The Middle East, India and I

How to set-up your operation in India?

Opening a business in India usually involves navigating through mountains of red tape. Here is a look at some key approvals required to start a business in India:

AUTOMATIC/FIPB ROUTE

The Reserve Bank of India gives an automatic approval if the proposed foreign investment complies with caps on foreign holdings, which vary from sector to sector. There are some sectors, such as retail, in which foreign firms must also get the approval from the Foreign Investment Promotion Board, made up of senior government officials and headed by the finance minister.

REGISTERING A COMPANY

Setting up a company in India requires permission from the regional registrar of companies, and more than 12 approvals are required if a foreign firm wants to own land and construct its own premises.

REGULATORY BODIES

The Directorate General of Foreign Trade must approve any plans to import or export. Software Technologies Parks of India registration is required to run a software or an outsourcing firm as it entails tax and import benefits.

SEBI's approval is required for financial firms, while Insurance Regulatory and Development Authority must approve insurance ventures.

TAX AUTHORITIES

A company has to register with tax authorities as it may be liable for a complex web of state and federal taxes.

LABOUR WELFARE BODIES

Approvals from the Employees' Provident Fund Organisation, the Employees' State Insurance Corporation for medical insurance and the RBI to employ

ENFORCING CONTRACTS

India ranks 177th out of 178 countries in the World Bank-International Finance Corp "Doing Business 2008". Enforcing contracts takes on average 46 procedures, 1,420 days and takes up 39.6 per cent of the cost of claim.

CLOSING BUSINESS

The report ranks India 137th and says it takes nearly 10 years to close a business.

State Bank of India competing with China ICBC

China and India share a lot of things in common large country, large population, fast growing market but also the two biggest banks with most branches.

China ICBC ranks first with more than 12,000 branches across the Middle Kingdom and now State Bank o India just reached the 10,000 mark.

SBI opened their 10,000th branch in Puduvayal district of Tamil Nadu.

Congrats to them! I just hope their service can improve.

Is Dubai a labor ghetto?

I went through an interesting article yesterday from Asia Sentinel claiming Dubai is a labor ghetto. I have a more balanced view about our Foreign workers in Dubai. Dubai and neighbouring gulf states are growing at very rapid pace, especially the construction industry and hundreds of thousands of workers coming from India, Pakistan, Nepal, Bangladesh come everyday to build those majestic structures. Working there is harsh but working in India and the countries mentioned above is even worse it is why they come to Dubai and the neighbouring gulf states to find work or have better salaries. Don't get me wrong! The situation is not perfect far from it and the Dubai government has forced several times Real Estate developers to pay quickly to workers their salaries, their overtime payment and allowance. The Dubai government has even taken steps to build house infrastructure for these expats from the sub-continent. Dubai is also on the verge of passing new labor laws more favorable to foreign employees. One law I would like to see is the possibility to switch from employer to employer in Dubai without going out from the country and wait for a period of 6 months how it is now necessary.

Who knew Tata Motors in the Western world until yesterday?

My title may seem arrogant but it is not. I am currently in France for business and family purposes, so during my free time I zap cable TV channels from around the world or surf on internet for the latest news: and what are the news for January 10th, 2008: Tata Motors is selling the cheapest car in the world at 100,000 rupees.

All newspapers or TV stations around the world talk about it. You can find news about it China, Russia, Japan, France, South Africa, Middle East. So, now Tata Motors is on the world map even  if nobody  has seen in Europe, Africa, the rest of Asia or North America a Tata car, now they know the Tata Nano.

Now Welcome Renault and Bajaj on the India frenzy for low-cost cars

India's second-biggest motorbike maker Bajaj Auto said January 8th, 2007 it aims to bring out a cheap, highly fuel-efficient small car within four years in a tie-up probably with French carmaker Renault.

The vehicle would feature twice the fuel economy of current cars but would cost more than the 2,500 dollar car -- the world's cheapest -- that Indian truckmaker Tata Motors will unveil on January 10th, 2007.

Bajaj managing director Rajiv Bajaj didn't name a price for the planned two-cylinder-engine car but said it would be "reasonable" and offer an "unbeatable total cost of operation."

Renault's chief executive, my beloved Carlos Ghosn has said the French firm is looking to produce a 3,000 dollar car in India by 2010.

A partnership feasibility study on the small-car project with Renault is expected to be finished by next month according to Bajaj Auto.

Domestic and international carmakers are racing to corner India's small-car market, which accounts for over two-thirds of domestic sales in the country of 1.1 billion people.

Japan's Toyota Motor Corp. and Honda Motor Corp., among other global carmakers, also say they are mulling building low-cost cars as India's population becomes more affluent and trades up from motorcycles. Small car sales are expected to nearly double to around two million units by 2010.

Top Indian environmentalist Rajendra Pachauri, the chairman of the Intergovernmental Panel on Climate Change who was recently awarded the Nobel Prize with former US vice-president Al Gore, has said he has "nightmares" about the potential impact of the new "cheapmobiles" running on Indian streets.

The Renault-Nissan car could be powered by both diesel and petrol and feature a "unique" transmission system midway between a manual and automatic gear shift.

Bajaj Auto would spearhead the alliance in what experts call a shift from bike to car engineering.

Bajaj said a new plant at Chakan near Pune in western India would likely produce the car. The plant will also make a light commercial vehicle that Bajaj plans to launch in early 2009.

The Indian company wanted to gain expertise from Renault "on what it takes to produce cars on a large scale consistently" besides acquiring global market access, Bajaj said.

Indian firms need such global tie-ups to make technological leaps and save years of development time. China took the same path in the 80's and 90's and is now developing its own car brands like Geely, Brilliance, Dongfeng or SAIC.

Tagged: 5 things you didn't know about me...

I really don't use this blog to talk about myself but currently there is a tag (here) about it. The new year just started so it would be nice to talk about something different and guess what? it's about me. So let's write!

1- I gained 30 kgs over a period of 3 years. Yes, you read well not 30 pounds or 30 jin, it is 30 kgs. The reason: too much bad stress, frustration but guess what I have decided to do something about it in 2007. Let's see how far I can go!

2- I am 35 and I am not married, not even attached to a single person. No, I am not gay, and no I haven't a bad temper that makes impossible to live with. I just finished a two-year relationship after a five-year one. So I am quite stable but I think I can only fulfill myself when I am single don't know why. Any answer guys?

3- I come from Nice (here) (pronounced Nissss) France: la cote d'Azur! So like many people around me, you ask yourself what the hell I decided to come to China to work. Well, Nice is a little paradise on earth but when you are young and want to discover something new and have thrilling experiences I don't think it is the place!

4- I have lost my mum and dad at an early young age. My father died when I was 23 from a lung cancer; my mother didn't die actually but she cut family ties in 1997. Since then, I have no news of her.

5- I am never satisfied about myself; I always want more. I performed better at school than average, got higher diplomas, speak many languages and successful experience but I don't know why, I see myself as somebody with little value compared to others. Any answer or help on that?

Bahrain - A trip to Al Hidd Industrial Area

Al Hidd Industrial Area consists of a large number of factories. The Industrial zone is close to the Bahrain International Airport. This zone is relatively small compared to the Economic Trade Zones in Dubai or in China. It would be interesting to know what the Bahraini government will do to energize the area. Currently, you mainly see a desalinization plant, a power plant and shipyard.

Al Khobar

Al Khobar is notorious in the Western world for the massacre by Al Qaeda of 22 foreigners in May 29th, 2004. Al khobar is located at the frontier of Saudi Arabia and the island of Bahrain. I frequently visit this place for business purpose, meeting with my friend Tony Zghieb who works for the Arcan Group.

Al Khobar is close to Damman and its harbor where most of the goods I ship from China arrives. The place is mostly populated with saudis and non-westerners like Indian, Pakistanis, Nepalese, etc...Since the massacre, Westerners try to avoid to work there. Saudi Aramco is the first employer in the region.

I cannot avoid to go there during the day but Every night I go back to Bahrain where Tony also has an office.

The Kingdom of Bahrain

Bahrain is were I use to meet clients from Saudi Arabia when I have no time to apply for a visa at the Saudi embassy in Beijing. No need for visa on a short stay like in Dubai. So I mainly fly from Europe or China and make a stop-over in Dubai.

Bahrain is an island close to Saudi Arabia but not with all the stringent regulations of its neighbouring country. I enjoy life there even if it is not as good as in Dubai. Still Bahrain is an ope society where women can drive and not need to wear the hijjab. Oddly enough, the Saudis like to come to Al Manama during the week end to enjoy life. Here you can drink, party, watch movies at the cinema, there is a limited censorship.

Poverty in the Kingdom of Bahrain

Hala Gorani is a well-known anchor from CNN International; she every month anchors the "Inside the Middle East" show. Broadcasting from Al Manama, the capital of the Kingdom of Bahrain she covers the topic of poverty in the small island.
Bahrain is a rich oil and gas country but it is true you can see poverty around the corner. Most of the poor people are the migrant workers from India, Pakistan and Nepal. My friend Tony told me he can hire a Nepalese for as less as 150 USD to work on a construction site. He feels guilty about it but Nepalese seem  happy about their salary. They say their situation is better than in Nepal and safer. They can also send money to their home.