Case study India Entry Strategy

Case study – India Entry Strategy

Client Background

Normet is a world renowned manufacturer of mobile equipment and vehicles for underground mining and tunneling. The company has

it’s presence across Europe, CIS countries, America and Asia – Pacific. The company was established in 1962 and is employing 325

people world-wide.

2008 - Business Plan

Overview of Indian Mining and Tunneling industry

Detailed information about Construction equipment Industry in India

Domestic market trend and technology Existing opportunity and threats in Indian market

Sales Network structure and after sales services offered in India

Detailed Company profile of the competitors

Product range offered by competitors in Indian market

Sales and Service network Geographical spread over of competitors in Indian market

HS Code of the Normet equipments that needs to be imported

Customs duty calculation

Information about the concession provided by Indian government on Import duty

Legislative details and

Information about Approval and Certification body

List of potential customers in India in mining, rental and project

implementation companies

Detailed profile of potential company Upcoming projects and future prospects

Purchasing process

Details of warranty and payment Short listing of potential location

where manufacturing facility could be set up based on various criteria such as human resource, cost of land, Infra structure, material availability, Industries and location of potential customers

Suggestion on appropriate feasible manufacturing strategy

List of potential supplier companies was provided along with following details

Website

products manufactured client details

2009 – Establishment of Brach office and Homologation

Homologation

As per Motor Vehicle rules there are

certain safety critical component which

has to be fitted in construction

equipment vehicle. The component that

has to be fitted should be approved by

one of the testing agency as mention in

Central Motor Vehicle Rule.

Activities carried out



Representing client at various

agencies such as Automotive

Research Association of India, Central

Power Research Institute, Indian

Institute of Packaging etc



Witnessing testing activities



Routine documentations as required



Local modification as required by

legislation



Issue of homologation certificate/test

certification along with reports

Establishment of Branch Office

After homologation to sell the Normet

vehicle, Normet planned to open branch

office in India. By opening office branch

office Normet can undertake export/import

of goods, render professional service, act as

buying/selling agent etc…Hence in order to

open branch office BA offered following

services in order to establish a branch office

in India.

Services offered by BA



Submission of necessary documents such

as

certification

of

Incorporation,

Memorandum of Association , Audited

balance sheet, , Value of goods to be

imported, activities proposed to be

undertaken,

office

location,

Board

resolution etc… to Reserve Bank of India



Submission of necessary certificate to

Registrar of Companies

Over a period of time, exploring the Indian market and assessing the existing potential for Normet’s equipments in India,

Normet decided to establish a private limited company 1.e. 100% fully owned subsidiary in India. Hence BA assisted them in

closure of branch office and establishing Private limited company

2011 – Private Limited Company

 Handle the formalities

for approval of company name for subsidiary

 Draft the Memorandum

and Articles of Associations

 Handle the Incorporation

of the company

 Obtain local approval and

clearance by the approved

authorities, i.e. the Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), etc.

 Open a Bank account for

the Private Limited Company

 Issue shares to the first

Directors

Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out  Registration and License under Shop

and Establishment

 Obtaining Import-Export Code

 Registration for Tax deduction (TAN)

 Service Tax Registration

 Registration under VAT (Value Added

Tax)/CST (Central Sales Tax)

 Registration under Professional Tax (if required)

 Permission letter from RBI  Certificate from CA saying

that the company has cleared all its dues and submit it to RBI

 Providing proper reason for closure of Branch office in India to RBI

Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out  Registration and License under Shop

and Establishment

 Obtaining Import-Export Code

 Registration for Tax deduction (TAN)

 Service Tax Registration

 Registration under VAT (Value Added

Tax)/CST (Central Sales Tax)

 Registration under Professional Tax (if required)

 Handle the formalities

for approval of company name for subsidiary

 Draft the Memorandum

and Articles of Associations

 Handle the Incorporation

of the company

 Obtain local approval and

clearance by the approved

authorities, i.e. the Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), etc.

 Open a Bank account for

the Private Limited Company

 Issue shares to the first

Directors

Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out  Registration and License under Shop

and Establishment

 Obtaining Import-Export Code

 Registration for Tax deduction (TAN)

 Service Tax Registration

 Registration under VAT (Value Added

Tax)/CST (Central Sales Tax)

 Registration under Professional Tax (if required)

 Permission letter from RBI  Certificate from CA saying

that the company has cleared all its dues and submit it to RBI

 Providing proper reason for closure of Branch office in India to RBI

 Handle the formalities

for approval of company name for subsidiary

 Draft the Memorandum

and Articles of Associations

 Handle the Incorporation

of the company

 Obtain local approval and

clearance by the approved

authorities, i.e. the Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), etc.

 Open a Bank account for

the Private Limited Company

 Issue shares to the first

Directors

Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out  Registration and License under Shop

and Establishment

 Obtaining Import-Export Code

 Registration for Tax deduction (TAN)

 Service Tax Registration

 Registration under VAT (Value Added

Tax)/CST (Central Sales Tax)

 Registration under Professional Tax (if required)

 Permission letter from RBI  Certificate from CA saying

that the company has cleared all its dues and submit it to RBI

 Providing proper reason for closure of Branch office in India to RBI

 Handle the formalities

for approval of company name for subsidiary

 Draft the Memorandum

and Articles of Associations

 Handle the Incorporation

of the company

 Obtain local approval and

clearance by the approved

authorities, i.e. the Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), etc.

 Open a Bank account for

the Private Limited Company

 Issue shares to the first

Directors

Pursuant to the registration of 100% subsidiary following Post Registration activities/formalities were carried out  Registration and License under Shop

and Establishment

 Obtaining Import-Export Code

 Registration for Tax deduction (TAN)

 Service Tax Registration

 Registration under VAT (Value Added

Tax)/CST (Central Sales Tax)

 Registration under Professional Tax (if required)