The fintech sector is thriving in India, as it has the highest return on investment at a global level. Those who are taking into consideration to register a company in India in the financial techology (fintech) industry must know that the most prominent activity carried out here is the digital payment sub-sector, but numerous other types of activities provide relevant business opportunities. Our team of consultants in company formation in India can advise on the regulatory framework available for the fintech sector.
Governmental support for Indian fintech activities
The fintech industry is highly sustained by the local government and companies can benefit from several programs that can help increase the operations of such businesses and our agents can advise businessmen on the requirements imposed when applying for a local funding program.
For example, investors can apply for the Startup India Program, created to assist in the following:
• simplification of the regulatory procedures;
• provide tax exemptions;
• introduce patent reforms;
• provide mentorship advice;
• apply for funding.
The characteristics of the Indian fintech sector
One of the most important fintech activities carried out by Indian companies refers to the creation of digital payments through various modern devices. Most of the payment transactions in India are still concluded in cash, which provides an opportunity for growth, especially when considering that the Indian citizens have an open approach to the adoption of alternative, modern, means of payment. It is estimated that at the level of 2020, this market will grow to $ 500 billion, which will represent 15% of the country’s gross domestic product (GDP).
At the moment, the top fintech operations developed on this market are concluded through the following:
• peer to peer transfer applications;
• mobile points of sale;
• wallets.
Banking technology represents another relevant fintech activity in India and companies located here provide services for the next types of operations:
• software solutions;
• fraud management;
• risk management.
In 2016, the fintech sector was one of the top economic activities which received funding in India, and numerous businessmen concluded investments in this industry. The total level of funding and investments accounted for $ 270 million.
Foreign businessmen are invited to contact our team of specialists in company registration in India for tailored advice on how to start a fintech business.