INDIA

A12149 Maiko Yoshida

3,287,263㎢ 7th largest

1.27billion

2nd largest

HinduismIslamSikhismChristianityBuddhismJainismZoroastrianismJudaism

GDP: $1,876,797,199,133GDP per capita: $1,165 GDP growth: 5.0%

Major industries in India

Textile industry jute, wool, silk, cotton

Chemical industry plastic, pesticides, beauty products

Cement industry has 115 cement plants and 300 small cement plants

Steel industry 400 years old

Software industry massive expansion in the last 10 years

Petroleum industry one of the most flourishing oil markets in the world

Environment (current issues) Deforestation Soil erosion Overgrazing Desertification Air pollution Water pollution Tap water is not potable throughout the country Huge and growing population is overstraining natural resources

Language

There is no national languageOfficial language: HindiCommonly used: EnglishOver 400 languagesOver 2,000 dialects

Clothing

Sari Dhoti Kurta

It’s illegal to take Indian currency out of IndiaBreathing the air in Mumbai, for just one day is equivalent to smoking 100 cigarettesA man married a dog in India as atonement India has more mobile phones than toilets India has the largest slave population in the modern world with over 14 million slaves

Facts in India

The number and the concept of zero was invented by Indians India has the largest population of English speakers in the world In the next two to three years, 25% of people entering the workforce will be Indian

Number of Japanese companies in India

1,072 Japanese companies in India (2013)

Number is doubled in 5 years

Parts manufacturer, health line, service industry

Ease of Doing Business in India

Rank 140th in 2014

Starting a business: 156th Dealing with construction permits: 183th Enforcing contracts: 186th Paying taxes: 154th

Starting a business in India

13 procedures in India(7.9 in South Asia, 4.8 in OECD)

30 days in India(16 days in South Asia, 9.2 days in OECD )

Starting a business in India1. Obtain director identification number (DIN) online 1 day2. Obtain a digital signature certificate 1 day3. Reserve the company name with the Registrar of Companies (ROC) online 2 days4. Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation 5 days5. Request and obtain Certificate to Commence Operation 5 days6. Make a seal 1 day7. Obtain a Permanent Account Number (PAN) form an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) 7 days8. Register with Employees’ Provident Fund Organization 12 days9. Register for VAT online 10 days10. Register for medical insurance (ESIC) 9 days 11. Obtain a tax account number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department 7 days12. Register with Office of Inspector, Mumbai Shops and Establishment Act 2 days13. Register for profession tax 2 days

Government incentivesNo special incentives for foreign affiliated firms except......

Infrastructure sectors Investing for research and development investing for generating electricity Renewable energy Mineral oil sectors Hospitals

Infrastructure sectors Deduction of 100% of profits from business for 10 years

Mineral oil Deduction of 100% of profits from the Business of Refining Mineral Oil for 10 years　　 Hospital

Deduction of 100% of profits from business of operating and maintaining Hospital for 5 years

Special Economic Zone (SEZ) referring to economic zone In these zones, business and trades laws differ from the rest of the country Offering tax and other incentives to their resident businesses

The objectives of SEZs:1. Generation of additional economic activity2. Promotion of exports of goods and services 3. Promotion of investment from domestic and foreign sources4. Creation of employment opportunities5. Development of infrastructure facilities

Examples of the advantages setting up a manufacturing platform within a SEZ

Duty free domestic procurement of goods for the development and maintenance of your company 100% income tax exemption on export income for first five years, 50% for five years following Exemption from Minimum Alternate Tax, Central Sales Tax, Service Tax, State Sales Tax, and a number of other taxes usually levied by local governments External commercial borrowing allowed up to US $500 million a year without restriction Permission to manufacture products directly, as long as the goods you are producing fall within a sector which allows 100% FDI

Documents required for exports in India

Principal Documents

Commercial Invoice

Packing List

Bill of Landing

Certificate of Inspection

Certificate of Origin

Bill of Exchange

Shipment Advice

Insurance Certificate

Auxiliary Documents

Proforma Invoice

Intimation for Inspection

Shipping Instructions

Insurance Declaration

Application for certificate of origin

Mate’s receipt

Letter to bank for collection

Japan to India

Toilet High quality of toilet Hotel

Fixed price: ¥360,000

From Kobe port to Chennai port360,000 x 0.6 = 216,000 (cost)216,000 x 0.03 = 6,480 (freight)216,000 x 0.05 = 1,080 (insurance)216,000 + 6,480 + 1,080 = 223,560 per unit

Chennai port to Hilton hotel 223,560 x 0.288 = 64,385.28 (Basic custom duty + additional duty + additional duty of customs)223,560 + 64,385 = 287,945287,945 x 0.01 = 2,879 (transport cost) 287,945 + 2,879 = 290,824290,824 x 1000 = 290,824,000

¥290,824,000(Cost that Indian company imports toilet and send it to Hilton hotel)

India to Japan

Tea set (Darjeeling, Nilgili, Assam) Premium Selling at department store or a year end present Improving India’s image

From Chennai port to Kobe port2,000 x 0.6 = 1,200 (cost)1,200 x 0.03 = 36 (freight)1,200 x 0.005 = 6 (insurance)1,200 + 36 + 6 = 1,242 per unit

Kobe port to SOGO in Sannomiya 1,242 x 0.1 = 124.2 (tax)1,242 + 124 = 1,3661,366 x 0.01 = 13.66 (transport cost)1,366 + 13 = 1,3791,379 x 1,000 = 1,379,000

¥1,379,000(Cost that Japanese company imports and bring it to Sogo)

Thank you!