market entry and business development support india · sannam s4 is a specialist, single window...


WHO WE ARESannam S4 is a specialist, single window provider of services to support the market entry and ongoing business development of British companies in India. Sannam S4 helps its clients by acting as their local, on-the-ground resource in the region. We combine local technical expertise and resources with practical advice, to deliver low risk and cost effective solutions to enable companies to reach their full potential in the market.

The Sannam S4 team is led by individuals from the UK, who have a long track record of establishing successful businesses in India. Our dedicated local team consists of a range of specialists, including accounting, tax, inward investment advisors, payroll, human resource advisory and recruitment staff, along with market research and validation consultants. Sannam S4 supports a range of British clients, from small and medium enterprises to FTSE 100 companies across a diverse range of sectors including education and

training, government, NGOs, engineering and design, clean technology, renewable and traditional energy, manufacturing, IT, healthcare, hospitality, banking and private equity, retail, and real estate.

Sannam S4 has offices in New Delhi, Mumbai, Bangalore and Chennai, supporting active projects across the Indian subcontinent.

WHAT WE DOSannam S4 has successfully launched a wide range of British companies into India by providing an end-to-end market entry service and ongoing support mechanism. Our services include:

nn LaunchPad Business Incubation Service for New Market Entrantsnn Company Incorporation Advice, Structuring, and Deliverynn Financial, Tax, and Inward Investment Advisorynn Staffing Solutions, Recruitment and HR Advisorynn Accounting, Payroll and Expense Managementnn Local Representation for Sales, Marketing and Business Developmentnn Compliance Managementnn Identification and Due Diligence of Partners, Distributors and Suppliersnn Local Market Research and Validationnn Serviced Office Facilities


INDIA

OUR SERVICESBUSINESS INCUBATION AND LOCAL REPRESENTATION

ESTABLISH & MANAGE A LOCAL PRESENCE WITH LAUNCHPADOur LaunchPad acts as an incubator service for British companies entering the Indian market. The service ensures our clients acclimatise to local conditions with minimum cost and risk whilst enabling them to swiftly and effectively establish a local presence in India.

LaunchPad is the first step towards building your own presence on the ground in India, enabling you to plan your longer term market strategy with invaluable first hand market research with experienced local employee(s).

WHY DO YOU NEED LAUNCHPAD?nn Your company wants to establish a presence in Indiann You would like someone with experience in your field representing your business locallynn You are unclear about the most efficient and effective way to establish a local presencenn You want a low risk entry strategy delivering maximum returnsnn You are not able or ready to establish a local entity at the outset

WHAT SANNAM S4 CAN DO FOR YOUWe review/help you develop your India market entry plan. Our experienced recruitment staff can help you identify suitable local employee(s) with knowledge and experience in your field and recruit them on your behalf. After your staff is hired, Sannam S4 provides them with the required infrastructure, knowledge and support to develop your business across the country, within a fixed budget.

BENEFITS OF LAUNCHPADnn LaunchPad provides you with dedicated full-time local representative(s) without the need for a legal entitynn A ‘hands on’ approach significantly increases the progress of your local opportunities and activities

and provides you comfort in the knowledge that your objectives are being achievednn A world class office environment creating an excellent impression for local businesses engaging with

your companynn A professional local management team will monitor your local representative(s)nn Sannam S4 provides you with an instant local team enabling your dedicated representative(s) to focus

purely on new sales and business developmentnn All payroll, accounting, expense management, and compliance matters are taken care of by Sannam S4nn You have someone with relevant experience reporting directly to you, but supported within LaunchPad

WHAT DO YOU ACHIEVE THROUGH LAUNCHPAD?nn An immediate, full time, local business development presence in Indiann A hassle free, low risk, cost effective and well managed local presencenn A genuine increase in your local business activity and opportunity


COMPLIANCE MANAGEMENTEstablishing the right kind of structure for your activities in India, planning the tax implications of this from your home country, and managing the numerous ongoing compliance and filing requirements in India, is a specialist job. Rather than consuming valuable business development time, Sannam S4 will advise on the best financial market entry strategy and manage ongoing local compliance, payroll, HR, accounting and company secretarial formalities, enabling you to spend more time on engaging with the market.

At Sannam S4 we operate as your local back office HR, accounting, payroll and company secretarial team, keeping your business compliant and free from operational complications at all times.

ASSURANCE AND REGULATORY REQUIREMENTSnn Administering Annual Statutory Requirementsnn Internal Auditnn Financial Accountingnn Financial Accounting Under UK GAAP

LEGAL PRACTICE & COMMERCIAL MATTERSnn Contract Lawnn Company Lawnn Employment & Labour Lawnn Joint Ventures & Related Agreementsnn Negotiations of Agreementsnn Corporate Governancenn Intellectual Property (IP) Protectionnn Anti-Trust Competitionnn Litigation & Alternate Dispute Resolutionnn Advice on Compliance Under FEMA, 1999nn Obtaining Approvals and Permits from

Government of India

COMPANY INCORPORATIONnn Advise on setting up a local company, ownership structure of the business, efficient tax structuring,

ongoing legal and financial compliancenn Incorporation of a new Indian legal entity and advising on its optimum ownership and tax structurenn Applying for Reserve Bank of India approval where required and advising on Foreign Exchange

Management Act (FEMA) rulesnn Ensuring legal and financial compliance of your company and obtaining the necessary registrationsnn Establishing bank accounts, issuing of share certificates, appointing directors, company secretaries, etc.nn Set-up and on going management of your staff payrollnn Verification of your local business plan and budget in line with local parameters (benchmarking

salaries, employee demands, office rental, apartment costs, etc.)


INDIA

ACCOUNTING, PAYROLL AND EXPENSE MANAGEMENT

ACCOUNTING AND PAYROLLnn Day-to-day Accounting and Bookkeepingnn Setup and Management of Employee Payrollnn Management of All Banking Activitiesnn Maintenance of Foreign Inward Remittance Certificates, etc.nn Regular Accounts Reporting (MIS) to International Officenn Preparation of Annual Financial Statements under Indian GAAP for Statutory Reportingnn Manage All Company Taxation Requirements (‘TDS’ Withholding Tax/Service Tax, etc.)nn Setting Up Insurance Policies for the Company and its Employees

TAX AND INWARD INVESTMENT ADVISORY DIRECT TAXESnn Corporate Tax Advisorynn International Tax Structuringnn Transfer Pricingnn Tax on Transactionsnn Withholding Tax Compliancesnn Personal Tax Advisory for Expatsnn Tax Assessment & Appealsnn Offshore Tax Structuring

INDIRECT TAXESnn Customs Dutiesnn Value Added Taxesnn Excise Dutiesnn Service and Sales Taxes

TAXnn Strategic Tax Planningnn Appeals and Tax Litigation Processesnn Obtaining Advance Rulingsnn Preparation of Tax Returns

IDENTIFICATION AND DUE DILIGENCE OF PARTNERS, DISTRIBUTORS AND SUPPLIERSSannam S4 assists its clients with identifying local distributors, suppliers and partners. Our activity includes creating a list which is shortened by detailed research, resulting in visiting numerous companies directly to gain a strong insight into how they operate, their appropriateness as a partner and the credibility of their business in the market, to ensure our clients enter relationships that are sustainable and beneficial to their Indian market objectives.

nn Financial, Legal and Reputational Due Diligencenn Mergers & Acquisitionsnn Risk Analysis


CULTURAL AWARENESS TRAININGSannam S4 provides cultural awareness training and consultancy to an impressive range of leading-edge clients. We offer tailor-made, innovative solutions that are designed to help our clients maximize their effectiveness in the global market place. We work closely with clients to develop solutions-based training programs which are closely aligned to the strategic goals of their business. Our in-depth knowledge of international business culture and its direct impact on global organisations can help clients focus attention on areas of greatest need and, therefore, most effectively target training resources.

Course Topics Include:nn Leading a Team in India - Management Style and Expectationsnn Understanding and Working with Indian Business Culturenn Developing Responsiveness and Accountabilitynn Understanding the Impact of Hierarchynn The Importance of Developing Personal Relationships When Doing Business in Indiann Eliminating Communication Barriers in International Teams

STAFF RECRUITMENT AND HR ADVISORY

RECRUITMENTSannam S4 provides a range of services to support your staffing requirements. These include providing temporary employment to long term hosted employment structures and managing the local HR, compliance, payroll and expense management of these local staff.

nn Search, interview, shortlist and appoint candidatesnn Provide benchmarking reports on salary packages

and benefits

HR ADVISORY SERVICESSannam S4 HR Advisory takes care of your HR concerns while you focus on your core business functions in the new market. Sannam S4 offers for new entrants in the Indian market, a professional and highly efficient HR support to extend your capabilities and simplifying the process with a ‘hands on’ approach.

Key Features of HR Advisory:nn HR Solutionsnn Consulting on Employment Laws & Statutory Labour Compliancenn HR Policies and Employee Handbooksnn HR Operations - Benefits Administrationnn Employee Relations & Employee Productivity Managementnn Best Practice Benchmarking – Compensation & Benefitsnn Outsourced Payroll/Employment Leasing Servicesnn Management of on going HR & employment formalitiesnn Provide employment contracts, handbooks, policies and guidelinesnn Ensure compliance on the legalities of an employment entry/exit processnn Establish privacy and data protection procedures in line with clients global policiesnn Advise client on all other local HR related matters and local nuancesnn Setting up health and travel insurance policies for employees


INDIA

MARKET RESEARCH AND VALIDATIONShould your business not yet be ready to establish a full time presence in India, Sannam S4 offers a range of consulting and project management services through market research and validation where you provide us with your objectives and we deliver them on your behalf.

MARKET RESEARCHFinding the right supplier, partner, distributor, manufacturer or customer base is crucial to the success of achieving your business goals in India. Sannam S4 helps through proactive, on-the-ground support by:nn Creating a shortlist of recommended partners/customers/distributors etc. and advising on market

potential and viability, local pricing analysis and trendsnn Identifying new suppliers to reduce your costs and increase your competitive advantagenn Developing strong relationships with local suppliers/partners/distributors etc. on your behalf to ensure

objectives are met and quality standards are maintainednn Carrying out due diligence on suppliers/partners/distributors etc. to ensure they have good references,

are financially stable and do not present a risk to your company’s reputation in terms of product/service quality, lead times, or non-ethical practicesnn Undertake “mystery shopping” exercises to gain an independent view of a local company or service

MARKET ENTRY STRATEGYSannam S4 acts your dedicated local sales contact, identifying and pursuing sales opportunities by taking on the role of local sales executives on behalf of your company, regularly keeping you in touch. We maintain communication with parties on either side of a sales lead / transaction ensuring timely follow up until objectives are achieved, or on an on going basis to maintain relationships, providing frank and honest feedback on opportunities.

DEVELOP AND VERIFY LOCAL BUSINESS PLANEnabling your company to understand the real market opportunity and the genuine costs of doing business and what it would take to succeed.

SERVICED OFFICE FACILITIESSannam S4 has offices in New Delhi, Mumbai, Bangalore, and Chennai, equipped specifically to allow multiple businesses to co-locate in their early stages of life in India, with immediate access to a back office team of accounting, payroll, marketing, HR and other administrative support staff. Sannam S4 provides professionally managed infrastructure and back office support ensuring our clients can focus their efforts on accomplishing their goals in India.


SANNAM S4 IN THE PRESSSANNAM S4 NEW DELHITel: +91 (0) 11 42 12 4100

MUMBAI Tel: +91 (0) 22 67 42 3211

BANGALORETel: +91 (0) 80 41 80 0936

CHENNAI Tel: +91 (0) 44 4221 8422

LONDON Tel: +44 (0) 203 3030025

BOSTON Tel: +1 617-285-0921

SAN FRANCISCO Tel: +1 415-513-0367

[email protected] www.linkedin.com/ company/571392 @sannams4_india

After months of deliberation, Kapadia and two other senior judges sided with the British firm.

The Supreme Court made it plain that the future of foreign direct investment in India could have been jeopardised if Vodafone had been forced to pay up. “Such imposition of tax amounts to capital punishment on capital investments,” the court said in its ruling.

Nishith Desai, from Nishith Desai Associates, a firm involved in the earlier rounds of Vodafone’s legal battle, said the judgment would restore investors’ faith in India.

“I think what politicians and bureaucrats have not been able to do, the court has been able to do; to bring back the confidence of investors in this country,” he said. “There is something called the rule of law, and our country stands for that.”

As a result of the verdict, the taxman may have to abandon similar actions against a slew of overseas companies, including British brewer SAB Miller and America’s AT&T.

The mind-boggling complexity of India’s bureaucracy also continues to put off potential investors, according to Adrian Mutton, whose Sannam S4 consultancy helps British businesses set up there.

“Companies are spending huge amounts of time, effort and money on decisions they think will materialise, and then they don’t,” said Mutton. A prime example was the government’s u-turn last month on its decision to allow foreign retailers, such as Tesco, to invest in India. The flip-flop painted a damning picture of an administration incapable of acting decisively.

Colao, who succeeded Arun Sarin at Vodafone in 2008, has long complained of Delhi’s high-handed approach to business. In addition to the tax case, the Italian has railed against the state’s desire to extract ever greater sums from both domestic and international mobile phone groups.

The battlefield was suitably August for a dispute that has pitted one of Britain’s most successful A year ago, he went so far as to threaten to halt further investment in India unless the authorities companies against the Indian state.stopped using spectrum as a vice to “squeeze money out of private capital”.

For four years the mobile phone giant had been locked in an acrimonious legal dispute with On Friday he struck a more conciliatory tone. As a “long-term investor in India” the company India’s taxman. At issue was not only several billion pounds but the very future of foreign had always had “faith in the Indian judicial system”.investment on the subcontinent.

Vodafone would “make significant investments” in its third-generation network and rural areas In the end it took little more than five minutes for SH Kapadia, chief justice of India, to deliver his “for the benefit of Indian consumers”.judgment on a case that has gripped the Indian business world.

So far, India has proved to be far less profitable than Vodafone had envisaged. Heavy tariff cuts Against the whirr of two-dozen ceiling fans, Kapadia dismissed a $2.9 billion (£1.9 billion) claim forced the company to write down the value of its Indian business by an eye- watering £2.3 against Vodafone, stemming from the firm’s $11 billion bid for a controlling stake in an Indian billion in 2010.mobile phone operator in 2007.

The landmark case had threatened to turn Vodafone’s Indian dream into a nightmare. The long-running dispute had also placed at risk tens of billions of pounds of foreign investment in the country.

“Companies are spending huge amounts of time, effort, and money on decisions they think will materialise, and then they don’t,” said Adrian Mutton, CEO of Sannam S4.

Business consultant Adrian Mutton says it takes courage for a foreign corporation to make a big-ticket investment in India given the uncertainties thrown up by capricious twists in government policy. “You have got to be a pretty brave CEO to gamble on a major investment decision in India, especially if you think that decision may be overturned,” said Mutton, who heads India-based Sannam S4, a consultancy which helps firms enter India.

Adrian Mutton, CEO, Sannam S4 Consulting, which, among other services, assists British universities in starting India operations, said, “UK higher education remains extremely sought after despite less favourable media reports surrounding student visa applications. The truth is that for genuine student applications and qualifying graduates, there are no issues with UK visas. We see increased activity between UK higher education and further education colleges and Indian institutions and corporates, Sannam S4 being at the heart of this matchmaking.”

Adrian Mutton, CEO of Sannam S4, says that, “If you see the efforts that other foreign companies and foreign governments are putting into this market now, their efforts are new, different and innovative. Hillary Clinton plans to put a large number of American graduates into Indian companies to gain experience... You have the Finnish, the Koreans, and Taiwainese offering free scholarships to very large numbers of students, so when they return to India, they’re used to the technology from those countries.”

INDIA

market entry and business development support india · sannam s4 is a specialist, single window...

Documents