5 Things to Consider When (*5*) to India

I recently expanded into India. This decision was driven by several reasons. Undoubtedly, the size of the Indian market, with over a billion potential customers, was very attractive. The established call center and outsourcing industry in India also presented a great opportunity for our time tracking software.

Another key factor was the growth in user base in India during the pandemic-induced shift to distant work, which highlighted the need for tools to track distant work hours. India became our leading source of recent subscriptions, accounting for almost half of our customer base. This user growth naturally led us to explore further opportunities in the Indian market.

Finally, a change in Indian laws in 2021 forced us to act. Automated payments had turn out to be unreliable for businesses not registered in India, especially subscription-based models like ours. This created a customer support nightmare with constant support calls. To re-launch automated payments and streamline our operations, we wanted an Indian checking account, which required a registered Indian company.

Here’s what we have learned so far about doing business in India.

1. Be prepared for bureaucracy

Despite India’s efforts to modernize, there is a surprising amount of bureaucracy. The technique of registering a company involves a lot of paperwork and lengthy processes, especially when it comes to opening a checking account. This is partly due to a crackdown on fraudulent corporations that registered during COVID.

Another big challenge is how Indian authorities treat documents. Approvals often involve sending physical copies back and forth, including some that require physical stamps that are rarely used elsewhere. The Indian government also requires very detailed documentation to prove ownership and residency.

2. Find reliable local partners

Since Indian law requires at least one director of a company to be an Indian citizen, you’ll need trustworthy partners there. In addition, navigating the process requires a local representative to handle in-person meetings and paperwork.

It quickly became clear that we wanted to partner with a company that specializes in helping international corporations enter India. After researching and comparing prices (which vary significantly), we finally found reliable partners that were a good fit for our business.

Working with such local agents is a good arrangement if you do not require a significant physical presence in India right from the start. You can use their office as your registered address and pay them a monthly fee for their services.

Once you discover your Indian partners, take cultural differences into account. Be prepared for more frequent checks due to cultural differences and concentrate on potential delays during holidays.

3. Use the power of word-of-mouth marketing

Indian customers are known to spread the word about helpful solutions. In our experience, if your product appeals to the Indian market, you may gain good traction through word-of-mouth marketing.

Our clients also played a big role in raising brand awareness in India. Once we had a good Indian user base, we began asking for case studies and success stories for our marketing materials.

Now we’re taking localization a step further by rebuilding our sign-up process with design and messaging that resonates with the Indian market. We consider it will help us be seen as more credible and relevant locally.

If this is applicable to your form of business, running a reseller program in India is one other strategy that may leverage the power of word-of-mouth marketing while generating a healthy revenue stream.

4. Gather information from your sellers

Reseller programs in India have played a key role in acquiring large customers and driving our growth. We have actively sought their feedback, which has given us invaluable insights into what works and what doesn’t in the Indian market.

Here’s what we learned about working with resellers in India:

• Build relationships: The Indian market values ​​strong relationships. Sellers want to make sure of a product before selling it.
• Prove your value: Indians are cautious about accepting latest things. You have to reveal the value of your product before they are going to take an interest in it.
• Avoid conflicts with distributors: If you choose to sell directly in India, watch out about pricing, negotiation and territory to avoid competition with your distributors.

Retailers also help us determine the best way to advertise in India. Price is key for Indian customers, so they often prioritize the least expensive option over features.

5. Choose the right city

Because India is so vast, selecting the right city to do business in may be just as vital as selecting the right European country. The location of your online business is especially vital when you first start out and go through the registration process. Once you’re established, it doesn’t matter where you’re employed from.

We selected Delhi as the capital and Bangalore as a type of Silicon Valley of India. We selected Delhi because we found partners there and it was cheaper to start the business.

Whichever option you select, seek the advice of with local partners and seriously consider geographic considerations, akin to which locations have the best air connections to your headquarters and other operations.

Starting a business in India may be difficult unless you do your research and preparation, and find a reliable local representative to provide help to navigate the bureaucracy. For DeskTime, this expansion is an experiment with the potential for significant profits.