The capital of Tamil Nadu has been a centre of trade and business since the time of British Raj. Chennai has managed to continue this growth over the years, and today it ranks within the top 10 places in India as per the metrics of ease of doing business.

Also, availing a business loan in Chennai is considerably easy owing to the several NBFCs operating here. 

Moreover, you should know the reasons why Chennai is considered an ideal location for businessmen to set-up and grow their business.

Reasons why Chennai is an ideal place for business

  • Special Economic Zone (SEZ)

Special Economic Zones are areas where trade and business laws are different compared to other areas of the state. These zones have been created primarily to provide a hassle-free and competitive climate to do business. 

The primary objectives of SEZ are –

  1. Increasing trade.
  2. Ensuring generations of further economic activities.
  3. Encouraging domestic and foreign investments.
  4. Creating employment.
  5. Exemptions from certain taxes levied by state and central government. You should know about self-employment tax in India before starting a business. 
  6. Exemption from ‘minimum alternate tax’ as per the Section 115JB of the Income Tax Act.
  7. Total exemption from income tax for business in SEZ areas under the Section 10AA of the IT ACT, for the first five years. Furthermore, a 50% exemption for the next 5 years and 50% on the reinvested export profits for the following five years. 
  8. Duty-free import or domestic procurement of goods for developing and maintaining SEZ units.
  9. No maturity restriction is imposed on external financial borrowing by businesses in SEZ areas up to $500 million in a financial year. However, this must be done via recognised financial institutions.
  10. Last but not least, single-window clearance for state and central government approvals.

There are 18 such special economic zones in and around Chennai, which makes it a preferred destination for businessmen to invest.

  • Exceptional infrastructure

Good infrastructure is fundamental in attracting investors from around the world. Keeping this in mind, the state government is investing in improving the infrastructure of the city as well as its surroundings.

  • Additional support

Apart from easy clearance and good infrastructure, a business needs other additional supports such as electricity, water, etc. to grow. 

Chennai has improved in terms of electricity in the past decade. Government’s efforts have lowered the power-cut rate all over Tamil Nadu. Thus, the uninterrupted power supply is an advantage of starting a business here.

  • Well-renowned IT sector

The IT sector of Chennai is well-known around the world for its efficiency and the talent it possesses. Therefore, the IT requirement of a business can be fulfilled locally.

  • Lower cost of Living

Compared to other metro cities of India like Bangalore, Pune, Mumbai, the cost of living in Chennai is lower by around 15%-20%. 

  • Remarkable transportation facilities

Chennai is well-connected to the rest of the country via rail, road and airways. It has an international airport and a well-known seaport. Moreover, the internal transportation system in Chennai is also exceptional.

  • Easy availability of financing 

If you are planning to set-up a business or grow your existing one in Chennai, you can do so by availing a business loan in Chennai. There are government business loan schemes to financially support companies

Private financial institutions like Bajaj Finserv also offers such loans favourable terms. Once you fulfil the required business loan eligibility criteria, you can avail up to Rs.30 lakh. Moreover, competitive interest and flexible tenor are some added features here.

Furthermore, the company also brings pre-approved offers that make the loan application process hassle-free and less time-consuming. These offers are also available on a list of financial products like personal loans, business loans, etc.

The above-mentioned pointers are some of the significant reasons why Chennai has managed to attract investors from around the globe. Additionally, a robust law enforcement system of this city has provided the needed security. 

Therefore, if you have plans to set-up an organisation here, you can easily do so with a business loan in Chennai.