Madurai is known as Cultural capital of Tamil Nadu, India which is situated on the Southern part of TamilNadu. Madurai is one of the most visited cities in India by foreign tourists. According to The Quality of Living Survey Madurai is the safest city in India. Madurai is one of the top 10 cities in South India which have highest literacy rate. This one of the reason people wants to set up their companies in Madurai.
Madurai is also known as the Athens of East because more than one-third of India’s Historical culture is based in the Madurai. Software Technology Parks of India (STPI) provide support with Company Registration in Madurai for emerging entrepreneurs.
In last few years Madurai has become one of the preferred destinations for IT companies such as Honeywell, HCL and MNCs. Madurai has the perfect combination of professionals and talent base for the business to flourish.
Today in this article I am going to tell you in detail Why Madurai is one of the best places for starting up your business.
1. SEZ in Madurai
Special Economic Zone (SEZ) is one of the biggest reasons people wants to start the businesses in Madurai. SEZs are typically areas where the business and trade laws are different from the rest of the country and were introduced to provide competitive and hassle free climate for export promotion in India.
The SEZ Act drastically simplified the procedure to start the business. It provides a single window clearance on matters related to State and Central Government. The primary objectives of SEZs are to
- Increase Trade
- Promotion of Export of Goods and services
- Generation of additional economic activities
- Promotion of domestic and foreign Investment
- Employment creation
- Infrastructure DevelopmentTo promote the businesses to set up in SEZ special financial policies are introduced. These policies are regarding investing, trading, taxation, custom and labor regulations. Here are some of the advantages to start the businesses in SEZ
- Exemption from Central Sales Tax
- Exemption from Service Tax
- Exemption from State Sales Tax
- Exemption from minimum alternate tax under section 115JB of the Income Tax Act
- 100% Income Tax Exemption for SEZ units under Section 10AA of the Income Tax Act for first five years, 50% for the next five years after that 50% of the reinvested export profit for next five years.
- Duty-free import / domestic procurement of goods for development, operation and maintenance of SEZ units.
- Single window clearance for Central and State level approvals.
- External commercial borrowing by SEZ units up to USD500 million in a year without any maturity restriction through recognized banking channel.
There are 55 operational SEZ in Tamil Nadu of which 3-4 are in Madurai which makes the Madurai a preferred destination for start-ups or business setup.
Madurai has an moderate infrastructure facility, with incubators and accelerators involved in continuous development projects around the city. A good infrastructure is a basic requirement to start the business at any place and Madurai fulfill that requirement.
3. IT talent pool
Madurai has become the hub for IT Product sector because there is a plenty of talented IT professionals. IT talent is also shifting back to Madurai from other parts of the country. Nowadays businesses have the increasing requirement of IT talent.
Both the government and private sectors have a few new initiatives under their wings to promote the growth of the industry in Madurai. The procedure to set up the business and licensing is also simplified.
5. Literacy Rate
Madurai has the literacy rate of 80.5%, so it becomes very easy to get talented and skilled employees. There are many premier institutions that are spread across the state which produces vast number of resources every year.
The average wages paid to employees is approximately lesser than other metro cities such as Chennai,Bangalore, Hyderabad, Pune or Delhi NCR because the cost of living in Madurai is nearly 40%-50% less than other cities.
Madurai is well connected both internally and externally. The city is connected with other cities via road, rail, and airways. Madurai also has an international airport.
8. Electricity Supply
Madurai has negligible issues related to the power cut. Madurai has the power supply of 99.5% for commercial as well as residential customers. This is an added advantage to start the business in Madurai .
All these things make Madurai land of opportunities for entrepreneurs. After considering all these reasons we can say Madurai has a tremendous potential to expand.
9. Co-Work Culture
Madurai has an moderate community based co-work space with good infrastructure facility. A good Supportive community is a basic requirement to start the business at any place and Madurai fulfill that requirement.
10. Farshore/Offshore/Extended Development Centers