Article Archives - Page 20 of 48

Article, U.A.E

How to Renew Business License in Dubai in Three Easy Steps?

July 23, 2019

Thinking of getting your business license renewed? It isn’t so tough now. Business licenses are renewed annually in Dubai, which can be now done in three simple steps. This is because of the new measures taken by DED or Dubai Department of Economic Development.

DED has come out with various initiatives such as registered agents and smart electronic services who help you with renewal. You can also just send an SMS and get renewal of your business license. With online renewal process, delays are also reduced and one ends up saving time and effort.

The three easy steps with which you can renew your business license are:

Check the tenancy contract’s validity: Your tenancy contract should be valid for a minimum of one month; and it’s better if it’s longer. Place of business is also of significance; hence, check the validity of your firm’s tenancy contract so as to avoid delays in getting the renewal.

Approvals needed for all business activities: Each particular business activity has selective requirements and could ask for certifications or licenses from specific authorities. For example, a car rental business or a private car service requires an approval from the Dubai Road and Transport Authority or RTA; however, a private medical clinic requires a certification from the Ministry of Health and Prevention from Dubai. So you need to get requisite approval from the business activity from the required judicial or government department before applying for the renewal of the business license.

Finally apply for renewal of your business license: Gather all the certifications and the duly-filled application for trade license renewal in Dubai. You can then submit your application to DED in various ways:

Offline Renewal: DED can renew your business license by offline modes like business service provider, law firms, authorised service agents, happiness lounge, etc.

Online Renewal: DED’s website and e-Services especially for the business customers on which they can do the renewal online. Getting the renewal done online saves time and effort and requires minimal paperwork.

Auto-renewal method: The Economic Department has started an auto-renewal process by which the renewal can be fast-tracked. The investors who want to renew their license only require to send an SMS along with their license number to 6969. The renewal cost is sent via SMS and the fee can be paid both offline and online.

The challenges in the process

If there is a delay or non-renewal of business license in Dubai, the company could have to pay a penalty and can also be blacklisted. The company’s plans to set up their business in the region in future could also be ruined. Therefore, many entrepreneurs feel that appointing an expert service provide in UAE is an easier and safer option.

If your documents are not in proper order, then the renewal of business license can take more time. You should be confident about your tenancy contract’s validity and have all your certifications in place. As running around various government agencies can be gruelling, many business owners find it easier to outsource this task.

So if you need assistance in getting your business license renewed or are looking for business setup consultants in Dubai or business setup in Dubai free zone, then get in touch with us. We can also help you with hassle-free process during company formation in Dubai.

Article, U.A.E

Dubai Expo 2020

July 22, 2019

Article, Saudi Arabia

Looking to Expand Your Hotel Business in Saudi Arabia? Read This!

July 16, 2019

The hospitality sector is ever evolving. Hotel industry being a part of it, is seeing a continuous and rapid transformation to lure the customers. In fact, for luxury hotels it is very important to keep a pace with the changes if they want to stay ahead in the market.

The hotel business in Saudi Arabia has a huge potential and it offers numerous opportunities to foreign companies looking to expand their business in the Kingdom. So taking advantage of doing business in Saudi Arabia, expanding your hotel business in the Kingdom is the right thing to do.

Why Saudi Arabia?

Saudi Arabia is one of the friendliest countries in the world. The regulatory environment is favourable for doing business and the country holds a high position in the World Bank Group ranking. Moreover, Saudi Arabia is one of the favourite destinations for investors to put their money. In addition, it is one of the fastest growing economies of the world and most sociable place on the planet.
The hotel industry in Saudi Arabia is expanding at a rapid pace. The demand for hotels is increasing for business as well as religious travellers. In fact, the country is garnering interest from many international hotel groups leading to construction of new hotels across the Kingdom. The hotel industry expansion in the country can be seen from the fact that approximately 6,500 guestrooms are currently in the development stage. This ensures that the investment in the hotel industry will continue in the years to come.
Hajj and Umrah pilgrims make Saudi Arabia a lucrative place for entrepreneurs to set their hotels. Makkah, the holy city has the largest number of new hotels and accommodates millions of travellers every year.

After reading the benefits of expanding your hotel business in Saudi Arabia, if you have decided to enter the new market, the first question that you might be having is how to register a company in Saudi Arabia. To assist you in this regard, IMC Group is always at your service. We guide you during the entire process of registration and setting up a hotel in the country.

Here is how to go about setting up a business in Saudi Arabia:

Get SAGIA Entrepreneurial License

The first step is to obtain the Saudi Arabian General Investment Authority (SAGIA) Entrepreneurial License. This license provides many incentive benefits to new companies. In addition, with this license, the new companies can leverage the services of the small and medium-sized business. Based on vision 2030, SAGIA aims to attract investors and entrepreneurs from across the globe to set up their own projects and businesses. Without SAGIA license, you would not be able to do business, set up a bank account and sponsor shareholders. IMC Group helps you in getting the license in the shortest time period.

Incorporation Process

The next step is to complete all the incorporation formalities. The process includes signing the Article of Association and notarizing the documents. After 30 days of recording the Articles of Association, apply for the registration in the Commercial Register. The Ministry of Commerce and Investment issues the commercial registration. IMC Group assists foreign investors to complete their incorporation process. In addition, IMC Group applies for other licenses required by your business for various activities. To further ease your task, we take complete care of the renewal of your investment licenses.

Office Setup

The last step is to set up your office in the country. With just 500,000 SAR, you can set up a branch office in the Kingdom of Saudi Arabia. IMC Group assists you in setting up the branch office in Saudi Arabia. With the help of our local expertise and knowledge about the country, you can offer unique services to your international and domestic travellers through the office.

The hotel industry of the Kingdom is growing rapidly and you must join the race to take advantage. You can enter the hotel industry in Saudi Arabia through a partnership with the local player. This will not only ease the process of hotel set up but also help you in giving better services to your customers. IMC Group is at your service to develop the local partnerships. Saudi Arabia is a country with strong values, customs and religious belief. IMC Group understands this fact very well. By establishing your business through us, you can be assured that your hotel business will follow the cultural adherence and a vision that will put you ahead of your competitors.

Article, U.A.E

The UAE outlines industry sectors entitled for up to 100 percent foreign ownership

July 5, 2019

The recent announcement by the UAE Cabinet on Tuesday was welcomed by both firms and residents, when they listed the business activities which will be eligible for up to 100 percent foreign ownership as per a law approved last November, as the nation seeks to bring in more investment from overseas and thus create jobs for its people.

The listing of 122 economic activities in 13 sectors ranges in renewable energy, agriculture, space, manufacturing, information and communications, logistics, transport, hospitality, food services, and many others.

“Our goal is to open and expand economic sectors, attract new investors and cement the global competitiveness of our national economy,” said Sheikh Mohammed bin Rashid, the Prime Minister of the UAE and Ruler of Dubai, on Twitter on Tuesday.

“Local governments [across the seven emirates of the UAE] will determine the percentage of ownership in each activity according to their circumstances,” he tweeted. In some emirates, some of these activities could also require to have an Emirati shareholder, even though the foreign ownership limit increases.

Earlier, foreign investors were permitted to hold up to 49 percent of a business or firm that is registered in the UAE, except if it was situated in a designated free trade zone, and they had to have a partner or an Emirati investor who usually held the remaining 51 percent.

Similar to other GCC nations, which conventionally depended upon hydrocarbons to empower their economies, the UAE has executed reforms to fortify and diversify during a phase of lower oil prices. Various reforms such as reducing business registration fees to augment the non-oil private sector and announcing a 5 percent VAT in the month of January last year, as per a GCC-wide agreement.

The Emirates has recently also begun issuing long-term residency visas to some expats to persuade them to reside longer and also invest in the country. Special permanent visas known as “gold card” were granted to expats who contributed significantly in to the UAE economy.

The IMF or the International Monetary Fund forecasted in April that the state’s gross domestic product growth to increase to 2.8 percent in 2019, which is up from 1.7 percent in the year 2018. The amplified construction activity due to Expo 2020 in Dubai is expected to spike up growth.

Relaxing these foreign ownership rules “is a further measure to liberalise and strengthen the investment environment and will be a critical step in the development of new sectors and industries”, said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “A key objective will likely be areas linked to technologies and ones that will support job creation.”

Including logistics and storage activities in the listing would “allow investors to own projects in e-commerce transport, supply chain, logistics and cold storage for pharmaceutical products”.

Professional, technical and scientific activities also get the eligibility – “which enables ownership of laboratories for research and development in biotechnology”.

The listing also has administrative services, educational activities, support services, healthcare, construction, and arts and entertainment.

When the law was issued in November in the UAE’s Official Gazette, the UAE government published a list of a dozen sectors which were still not eligible to qualify for 100 percent foreign ownership. Some examples for these are banking, oil and gas, utilities, telecoms, road and air transport, and medical retail (including pharmacies).

The UAE still keeps going up in the World Bank’s ‘Ease of Doing Business’ ranking and figures at number 11 position among a total of 190 economies. Now, this decision will reinforce the UAE’s position as a hub for company formation in Dubai and in the investment community.

If you are thinking of setting up your business in Dubai or Emirates and are stuck on some procedures, do get in touch with us for assistance on best company formation in UAE

Article, U.A.E

Why UAE is Great Destination for the Choice for Entrepreneurs

July 3, 2019

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Article, U.A.E

UAE Announces the ‘Golden Card’ – Permanent Residency System for Expats

June 26, 2019

The UAE has recently unveiled a permanent residency arrangement for expatriates, which is termed as the ‘Golden Card, announced the Kingdom’s Vice President, Prime Minister and Ruler.

As per this step, permanent residency would be granted to all “exceptional” professionals. Almost 6,800 people would get advantage from the scheme in its first round of applications.

He said that this new “Golden Card” system was launched to offer permanent residency to the investors, exceptional professionals like engineers, doctors, scientists and artists.

The Federal Authority for Identity and Citizenship (ICA) will manage and monitor this scheme and come up with more details very shortly, said the UAE Government Communication Office.

This arrangement is also expected to have a positive effect on the local property market as most expats come to Dubai with a money-making mindset and a short-term goal and objective before going back to their home country.

This decision taken by UAE Cabinet to implement a Gold Card for permanent residency would now also allow expats to consider Dubai as a home instead of a short-term temporary plan.

The Gold Card is set to further stabilise the UAE’s economy by inspiring more experienced and distinguished professionals for coming into the country. This clearly means that the property market would also benefit in a big way from this step in consolidating the economy.

This announcement follows last year’s announcement that UAE would offer five or 10-year residency visas for all entrepreneurs, investors, professionals in the medical, research, scientific, and technical fields, and also to the ‘outstanding’ students for encouraging business and developing an attractive investment setting in the country.

The country has already begun offering the longer-term visas to entrepreneurs, investors and scientists.

This move by UAE comes right after Saudi Arabia executed a ‘green card’-style residency arrangement for expats.

The key goal of this special residency system is attracting prosperous and highly-skilled and professional expats and plans to give Dubai residence visa to the special iqama (permit) holders without the requirement of having a Saudi sponsor.

According to the law, any holder of such an iqama would be having a family status, is allowed to recruit workers, buy, own and lease any property or even mode of transport in the country, can get visit visas for their relatives, is allowed to freely enter or exit the Kingdom and also enjoy using designated queues at various airports.

The fee for this particular permit is SAR800,000 ($213,333). A temporary one-year iqama comes at SAR100,000 ($26,666) for the expats. So if you are looking for pro services in Dubai and assistance in Dubai residence visa, do get in touch with us and we would be happy to help.

Article, Saudi Arabia

Step by Step Guide on Foreign Company Registration in Saudi Arabia

June 20, 2019

Saudi Arabia has emerged as one of the ideal destinations for business and entrepreneurship from across the globe. Thanks to the active government measures and many associated benefits such as the lowest average tariff rate in the Middle East, simplified procedures for company formation in Saudi Arabia, liberal political environment, 100% foreign ownership, lower tax rate and numerous other incentives.

Saudi Arabia has taken steps to simplify business setup for foreign companies through SAGIA, which supports approvals, licensing, and visa processing. Ongoing reforms and investor-friendly policies have positioned it as a top business destination in the MENA region. Key sectors drawing interest include real estate, hospitality, and construction. Here’s a look at the basic requirements and registration process for starting a business in the country. To know more about how to open a branch office in Saudi Arabia, you may get in touch with IMC Group.

Basic Requirements for Registering a Company in Saudi Arabia

Investment Share Capital – A minimum of Saudi Arabian Riyal (SAR) 5,00,000 is required to register a new company
Number of Shareholders – As per the law of the country, a company can have at least 2 to a maximum of 50 shareholders.
Auditor – Every private limited company in Saudi Arabia shall appoint an auditor.
Application for Company Incorporation – The company incorporation application has to be submitted with the SAGIA along with all the supporting documents.
Hiring Labour – If a foreign company is willing to hire local employees, it has to first get permission from the Ministry of Labour by submitting the required supporting papers.
Zakat and Income Tax – Every private limited company in Saudi Arabia has to obtain Zakat and income tax certificate or license from the Ministry of Finance.

Taxation for companies in Saudi Arabia

Tax Incentives – If a foreign company is registered in certain economic cities located in the under-developed provinces of KSA, it enjoys various tax incentives.
Tax Free – There is no tax levy on the sales and hiring foreign employees, provided certain conditions are fulfilled.
Corporate Income Tax – Corporate income tax is levied at the rate of 20% to 45%. However, the rate varies from service to service and product to product.

Documents Required for Company Formation in Saudi Arabia

Document	Description
Investment License Application Form	Submitted to the Ministry of Investment (MISA) to request the license for foreign business activities.
Notarized Board Resolution	Lists partners’ names and capital shares, validated through notarization for legal standing.
Audited Financial Statements (Last 3 Years)	Company’s financial records reviewed by a certified accountant, showing past financial performance.
Articles of Association (AOA)	Defines the company’s internal structure, management responsibilities, and operational procedures.
Passport Copies of Shareholders	Clear and valid passport copies for every shareholder involved in the setup.
Proof of Identity and Address for Directors and Shareholders	Verification documents, such as IDs or utility bills, confirming identities and residential addresses.
Approval from Relevant Saudi Ministry	Written consent from the concerned authority based on the company’s sector and business nature.
Attested Power of Attorney	Legal authority assigned to a representative to act for the company, verified through proper attestation.

Business Structures in Saudi Arabia

Structure	Key Features
Limited Liability Company (LLC)	2–50 shareholders; liability limited to share capital; minimum capital SAR 500,000
Foreign Branch Office	Requires approval from MCI; subject to Foreign Investment Law
Commercial Agency	Foreign entities appoint a local Saudi agent; regulated by MCI
Joint Stock Company	Minimum 5 shareholders; liability limited to share capital; capital requirements: SAR 2 million (private), SAR 10 million (public)
Technical & Scientific Office	Provides support services; cannot engage in commercial activities; requires MCI license

Process of Company Incorporation in Saudi Arabia for Foreign Investors

Reserve the Company Name
Submit a name reservation request through the Ministry of Commerce and Industry’s online portal.
Submit the Articles of Association
Prepare and submit the Articles of Association to the Ministry of Commerce and Industry for approval and official stamping.
Notarize the Articles of Association
Visit the Notary Public to notarize the stamped Articles of Association.
Open a Local Bank Account
Set up a corporate bank account with a local Saudi bank to deposit the required initial capital.
Obtain an Investment License from SAGIA
Apply for and secure the investment license through the Saudi Arabian General Investment Authority (SAGIA).
Receive the Certificate of Registration
Upon securing the necessary approvals, obtain the company’s Certificate of Registration.
Register with Required Government Authorities
Complete registrations with other relevant authorities such as:
- General Authority of Zakat and Tax (GAZT)
- General Organization for Social Insurance (GOSI)
- Municipality (for commercial license)
- Chamber of Commerce and Industry

FAQs

1. What types of companies can be registered in Saudi Arabia?

You can register a Limited Liability Company (LLC), a Joint Stock Company, a Branch Office of a Foreign Company, or a Representative Office.

2. Is it necessary for foreign companies to have a Saudi partner?

No, foreign companies can operate with full ownership if they obtain a MISA License.

3. What is the minimum capital required to set up a company in Saudi Arabia?

The minimum capital depends on the business activity. For many LLCs, it starts at SAR 500,000.

4. How long does it take to register a company?

Company registration usually takes around 2 to 3 months, depending on document preparation and approvals.

5. What documents are needed for company registration in Saudi Arabia?

Key documents include the parent company’s incorporation certificate, a board resolution, audited financial statements, and a notarized power of attorney.

6. What tax obligations do companies have in Saudi Arabia?

Companies are subject to corporate income tax, which ranges between 20% and 45%. They must also submit annual tax returns to the Zakat, Tax, and Customs Authority.

7. Are there restrictions on foreign investors in certain sectors?

Yes, industries like oil exploration, real estate brokerage, and certain service activities have restrictions on foreign ownership.

8. Is a physical office address mandatory for registration?

Yes, a valid physical office address in Saudi Arabia is required to complete the registration process.

Article, Bahrain

Starting a small business in Bahrain? Here is all you need to know

June 14, 2019

Bahrain is a small island country located in the Middle East. It shares borders with Qatar, Saudi Arabia, Iran and the Persian Gulf. The Kingdom of Bahrain has the fastest growing economy in the Arab world. The economy of the country is majorly driven by the banking, tourism and oil and gas sector.

In order to further boost its economy, the government of Bahrain is taking measures like allowing foreign investors to have 100% ownership in a wide array of business sectors, liberalization of economic laws, tightening anti-money laundering laws, easing out visa and immigration policies and much more. All of these measures work towards bringing foreign investment into the country and to enhance business development within the nation.

Apart from this, Bahrain provides a rewarding investment environment for investors from all over the world. In fact, as per the 2019 report of the World Bank on ‘doing business in Bahrain’, the country is one of the best places for investment in the region. Moreover, it offers a safe and cosmopolitan business-friendly atmosphere to investors aiming for foreign investments in Bahrain.

Reasons to Invest in Bahrain

Bahrain is an emerging country in the Middle East and investing or doing business in Bahrain has the following advantages:

Bahrain lies in the heart of the GCC which provides the advantage of easy access via air, land and sea from the Middle East and North Africa.
The country boasts of its robust infrastructure and well-equipped amenities
Bahrain holds a 40-year track record as the Gulf’s leading financial centre
The scope of business growth is vast
The legal system in the country is simple and lucid
The corporate policies in Bahrain are business-friendly and liberal
The country favours exports due to its lower customs duty
Bahrain offers advanced banking facilities
The country features a modern global economy
The cost of living in Bahrain is quite low as compared to other neighbouring countries
The local workforce in the county is educated, skilled and efficient
The tourism and entertainment industry in the county are booming year on year
It has one of the highest qualities of life in the Middle East.

Major Considerations to Make Before Starting a Business in Bahrain

If you have decided on doing business in Bahrain, here are a few things that you should consider.

You must have a good knowledge of the region. It is vital to understand the business sectors that you intend to operate in, study the market conditions, competition, etc.
There is a requirement of a local partner who holds the majority interest (share capital) and can, therefore, control the business. It can be a company or an individual.
Post your foreign company registration in Bahrain, you need to convey to the Ministry of Commerce that you have at least the minimum required capital to invest.

Types of Legal Entities That Can Be Incorporated in Bahrain

When thinking of business set up in Bahrain, you may choose from among the following five legal entities:

1.Limited Liability Company

A Limited Liability Company can have a maximum of 50 shareholders (having at least 1 local resident shareholder) and they are liable only to the extent of the share capital they have invested in the company.

2.Branch Office

In order to incorporate a Branch Office, a foreign company has to get approval from the Ministry of Commerce and Agriculture. It has to appoint a local sponsor.

3.Partnership

It has 3 types:

Partnership Limited by Shares

Partnership Limited by Shares comprises of two types of partners namely general partners and limited partners. It is formed by at least 1 general partner and 10 limited partners. The general partners are fully liable for the debts and actions of the company while the liability of limited partners is restricted to the amount of their capital investment.

Limited Partnership

Limited Partnership is formed by at least 1 general partner who is liable for the partnership obligations and 1 limited partner who bears the limited liability and does not participate in the business management.

General Partnership

In the case of General Partnership, all the shareholders are jointly and severally liable for the company’s debts and obligations.

4.Sole Proprietorship

A Sole Proprietorship is owned by a single person who bears unlimited liability for the business.

5.Bahrain Shareholding Company

A Bahrain Shareholding Company is required if the shareholders intend to engage in banking or insurance business. It has 2 types:

Public Shareholding Company

A Public Shareholding Company (also called as a Joint Stock Company) is formed by at least two shareholders who are only liable to the extent of their capital investment. The shares of this company can be subscribed by Bahrain GCC and non-GCC citizens.

Closed Shareholding Company

A Closed Shareholding Company is formed by at least two shareholders. The shares of this company are not offered to the general public for subscription.

Procedure to Follow for Starting a Small Business in Bahrain

1.Select a Legal Structure

The very first step is to carefully choose the legal structure of your business as it has a direct impact on how your business will be managed, how ownership is held, personal liability of the owners, etc.

2.Choose a Company Name

The next step is to select the company name based on the guidelines issued by the Ministry of Industry and Commerce (MOIC). You can propose up to 4 names at a time.

3.Commercial Registration of the Company

On verification of the application form and payment of the necessary fees, you can go for commercial registration of the company. For companies, commercial registration papers are issued at the Bahrain Investment Centre and for individual establishments at the Ministry of Industry and Commerce Commercial Registration Directorate.

4.Licensing and Approval

In case, if you do not get the commercial registration papers right away, you will have to apply for a license or get approval from more than one Governmental authority.

5.Other Requirements

Once your company is registered, you will have to comply with other requirements such as opening a local bank account, leasing an office space, hiring local employees, etc.

In order to ease the process of Bahrain company formation, you may seek help from a professional business advisor who can guide you through the company registration complexities and help you achieve your business goals. IMC Group can help you in this regard and make the entire process of doing business in Bahrain a hassle-free and convenient task.

Article, U.A.E

Is 2020 Going to Enhance the Economic Effect of SME Firms in Dubai

June 11, 2019

SME companies in Dubai or small and mid-size businesses have played a key role in encouraging the private sector and expanded the economic system. But now the question is if the year 2020 would enhance the financial impact of SME businesses located in Dubai and create new business opportunities for SMEs operating in Dubai?

The UAE economy is nurtured by SME firms in Dubai in a big way. As per current data, small and mid-size enterprises represent almost 96 percent of the total number of registered companies in Arab.

Next year, or 2020, is expected to bring a huge transition in the country. Some studies say that in 2020, there will be huge foreign investments by multinationals and many big corporate giants would enter the region. Due to this, the SME firms are anxious that their commercial characteristics would be sidelined. They also think their business opportunities would be restricted.

But UAE has done its ground work. After 2009’s economic downturn, UAE has prepared itself to deal with any global financial crisis such as fluctuations in economy, reduction of oil prices, etc. This is because of segregated business communities, business modules being based on knowledge, and investments in innovation-focused sectors which are majorly controlled by SME firms in Dubai and UAE.

There are over 4 lakh SMEs in Dubai which contribute around 60 percent of the GDP of UAE, and this figure has been rising with each passing year. In only Dubai, there are over 95 percent SME firms which add to the robustness of the economy.

UAE believes that the SME businesses in Dubai and in other parts of the region are its backbone. Thus, with the upcoming commercial plans for 2020, UAE has made it compulsory to integrate the SME firms through several programs. It is planning to adapt an approach where SME firms in Dubai and UAE get more flexibility and get equal opportunities to participate.

According to the latest reports, no advanced payment guarantees, no tender bonds and other similar leverages have been appointed for SME firms who are looking for collaborating on various government platforms. The SME sector is all set to almost 245,000 new jobs in the coming years particularly in tourism, event and hospitality sectors, which are set to grow by Dh143 billion. Besides, even IT start-up firms and consultancies will benefit hugely in 2020.

Do you want to take an approximation of how your company would fare in the year 2020? Or are you thinking if this is the right time for company formation in Dubai? Do get in touch with us and our professionals would guide you for business setup in Dubai free zone.

We at IMC, have the best experts of the industry who can help you with any assistance you require regarding company formation in Dubai or UAE. Just get in touch with us and we would offer you comprehensive solutions for business setup in Dubai free zone.

Article, India

A look in to India’s Top Investment Destinations

June 3, 2019

India is a growing economy which offers unprecedented business opportunities. Indian markets are considered as one of the key markets worldwide and have significant potential offering prospects of high profitability and favourable regulatory regime for investors. In fact, every state in the country has a unique economic profile that offers numerous opportunities to foreign investors looking to set up or expand their business in India.

Every year, the National Council for Applied Economic Research (NCAER) publishes its State Investment Potential Index (N-SIPI) to demonstrate the investment climate of India’s states. The NCAER publishes the report by assessing the competitiveness of Indian states on six key pillars – infrastructure, labour, land, economic climate, political stability and governance, and business perceptions. It is a pioneering effort to provide metrics of economic governance, competitiveness and growth opportunities at the state and regional levels. The aim of this report is to provide the domestic as well as foreign investors an overview of the Indian market.

As per N-SIPI 2018, Delhi is the most attractive state for investors, followed by Tamil Nadu, Gujarat, Haryana and Maharashtra. In this article, we will walk you through the country’s top five investment destinations and their economic features.

Delhi

New Delhi is the national as well as the administrative capital of India. Not only this, but it is also one of the largest cities in the world in terms of population. Delhi has established a new benchmark in attracting FDI (foreign direct investment) equity inflows into the country. The per capita income of Delhi is 2.5 times higher than the national average.

Delhi is the preferred choice of investors owing to reasons like investor-friendly policies of the government, great infrastructure, competent workforce and large consumer market. In fact, Delhi outperforms other states in India in terms of infrastructure and economic environment.

The city is a hub for all types of commercial and business activities. If you are looking for company formation in Delhi, the city offers great investment opportunities in the industrial sectors such as information technology, tourism, manufacturing and real estate.

Tamil Nadu

Tamil Nadu boasts of the second largest economy in terms of GDP among all the states in India. It is also the most urbanized state in India. Being surrounded by sea from three sides (i.e. Bay of Bengal, Indian Ocean and the Arabian Sea), Tamil Nadu is strategically located and serves as an important gateway to Southeast Asia.

Apart from being an educational hub, there are many industries in Tamil Nadu which are majorly engaged in healthcare, IT, automotive, textile and financial services. The favourable industrial climate, competitive manufacturing industries in the region and the largest number of special economic zones serve as a major advantage to the businesses eyeing to set up their base in Tamil Nadu.

Cities like Chennai, Coimbatore, Madurai, Tiruchirappalli, Salem and Tiruppur provide huge advantages of population and larger customer base.

Gujarat

Gujarat is a leading industrial state and boasts of the highest GDP growth among all the states in India. Due to its strategic location, it provides a gateway to the land-locked states in north India. In addition, Gujarat is well situated to provide strategic trade routes to the African continent and the Persian Gulf. Moreover, it is consistently ranked on top in the ‘ease of doing business surveys’.

Gujarat offers great investment opportunities in the industrial sectors such as petrochemicals and allied products, chemical and allied products, port and shipbuilding, conventional and renewable energy, pharmaceuticals, jewellery, gems, diamonds, textiles, food and agribusiness, engineering and automotive manufacturing, etc.

Cities like Ahmedabad, Surat, Vadodara and Rajkot provide huge advantages of population and larger customer base. There are well-renowned industries in Gujarat such as Adani group, Aditya Birla Group, Reliance, Mahindra & Mahindra and Godrej.

Haryana

Haryana is one of India’s largest automobile hubs and a preferred destination for auto majors and auto-component manufacturers. The state has also emerged as a base for the knowledge industry, including Information Technology and biotechnology. It is a top-ranked state in terms of business perceptions and ranks among other top states in the country in ease of doing business.

Haryana contributed around 3.32% to India’s GDP. The state offers a wide range of fiscal and policy incentives to businesses. Its key geographical location and progressive business environment attract local as well as global investors.

Haryana offers great investment opportunities in the industrial sectors such as automotive, IT, textiles, oil refining, agro-based industry, biotechnology and petrochemicals.

Maharashtra

Maharashtra is known as the most industrialized and wealthiest states in India. Mumbai, the capital city of Maharashtra is popularly known as the financial capital of India as it is home to some of the major banks and financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, National Stock Exchange, General Insurance Companies and Life Insurance Companies.

If you are looking for company formation in Mumbai, you can grab the many advantages that the city offers such as its strategic location on the western coast of India; a gateway for imports into western India; conducive business environment; competitive banking, financial, and service industries; and largest entertainment industries in the world.

Maharashtra offers great investment opportunities in the industrial sectors such as automobiles and auto components, petroleum and allied products, chemicals, information technology, telecom, engineering, textiles, electrical and non-electrical machinery, etc.

Cities like Mumbai, Pune, Nagpur, Nasik and Aurangabad provide huge advantages of population and larger customer base.

If you are looking for company formation in India, you can choose any of the above-mentioned destinations. For company formation in India, you may seek help from a professional company like IMC Group.

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The challenges in the process

Why Saudi Arabia?

Basic Requirements for Registering a Company in Saudi Arabia

Taxation for companies in Saudi Arabia

Documents Required for Company Formation in Saudi Arabia

Business Structures in Saudi Arabia

Process of Company Incorporation in Saudi Arabia for Foreign Investors

FAQs

Reasons to Invest in Bahrain

Major Considerations to Make Before Starting a Business in Bahrain

Types of Legal Entities That Can Be Incorporated in Bahrain

Procedure to Follow for Starting a Small Business in Bahrain

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Tamil Nadu

Gujarat

Haryana

Maharashtra

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