How to open a cafe in india

Thanks everyone,
To clarify a bit better; i am currently based in Mumbai and am volunteering here, I'd love to stay and I feel there are many possibilities to run a succesful business here, the one we have in mind is a smaller scale cafe/take away shop with a very specific produce and I have a background in catering and i feel it could possibly be a hit.
I would run this business with my indian partner and friends so there are no trust issues. As far as investment it could most likely also be organized.
I have never setup a business before, let alone in India! We can easily find out the procedure of setting it up but it is my visa status and my role that i am unsure of hence why i'd love to hear from someone who's done the same here.
I've too have met many foreigners in Goa who runs or owns guesthouses and bars but have never asked any details from them unfortunately.

The 1 crore rule confuses me; its supposed to be generated after two years of business, it might very well be possible in Mumbai but what would happen if we don't hit that target, would i have to leave?

I guess speaking to an immigration lawyer would be the best place to start, if anyone has any idea of who to turn to that would be great

Thanks again for your replies, IM is the best!

If you want to be sure and get a comprehensive written overview and guidance then the best advice I can give is to contact one of the big 4 consultancy firms in India (KPMG, E&Y, PWC..).

They offer 'packages' for setting up a company and make sure all bases are covered. It'll cost a couple of 1000 USD but you'll have legal certainty and they take care of the practical matters (incorporation, documents etc). Doing it yourself or ia friends whose interests might not in the future correspond with yours is risky, as is dealing with the authorities. From what I understand for instance the authorities could decide not to extend a business visa if after 2 years you don't meet the criteria, leaving you in a lurch.

Am I mistaken, or what !!! I vaguely remember you mentioning that you have international experience setting up small businesses ?

You have to do a due diligence on your business proposal, get it vetted by a Bank Loan Officer (after all you would need a line-of-credit) and then go to dillichaat's suggestion on getting help from one of the big 4. If you cannot afford that consulting fees; then go back to the drawing board.

Talking to an immigrations lawyer is tad premature; unless the whole exercise of setting up a cafe was to stay here indefinitely - In which case are you not better off just taking the plunge and tie the knot ? After a year, no visa hassles, no 25K/year rule, no 100,000,000 Rs annual sales headache. All automagically vanishes.

Thanks again guys,

I've never setup my own business from scratch before, registered and dealt with the legal aspects, i've been running a few businesses in Europe if that was what you were referring to (cool you remembered!)

I know my partners very well so I have complete confidence in them. As to hire a consultancy for a couple of 1000 dollars, that is way to much for us, i hope that would not be necessary.

I am not sure whether i would like to stay in India permanently, as I've said I've seen an opportunity i believe could be successful as it doesn't exist here yet, i am pretty sure in a few years it will be and i'd like to try my luck
As for marriage, that is private but I wouldn't marriage just to get a visa....but that's just me

Well, as I previously said I assume you know what you're doing but nycank was probably thinking about the same thing I was when he mentioned going back to the drawing board if you can't afford the consultancy fees: right after a bad business plan, the number one reason for failure in the hospitality sector (at least in Europe) is undercapitalization. Think it through. Good luck.

Yes i understand what you are saying, at the moment we are in the beginning of researching all areas. As for funding it will be privately funded from us and also a silent partner but we are not looking at spending more than necessary and as i mentioned it is a smaller scale business.

Anyways, i'd still love to hear from someone who's done this in India if possible.