Corporate Professionals eBizwire June 2012

7/30/2019 Corporate Professionals eBizwire June 2012

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F o r m o r e i n f o o n B u s i n e s s s e t u p v i s i t w w w . s t a r t b i z i n d i a . i n

P a g e |1 For Business setup queries email [email protected] or call at 011 4062223

Insight

Biz India News 2

Biz Policy Updates 3

Online Retailing on high in India 4 - 7

Business Idea of the Month 7

StartBizIndia Discussion Platform 8

Upcoming Business Summit 9

Contact us 10

eBizWireVol . I Issue. V, June 2012

Industry of the Month

Online Retailing in

India
http://www.startbizindia.in/http://www.startbizindia.in/http://www.startbizindia.in/mailto:[email protected]:[email protected]:[email protected]://www.startbizindia.in/


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Biz India News

Twenty five foreign direct investment (FDI) proposals worth Rs 2,973.40 crore

(US$ 530.46 million), including that of AIF III Mauritius to bring in FDI worth Rs

1,000 crore (US$ 178.38 million), have been approved by the Government of India

on 30th May, 2012.

On 29th

May, 2012, Ranbaxy Laboratories Ltd has got approval from the US Food

and Drug Administration (USFDA) to launch Absorica, an acne treatment drug in

the US market. "Absorica is a milestone in our commitment to serve the

dermatology community and will be the flagship brand for Ranbaxy's specialised

dermatology sales force.

The Government of India is promoting a pharmaceutical cluster with an

investment of Rs 66.16 crore (US$ 11.98 million) at the Petroleum, Chemicals,

Petrochemical Investment Region (PCPIR) in coastal Andhra Pradesh (AP) on

28th

May, 2012. The State ranks first in manufacturing of bulk drugs and hence the

push further, according to Mr M Gopinath, Regional Joint Director General ofForeign Trade.

International cash and carry chains in the retail sector plans to expand in India.

Walmart, the US$ 446 billion American retail giant, which operates cash and carry

outlets in India in a 50-50 per cent joint venture (JV) with the Bharti Group,

expects to open 12 to 15 wholesale outlets in 2012.

Japan External Trade Organization (JETRO), an arm of the Ministry of Economy,

Trade and Commerce, wants to be a partner country while promoting India's

manufacturing policy, which aims at creating 100 million jobs and enhancing the

country's share in the gross domestic product (GDP) to 25 per cent in 10 years.

The Government of UK has expressed keen interest to invest in some big projects

in the information technology (IT), healthcare, infrastructure and education sectors

in Kerala, according to Mike Nithavrianakis, British Deputy High Commissioner in

Chennai

India has signed the gas sale purchase agreement (GSPA) for the Turkmenistan-

Afghanistan-Pakistan-India (Tapi) gas pipeline, which upon completion would

diversify its gas basket. Within five years, the country would have access to

imported natural gas, in addition to imported liquefied natural gas (LNG) and

domestic sources, including coal bed methane gas on 24th

May, 2012

The Free Trade Agreement (FTA) between India and Switzerland is expected tobe concluded by the end of 2012, according to Rolf Frei, Consul General of

Switzerland for India. "The agreement will give a significant boost to bilateral trade

between India and Switzerland," Frei added on 23rd

Headlines

May, 2012. The two-way trade

expanded from US$ 7 billion in 2005-06 to US$ 35 billion in 2009-10

AIF III Mauritius' FDI propos

among 25 cleared

Ranbaxy gets US FDA nod

acne treatment drug

Centre promoting pharma clus

in coastal AP

India expansion on for glob

cash & carry chains

Japan likely to be a partner

national manufacturing polic

JETRO India chief

UK looking to invest in sele

sectors in Kerala

Tapi agreement set to expa

India's gas basket

India, Switzerland may conclu

FTA by year-end


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Biz Policy Updates

The present provisions of Foreign Exchange Management Act, 1999 does not

allow the funds in the NRO account to be transferred into NRE Account. With a

view to ease the provisions for individuals, The RBI on 7th

May, 2012 has allowed

NRI to transfer their funds from the NRO account to NRE account within theoverall ceiling of US $ 1 million per financial year.

Where the individual wants to remit the amount outside India for miscellaneous

purpose he can remit upto USD 5000 without submission of any document

including Form A2 (declaration form) rather only simple letter containing names

and the addresses of the applicant and the beneficiary, amount to be remitted and

the purpose of remittance, is required to be submitted with AD.

Now, with a view to further liberalize the documentation requirements, the limit for

foreign exchange remittance has been raised from USD 5000 to USD 25000 with

immediate effect from the issue of circular No. 118 issued by RBI on May 07,2012. So, the individual can remit upto USD 25000 without submission of any

document with Authorised Dealer

As per the extant provisions ECB proceeds can be utilized for Foreign exchange

expenditure as well as for Rupee expenditure. Vide A.P. (DIR Series) Circular No.

52 dated November 23, 2011, it became mandatory to bring the ECB proceeds in

India which is to be utilized for Rupee expenditure.

Now, as per the Circular No. 119 issued by Reserve Bank of India on May 07,

2012, and on a review of the policy it has been decided that at the time of availing

Loan Request Number (LRN) from RBI, borrowers are required to give bifurcation

of the utilization of the ECB proceeds towards foreign currency and rupee

expenditure in Form 83.

On 8th

Under the Erstwhile FDI Policy, foreign investment by FDI and FII together

allowed in commodity exchanges up to 49% under the approval route. Within this

cap of 49%, FDI investment is allowed up to 26% and FII investment under

portfolio investment scheme (PIS) is allowed up to 23%. With the change in the

policy, DIPP has now removed the condition of seeking prior approval of FIPB

before any investment by FIIs into commodity exchanges. However, the FDI

investment in commodity exchanges would continue to be under the approval

route.

May, 2012, RBI has come up with circular for limiting the timeline for

investment by FII in Commodity exchanges and creating liquidity.

Legal Headlines

Transfer of Funds from NoResident Ordinary (NRaccount to Non-Reside

External (NRE) Account

Release of Foreign Exchange Miscellaneous Remittances

External Commercial Borrowin(ECB) Policy - Utilization of ECproceeds for Rupee expenditur

Investment by FIIs in commodexchanges under automaroute


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Online Retailing On High in India

India's Information Technology (IT) and information technology enabled

services (ITeS) segments are aligned in a way that the growth in one avenuehas ripple effects on another. The IT & ITeS industry, as a whole, is themainstay of Indian technology sector as it has driven growth of the economyin terms of employment, revenue generation, standards of living etc and hasplayed a major part in placing the country on the global canvas areas.

In the recent times, it has been seen that emergence of internet retailing and ecommerce is driving the growth of number of online shoppers resulting inmore and more number of internet retail companies being attracted towardsIndian Markets. There are about 17 million online shoppers in India and thenumber is projected to grow over three times in the years to come.The online shopping trend is not just restricted to mass market shopping, butalso extends to luxury goods, the fastest growing segment. However, the

online market still continues to be dominated by shoppers looking forpremium, affordable products at the cheapest prices.

The digitally-enabled environment is fast changing consumer shopping habits.

Starting the Online Store-----

Find a niche market and products that can make a profit selling online

Identify the gap in the market

Obtain the Domain Name

Find genuine wholesale vendors

Design the website as attractive as you can

Obtain Payment Gateway at your website

Market your store through Multiple traffic sources and get customersin the door without spending a dime

Convince your customers to buy once they land at your website

Sell goods online and earn huge profit

Legal Steps to start the online Business:

List out the different Business Entities i.e. Company (Private or Public

Limited)/ LLP

Compare and Choose the Best Suitable Business Entity

Incorporate and register your Business Entity with the Registrar

Obtain Income Tax Registrations such as PAN, TAN, Service Tax,

and Sales Tax.

Make sure that you apply for the Sales Tax Number if in case you are

selling goods online

Hire Legal consultant to draft legal agreements, website policy and

terms & conditions

What is driving E-commeradoption in small towns India?

Rising Living Standards

Increased Awareness

Greater WireleInternet Access

Lack of goods offliretail channels

Improving OnliAvailability

New Payment options

Demographics of InternMarket

Total Internet users wover 121 million as December 2011

Much of the tech savpopulation is now buyionline though tnumbers lag far behineighbor China

Almost 75% of IndiaInternet users are undthe age of 34

Large number of mobusers access daservices

Women are increasingimportant presenonline- 20-22% of IndiaInternet Users aWomen

Top 10 products bougonline are Boo

Electronic goodRailway tickeaccessories, ApparGifts, Computer, AirlinMusic, Movies

Source: Nassc


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Other things to be kept in mind:

Arrange a web designer for designing your web portal to sell goods

Tie up with the vendors/ distributors for sourcing the goods

Tie up with the courier agencies

Employ the Delivery staff to deliver goods

Protect your Brand name by registering the Trademark, Patents, etc.

Milestones to run a successful online Business:

Proper guidance and education are the two points from where aspiringentrepreneur can run a successful online business. For any start ups, aBUSINESS PLAN allows you to gain a better understanding of yourbusiness idea, of your industry structure, competitive landscape; this willgive a confidence in proceeding ahead in the business successfully

So if youre ready and have gained considerable business sense, hereare the top touch points about starting your own business.

Starting A Business with extensive Market Research

This is a wrong statement that starting your own business has to be

expensive and chancy attempt. Also, it is true that many of the

successful entrepreneurs have self-funded their startups by putting in

huge debts; it definitely does not have to be that way.

Many of the e commerce sites have witnessed that the fact is that you

can earn huge profits within a span of a year or two from your online

store! And afterall, we are blessed with great Google tools on Internet,

starting your own online business is as inexpensive and risk free as

ever provided you have already analyzed the gap in the market i.e.

MARKET RESEARCH. Online Business means reaching the large

size of market and reaching large number of customers. And, this is

one of the most remarkable aspects of running an online business

rather than a traditional retail store is that you can reach hundreds of

millions of potential customers 24 hours a day, 7 days a week. The

best part about opening a store online is that your business will

continue to grow as word of mouth travels about your store and you

become further entrenched in the search engines.

Designing a Attractive Website

Despite people are Internet Savvy, still they are not aware of

designing and launching the business website.

Advantages of doing Busine

Online in India

CostsOne of the biggest advantagof doing business online is t

savings that can be achievby both consumers abusinesses. Reducing gconsumption, paper use aemployee time are just somof the cost-saving benefits commerce provideMaintaining websites is gettiless expensive with tooavailable that anyone withcomputer can easily learn use.

ReachOnline trading easily goglobal through the InternReaching customers arouthe world is possible throuthe Internet, while markeopen for a worldwiaudience. Payments aautomatic through secucredit card services and onlipayment services such PayPal.

FlexibilityRarely can a business keep doors open 24 hours a daseven days a week. Whdoing business online, theare no time restrainBusinesses can reacustomers at any time. Smbusiness owners, oftoverwhelmed by the timconstraints they face durithe day, can conduct businewith vendors and clients afhours. Students looking

further their education cattend classes when convenient, providing a humarket for online trainin

Source: ehow


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Big numbers

Internet retailing is emerging as an entirely new avenue to be explored.According to estimates made by an industrial body, India's online retailindustry is anticipated to surge to Rs 70 billion (US$ 1.43 billion) by 2015 fromRs 20 billion (US$ 405.93 million) as broadband is becoming increasinglyaccessible and internet penetration is increasing. Another report by AvendusCapital Pvt. Ltd states that e-tailing would become a Rs 53,000 crore (US$10.76 billion) market by 2015 from the current Rs 3,600 crore (US$ 731million). ent, this sector is capable of maintaining the growth momentum in thefuture.

Source: ibef

Business IDEA OF THE Month

Online General Store:

Do you want to own an online Shop? If yes, then, go ahead withstarting online business in India. These days people are so busyin their lives, that they dont have time to go out for shopping dailyneeds. Online businesses have an advantage over businesses inthe real world. They all have 13 inch monitors as our windows tothe customer. The idea is to start an online daily needs store likeonline Big Bazaar including grocery products, bathing products,etc.Online Business is need of the hour as more than 60% of the

online shoppers planned to buy even more on Internet in thecoming year. Also, the maximum number of online shoppers isfemales. So, you have many options to start this business. Butbefore starting, keep in mind that, naming the business is veryimportant before starting the business and marketing strategy isalso important. The e-commerce model also saves theadministrative costs. However, just like starting a physical shop,online shop also demands the entrepreneur passion and high levelof optimism.All you have to do is planning, excellent marketing approachincluding SEO tool, 24 / 7 presence, timely delivery of products,transparency and customer satisfaction. And there are highchances to have your presence globally if you have updatedinformation at your portal. You can appoint dedicated personnel formanaging the web portal. Make sure that you get associated withpaypal or payment merchant for receiving payments online.

Always remember, Doors for online business never close


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StartBizIndia Discussion Platform

What do I need to do, if I wish to start an IT consulting business in

India?

Just like before starting any business, you have many questions to ask,

like whether the business will be profit earning objectives or non profit

objectives, be it a short term or Long Term, who will be the owners, which

business entity to choose, which business entity is best suitable to my

business, how to save tax, etc. Also, you'll need to determine if you'll be

providing these services through an online platform or offline. And, it

matters that what will be the location of the business taking in

consideration different number of facts like the tax incentives, and which

form of business entity will best serve your needs. In brief, there are

number of things to work out before starting the business like working on

the Market Research, draft Business Plan, planning the best location to

open at, may be as per the tax incentives offered in different states inIndia, registering the Company with the Registrar of Companies, obtain

the business licenses, comply with the FEMA Act, recruitment of IT

consultants and other personnel, register with Intellectual Property Rights

and then, you are ready to move ahead and do the business legally.

Can a foreign national invest in IT Industry in India through LLP as

the Business Structure?

Yes, a Foreign National can invest in LLP subject to FIPB Approval.

LLPs with FDI will be allowed, through the Government approval route, in

those sectors/activities where 100% FDI is allowed, through the automatic

route and there are no FDI-linked performance related conditions.

By FDI-linked performance related conditions, it is meant that in sectors,

where conditions like minimum capitalization etc are prescribed like

development of Townships, NBFC, even though 100% FDI is allowed

under automatic route, LLPs will not be allowed to bring FDI with the

approval of Government of India. Since, FDI in IT sector is 100% allowed,

so, a foreign national can invest in LLP with the objective to do business

in IT sector.


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Upcoming Business Summit

SME Conclave Meet Your Bankers

Associated Chambers of Commerce and Industry of India (ASSOCHAM) isorganizing a Seminar on SMEs Conclave - Meet Your Bankers on 19thJune, 2012 at Hotel Chancery Pavilion in Bangalore. The seminar will focuson the SME business opportunity in India which can be seen in possibly everysector - Financial Services, Telecom, Education, Automobiles, Media, Food,Real Estate, Pharmaceutical, Textile & Garments, Retail, IT and ITes, Agroand Service sector and so on making India a hub for best small businessopportunity in various segments.

Date: 19th

Venue: Hotel Chancery Pavillion, BangaloreJune, 2012

Indo-German SME Pavillion

It is a platform for Indo-German small and medium sized businesses to show-

case their products/ processes/ ideas/ ideology/ company image in line with

the central theme.

Date: 22nd

Venue: Palace Ground, BangaloreJune, 2012

The India Show

With the rising aspirations of the Indian industry to expand its global horizons

and with Africa fast positioning itself as a promising business and investmentdestination, "The India Show" is an excellent opportunity for Indian andAfrican business community to showcase their best. A three day event, thisimportant business platform provides you ample of opportunities to networkwith the key stakeholders like policy makers, captains of industry, financialinstitutions and business solutions providers.

Date: 9th

July 2012 to 11th

Venue: ACCRA, GhanaJuly 2012

National

SME Conclave- Me

Your Bankers

Indo-German SMPavillion

Inter National

The India Show


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P a g e |10

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Contact Us

Disclaimer:

This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper havbeen developed for the new startups. The author and the Company expressly disclaim all and any liability to aperson who has read this paper, or otherwise, in respect of anything, and of consequences of anything done, omitted to be done by any such person in reliance upon the contents of this paper.

Neha Seth

[email protected]

D: +91.11.40622239

Visit us at

A Venture of

D- 38, Ist Floor, South Extn. Part I New Delhi

110049

T: 40622200 F: 91.40622201

E: [email protected]

Shipra Paul

[email protected]

D: +91.11.40622246
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Corporate Professionals eBizwire June 2012