Manufacturing in the Indian sub-continent in 2023

IndiaBangladeshPakistanSri LankaNepal
Our ranking in order of preference12345
Summary at a glance
Total year 1 engagement costs (click link)? US$27,300US$13,710US$22,086US$11,550US$14,500
Total year 2 costs (incl. audit and tax)?US$18,770US$3,500US$12,450US$7,450US$3,400
Our Client must travel during the engagement?NoNoNoNoNo
Total engagement period?4 months4 months5 months4 months3 months
Corporation tax rate on net profits (click link)?22%25%29%24%25%
Average monthly labor salary?US$169US$95US$131US$108US$100
Average monthly office rental per sq m?US$45US$23US$29US$20US$17
Average monthly warehouse rental per sq m?US$10US$4US$6US$5US$2
National resident shareholder required?NoNoNoNoNo
English language proficiency % of population?11%18%49%10%46%
Incorporation requirements
How long to secure company registration number?2 months1 month3 months2 months1 month
Minimum number of shareholders?22213
Individual and corporate shareholders allowed?YesYesYesYesYes
Minimum number of directors?22211
Resident director (click link) required?YesNoNoNoNo
Resident company secretary (click link) required?NoNoYesYesNo
Minimum paid up share capital (US$)?1,65011,00011
Fast turnkey solution available (click link)?YesYesYesYesYes
Fastest time Healy Consultants set up company?1 month1 month2 months1 month1 month
Office premises required before co registration?NoNoNoNoNo
Virtual office address will suffice?YesYesYesYesYes
Special permit or license required?NoNoNoNoNo
Corporate director(s) allowed?NoNoNoNoNo
Can be wholly foreign owned?YesYesYesYesYes
Company registration process is?ComplexDifficult Very complexComplexComplex
Company documents in English?YesYesYesYesYes
Must translate shareholders and directors docs?NoNoNoNoNo
Efficiency of Government co registration office?PoorMediumPoorMediumMedium
Government incorporation fees (US$) payable?155300750500200
Public register of shareholders & directors?YesYesYesYesYes
Tax and accounting considerations
Corporate tax (%) payable (click link)?22%25%29%24%25%
GST or VAT (%) payable (click link)?14%15%0%12%13%
Average customs duty (%) on imports?15%15%10%10%10%
Average customs duty (%) on exports?00000
Withholding tax (%) on dividend distributions?020%15%10%5%
Withholding tax on distributions (%) to Singapore?015%13%10%5%
Annual financial statements required?YesYesYesYesYes
Statutory independent annual audit required?YesYesYesYesYes
Monthly accounting and tax reporting required?YesYesYesYesYes
Tax incentives for manufacturing start-ups?YesYesYesYesYes
Access to how many double tax treaties?943057397
Number of tax exempt free zones available?08000
Corporate bank account considerations
DBS IndiaSCB BangladeshSCB PakistanSCB Sri LankaSCB Nepal
How long to open corporate bank account?4 weeks5 weeks 5 weeks4 weeks5 weeks
Do I travel to open the bank account?NoNoYesYesYes
YesYesYesYesYes
Must have a local bank signatory?NoNoNoNoNo
Corporate ATM cards available?YesYesYesYesYes
Good internet banking available?YesYesYesYesYes
Funds transfer currency controlsYesYesYesYesYes
Bank rating by World Economic Forum?4.34.24.85.84.2
Ease of getting credit by WEF? score (1-7)3.62.42.62.92.3
Employment considerations
Average skilled labour monthly salary?US$254US$143US$197US$162US$150
Average unskilled labour monthly salary?US$127US$72US$104US$93US$80
Average pension/insurance benefits (%) of salary?180030
Minimum national salary?US$0US$19US$127US$50US$79
Mandatory labor unions?NoNoNoNoNo
Minimum notice to dismiss employees?1 month1 week1 month1 month1 month
Minimum redundancy indemnity?2 weeks4 weeks4 weeks10 weeks4 weeks
Quota ratio of foreign workers to local staff?No5%NoNoNo
How long to get work permit approved?3 months3 months4 months3 months2 months
Manufacturing considerations
Cost per unit of electricity (US$)?0.070.070.080.10.09
Rank for getting electricity (click link)440739322
Warehousing space rental (per sq. m.)?US$10US$4US$6US$5US$2
Ranking for transport infrastructure (click link) (1-7 best)4.52.73.44.12.4
Ranking for customs procedures out of 7 (click link)?3.93.53.743.2
Government incentives for startups?YesYesYesYesYes
Computer literacy (%) of population?7%8%10%25%10%
Internet connectivity rating?SatisfactoryPoorSatisfactorySatisfactoryPoor
Global business efficiency index (click link)?7110312973102
Preferred manufacturing city?MumbaiDhakaKarachiColomboKathmandu
Proximity of sea port in kilometers?23279164927
Proximity of airport in kilometers?8817164
Proximity of rail in kilometers?2422222
Literacy % of population (click link)?7162589364
Local purchasing power in USD (GDP per capita)1,5981,0931,3343,631697
Local market size (in millions of people) 1,295m159m185m21m28m
Average annual inflation rate (%)?67738
Average unemployment rate (%)?44543
Most common industry in the country?SoftwareTextilesTextilesProduct ProcessingTourism
Ease of doing business index (click link)14217312899108
Country rating (click link) BBB-BB-B-B+N/A
Most common import into the country?Crude OilPetroleumFoodTextile fabricsPetroleum
Most common export from the country?SoftwareTextilesLinensTextileCarpets

Contact us

For additional information on our manufacturing in the Indian sub-continent services, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi