancing the economy of a nation. You can find many offices of top management consulting firms in India operating freely and adding to the growth and development of both the companies as well as nations. India is a hub of top healthcare consulting firms which enhances the national image of the country. This image makes India an ideal spot of investment and hard to be ignored by global companies looking for bigger and better returns. There are mergers and acquisitions consulting firms in India which offers quick market entry strategies and ease out the business expansion process of global companies in India.
How do global companies enter in Indian Market?
According to the Companies Act of 1956, a global company can set up its business operations in India only by two methods, i.e.
• Merger or Joint Venture
• Acquisition of an Indian company or Wholly Owned Subsidiaries
Under the Foreign Direct Investment (FDI) policy, Global companies can invest up to 100 percent equity into the Indian companies comprehending the needs of the investor, concerning the equity caps of that particular sector.
Joint venture with an Indian Company
Opting for a merger with an Indian company is a suitable idea of entering into Indian markets. Foreign investor gains many benefits from a joint venture such as:
• Easy availability of financial resource due to its partner firm
• Already established marketing and distribution center
• Available contacts of Partner Company simplifying operation set up
Acquisition or Wholly Owned Subsidiaries
Opting for an acquisition of an Indian subsidiary is another suitable option by making 100 percent foreign direct investments using the FDI policy of Indian Government. Global Companies need to register their company by applying with Registrar of Companies (ROC). The company registration can be completed only after RBI and Government intervention.
How do foreign companies set up their operations in India?
With the help of mergers and acquisitions consulting firms in India, Foreign companies can set up a Liaison Office/Representative Office, Branch Office and a project office in India. They are not allowed to set up any manufacturing unit. These offices are allowed to carry out only activities permitted by the Government of India.
How do consulting firms help global companies?
The management and the healthcare sector are the two most important industries in India which have a promising future for global companies. Therefore, foreign companies seek help from Merger and acquisitions consulting firms in India to help them out for the right company for joint venture and acquisition along with other services mentioned below.
• In the management sectors, Global companies switch to top management consulting firms in India. These companies lay great emphasis on robust data analysis and chalk out suitable client friendly strategies leading to quick growth and development. They help in forming new client relationship maintaining a positive company image, locating and attracting the right kind of talent, and improvise the business processes.
• In the healthcare and pharmaceutical sector, Global companies seek help from top healthcare consulting firms to perform in-depth market research before making investments into Indian companies. These companies help in enhancing the efficiency of the available healthcare facility, creating awareness among the healthcare providers and users and introducing the new medical equipment or technology.
References:
https://dipp.gov.in/investors/Investor%20Guidance/entry-strategies-foreign-investors
https://dipp.gov.in/for-investors/investor-guidance
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