British expats wanting to open a new business in Kerala.

Hi John,

Many thanks for your advice and concern. It really is appreciated as I have heard a lot of horror stories from people being conned to inadequate research and local bureaucracy in India . I'm a big believer that a fool and his money are easily parted and I intend to research the subject very thoroughly before parting with 1 Rupee, even if this takes a number of years. I read a quote earlier from another thread that I quite liked. A great idea will still be a great idea in 1-5 years time.

My wife and I are fortunate enough to have an alternative income so there is no rush to set anything up and I can always dedicate my spare time to local charity work until I am satisfied with starting a business.

I have lived in Vietnam for a number of years and I'm very accustomed to how things work (or don't as often as the case is) in Asia. They have a totally different way of life, mentality and approach to business. Saying that, I have found Indians to be far more welcoming, friendly and sincere than the majority of people from South East Asia.

Thanks again and I hope to exchange further emails.

Kind regards

Gary

As you indicate, the best you can do is spend 6 months in South India, identify a place which would suitable for the business and where you would consider spending time (nice people, good climate etc.). I am almost 100% certain that your conclusion, after spending time in South India, will be that Kerala is that place for most of the factors mentioned above. There aren't many horses in Kerala though.

In most industries, 100% foreign owned Indian companies are allowed (previously, an Indian had to hold 49% of the shares).

The legal side of running a business, from setting up the company to filing accounts etc., is straightforward, i.e. this part of Indian bureaucracy works very well. You can do it yourself or get a company secretary to do it. The total cost for setting up a company should not exceed Rs. 50000 (I read about someone who paid around Rs. 200000, but that was clearly a rip-off).

The main problem for anyone having to spend more than 6 months in India, is the visa situation. If you will be going forth and back, this won't affect you. However staying for more than 6 months is getting increasingly difficult.

You shouldn't have any concerns about the political situation in Kerala. Soon there is an election, the Communist Party will lose many seats, and the Congress Party will take over government. Not that it will make any difference.

There are so many things to consider, and writing it all on IndiaMike would take forever. If you find out as much as you can about "Foreign Direct Investment" (FDI) in India, and post any questions you may have, someone here will definitely be able to provide you with an answer.

Hi Pundabee,

Many thanks for your informative and positive reply. Vandy posted that you would be the best person to chat with and I get a feeling he was right.

Although Horses aren't plentiful in Kerala, they are in the surrounding states. Bangalore, Ooty and a few others areas have a large selection of horses and ponies, however we definitely do need to do more research on that.

Great news about the Foreign Owned Indian Companies as well as the ease of setting up and running a business by the way.

If all goes to plan, we will probably use an already established Community Charity Organisation to assist us in setting up the business as well as doing the accounts. We have identified a possible organisation already which is located not too far from the Neyer Dam. Have you ever heard of Dale View? We were introduced to the founder, a local man called Christudas, by a guy we know who's a lawyer in Denmark. He carried out voluntary work at Dale View 30 years ago and still keeps in regular contact with the founder and his wife. They have even visited him in Denmark several times. We still have yet to decide if this is right for us as it still is early days.

The visa issue may eventually be a problem, however there may be ways round it in 2+ years time. I have read on various posts that it is possible to get a business or working visa, however these are rarer than hens teeth. When it boils down to it, leaving the country every 6 months for 2 months isn't that bad to be honest. It gives us all an excuse for a holiday from our holiday.

Many thanks for the FDI info too. I'll certainly be asking loads of questions as I plough through the quagmire of possibilities.

Once again, thanks for your extremely helpful post.

Where are you living in Kerala by the way? I'm not a stalker so you're safe.

Kind regards

Gary

ohhhh...what an awsome idea!!! I would love to be a part of this as learning horse riding is on my recent priority list.

Hi Gary,

I am sure you are not a stalker (our location is the Thekkady area). As an example, stalking is one of the many ways Kerala differs from the UK. In the UK, getting rid of a stalker is very difficult. In Kerala, it is very easy. A friend or family member of the victim will approach the stalker and tell him that continuation of such behaviour will leave him a limb shorter. It works. Still, people are usually very reasonable in Kerala, i.e. it is not much of a problem. Cultural differences like that, and approaches to problem solving, are important to know.

I didn't know the place or people you referred to, but it naturally leads to the concept of trust: it is of much greater importance here than in the UK, especially because you will be doing business. A naïve person doing business in India will be a guaranteed loser. A person who is too sceptical will do no business. It is possible to talk at length about this, but IndiaMike is probably not the right place since it could lead to lengthy and oversimplified discussions about national characteristics. The fact remains though, that there is a huge amount of interaction required when in India, i.e. a lot more than in the UK where it is possible to live a life with no social interaction whatsoever. Consequently, you will have to evaluate people a lot more. Anyway, I am digressing.

You should check the Reserve Bank of India for up-to-date information about the Foreign Exchange Management Act (FEMA).

If your plan is to set up an Indian company whilst in India, there is some paperwork that has to be done in the UK before leaving without which setting up an Indian company is not possible. I will dig out the information, if that is your plan.

Pundabee, don't forget quotation teams, for sorting out stalkers.

Plse post what info you have on the open forum, as I am sure it will benefit many readers. Thanks

Quotation teams and limbless stalkers? I hope you guys haven't had too much sun? Thanks again for the heads up. Returning to the UK to register something isn't a drama so we'll deal with that when it arrises. I have heard that companies must be opened in the home country first, however as I mentioned I should imagine that this is a while away.

Social interaction is one of my favourite past times so looking forward to it. Scepticism is definately required when moving to a developing country, however I couldn't agree more that an excess of anything isn't a good thing.

Thanks again for offering with further research, things are a lot smoother with an experienced hand to guide.

I look forward to chatting to you guys again on my return.

Kind regards

Gary

If, as you infer, you end up on a tourist visa, it could be a big drama as you will need to spend two months registering something!

Thanks for your advice Johnny, however as I've mentioned we're in no rush. If it takes 2 months or 22 months to register, so be it. Best to do it right then not at all.

Hello
after reading all the discussions I am really wondering how all of them speaks kerala as a hell to start a business
As a keralite by birth and my business experiences never allow me to say a yes to all the comments
If you are true in heart and ready to obey all the rules (including taxes)Kerala is surely not a bad place for start ups
But I am not sure about how an expat can directly run a business in India and I strongly believe that you need a local partner for that
the two negative points I can point out is
1 the high cost of Land in Kerala ,since a riding school needs lot of land I think

2 The second concern is about the students for your school.If that school is meant for kearal students I am not sure about how much they can spend for Horse riding

if these two things you can manage it is quite easy to set up your dream project here
My suggestion is to start your project is either in Idukki district or Wayanad district of Kerala
My first choice is Wayanad.because
The land is little cheap there
It was a virgin green forest district
Near to Banglore ,which is the only place in South India horse riding is a regular practice
The only Veterinary university in Kerala is located in Wayanad
please consider these things ,and surely I will be available for any help regarding this
I am not posting my personnel contact details here since it is against the fair practices in India mike forums
pls do post your reply in the same forum and it will help all the members to share their ideas here

Actually, you will find that there isn't anything negative in my comments.

Concerning your second point, it is not about belief but fact. The rule is that in almost all sectors, 100% foreign share holding in an Indian company is permitted. It has been like this for more than 5 years.

The rest of your points and suggestions are, I think, very well analysed.

OK, my phraseology was not as clear as it could have been.

You had discussed trying to do what you want to on a tourist visa.

You then mentioned popping back to the UK to register something.

On a tourist visa you will then have to stay out for two months.

Therefore not a good idea to have forgotten to do any paperwork before you leave.

Also, quite frankly, daft to even think about running a business in India on a Tourist visa.......

I am really sorry for that
I just only gone through the first page of the discussions which seems to be very negative in aproach
I dont know how I missed the recent page
If I noticed your comment before writing I assure you that I will not write like that ..since it is more informative
really sorry for such a mistake

Don't worry, and there is no need to apologise.

I used to sail, as a passtime.

There was a core group of three of us who would charter a yacht for one or two weeks, and take two or three others along with us. Very often, they would be complete novices. We had a prescription for them, which was to read Arthur Ransome's We didn't Mean to Go To Sea.

It is a children's book (one of the Swallows and Amazons series) about a bunch of kids who are alone on a yacht on an East Coast (England) river when it becomes parted from its mooring and is blown out into the North Sea. We just wanted to warn people, in an easy-to-read way, that, although we were setting out to enjoy ourselves, sailing could easily be bloody uncomfortable and even dangerous. If they were still keen on coming after reading the book, they were welcome. Actually, I can't think of anyone who didn't!

It's ok to point out that India isn't really a tropical paradise. Especially with a place like Kerala: I'll be back there myself soon, falling in love with it as I do, every visit!