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Best Indian cities for setting up a business-Bangalore

best indian cities for setting up a business bangalore

Best Indian cities for setting up a business-Bangalore

With a population of over 9 million and with many of them being young entrepreneurs and tech geeks, it’s no surprise that Bengaluru is one of the top Indian destinations to establish a business. It was and still is considered the Silicon Valley of India. However, its roots in science and tech date to 1909 when the Indian Institute of Science (IISc), a public university for scientific research and higher education, was established there.

The city attracts so much talent and innovative minds these days that it’s almost inevitable for them to flourish in the form of pioneering businesses and start-ups. The massive talent pool has also attracted the best multinational corporations (MNCs) to setup operations in Bengaluru. Companies like Amazon, Microsoft, IBM, Apple and Citigroup are just some of the MNCs that have established operations in Bengaluru. According to a study by Zinnov Consulting, as much as 48%, or 155,000, of the MNC R&D workforce in India is now based in Bengaluru.

Working for an established MNC is one thing but Bengaluru is now also the start-up capital of India. Start-ups, especially those specialising in technology find the atmosphere and entrepreneurial spirit in Bengaluru to be very conducive when establishing an idea or business. The access to resources and such a substantial tech knowledge base only further enhances the city’s allure. Anand Subramaniam, program manager at Zinnov had this to say regarding India, "New technologies like big data & analytics, mobility UIUX (user interface user experience), machine learning, artificial intelligence and cloud are really disruptive, and the need to do R&D in India in these areas will rise sharply. No other country, outside the US, can provide the scale of engineers that India can."

Pros of setting up a business in Bengaluru:

  • One of the easiest Indian cities to get a construction permit
  • Vast knowledge and resources for tech development
  • An already established route for start-ups and new businesses to take advantage of
  • Excellent city to network and build contacts for current and future endeavours


  • It can take between 40-90 days to start a business
  • Infrastructure (primarily roads and power) are outdated
  • Pollution and urban sprawl is on the rise

Local and foreign bodies are understanding the magnitude of new and start-up businesses coming into Bengaluru and are looking for ways to support and capitalize on this. The UK Indian Business Council (UKIBC) has made substantial investments in Bengaluru, establishing a facility with a variety of support services to help new businesses ease into the city. A collaboration between the Karnataka Information Technology Venture Capital Fund (KITVEN Fund) and other foreign bodies have also been setup to take advantage of the Bengaluru start-up scene. The intention being to support SME businesses and help them mature to reach their full potential.

Even with the poor infrastructure and the confusing ecosystem, Bengaluru is still considered one of the best locations to establish a business in India. This is even more prevalent for tech companies wanting to establish a base in India.

With government initiatives such as Make in India and Startup India the future looks bright for cities like Bengaluru. If you enjoyed this article you may also like our previous article on Ahmedabad being a great city to setup a business.

At QX Corporate Advisors we provide customised services for business entity setup, approvals, legislative registrations and all of their post registration compliances. If you’ve been thinking about entering the Indian market or have any questions about India market entry strategy email us on or call us on 0845 838 2672. 

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