Business in Andhra Pradesh

Can I start business in Andhra


From day-one, Chief Minister Andhra Pradesh has been consistently wooing corporates and foreign investors to set up their operations in the state by rolling out a long list of incentives, fiscal subsidies, tax exemptions and above all, a single window clearance desk for efficient process of setting up new Greenfield industries.

In fact, setting up an industry in Andhra Pradesh is simple, hassles-free and straightforward.

The Commissionerate of Industries guides the investors through a step by step process for setting up new ventures in Andhra Pradesh.

Andhra is all for proactive support for all sorts of capital investment -- both foreign direct (FDI) and domestic capital - in manufacturing, mining and infrastructure sectors.

The Commissionerate offers one stop service encompassing a number of services that are essential to set up new ventures, firms or enterprises in the state.

The complete package includes guidance on choosing the best possible location for doing business by taking into account the availability of resources like labour, transport and other social facilities necessary for an enterprise.

Ready help is also offered to obtain statutory clearances and approvals under various Central, state laws before starting an enterprise.


As a foreign company, one can open operations for a liaison office, branch unit and project execution.

If it is an Indian company, it can be joint venture with another partner or a 100% subsidiary of an existing unit. The Indian company can either be a private limited or a public limited one.

Here is sketch of early approvals required to start a business in Andhra:

  1. First obtain the name approval from the registrar of companies (RoC).
  2. Submission of memorandum and articles of association to RoC for its approval.
  3. Getting the certificate of incorporation from the RoC.
  4. Getting the certificate of commencement of business for public limited companies.

If the business has foreign equity investment, then it has to get either approval of Reserve Bank for automatic route or the Foreign Investment Promotion Board (FIPB) depending on the equity percentage being contributed by the foreign partner(s).

5-year-industrial policy


Chief minister Chandrababu Naidu has unbundled a slew of incentives and tax benefits to investors willing to come and start business in the state.

Industrial projects with a capital outlay of Rs 500 crore or the ones which create direct employment to 2,000 people would be accorded “mega industry” status and will be considered for special package of incentives.

One of the major tax incentives for industrial units is reimbursement of 100 per cent VAT (value-added tax) or GST (goods and services tax) for micro and small units for five years, 75 per cent for medium and 50 per cent for large industries for seven years or up to the realisation of 100 per cent fixed capital investment, whichever is earlier.

Other incentives include 100 per cent exemption of stamp duty and transfer duty on purchase of land, mortgages and hypothecation and 24/7 power supply with a power cost reimbursement at Re 1 per unit for five years.

The government would also provide external infrastructure on a case-to-case basis. SC, ST and women entrepreneurs have been are provided with extra incentives.

Single Desk Policy

Aiming to usher in an investor-friendly climate, this policy would extend all clearances within 21 working days from the date of receipt of application and thus ensure the highest ease of doing business in the state.

For better functioning of the single desk system, empowered panels and a top bureau have been entrusted with the task of monitoring the implementation process which is designed with spot approvals, deemed approvals, online application filing and personal guidance among other features.