When expanding your business to another country, there are a plethora of different factors you have to consider, starting with why you are moving there in the first place. Do you want to capture the local market, harness local talent or some natural resource, take advantage of the local infrastructure or geographic location, or you might simply be looking for affordable labor? These questions and the underlying factors can have significant sway over your expansion decision.

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Whether you own a small-scale startup or a multi-million dollar firm, compliance with human resource policies is essential. The HR department establishes the procedures, codes of conduct, and other rules and regulations that the employees have to adhere to.

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One of the world’s fastest-growing economies and one of the most populous countries in the world, India is a great place to expand your business for one main reason: access to affordable and competent talent. With 1.4 billion people, India is just behind China when it comes to population, and unlike China which is a highly concentrated “domestic-business-focused” market, India is relatively more open.

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India is the world’s sixth-largest economy, and has an annual average GDP growth rate ranging from 6% to 7% since the start of the 21st century. Setting up a business in India can allow you to take advantage of a large customer base, which is likely to increase your business’ profitability.

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In December 2020, the Narendra Modi-led government made some significant changes to the Indian Labor Code.

Forty of the old central laws were replaced with four major labor codes that drew attention to wages of employees, industrial relations, health and safety hazards, as well as social security. Combined, these will help modernize India’s labor laws, revolutionizing the business environment.

Below are the changes made to India’s labor code:

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