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Why Chennai is the best for doing business

In this guide we let you know the reasons Chennai is one of the best places for  startups

Chennai is formally known as Madras is the capital of Tamil Nadu, India which is situated on the Coromandel Coast of Bay of Bengal. Chennai is one of the most visited cities in India by foreign tourists. According to The Quality of Living Survey Chennai is the safest city in India. Chennai is one of the top 10 cities in India which have highest literacy rate. This one of the reason people wants to set up their companies in Chennai. Chennai is also known as the Detroit of India because more than one-third of India’s automobile industry is based in the Chennai. Software Technology Parks of India (STPI) provide support with Company Registration in Chennai for emerging entrepreneurs. In last few years Chennai has become one of the preferred destinations for IT companies such as Infosys, TCS, Wipro and Cognizant and MNCs. Chennai 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 Chennai is the Best Place for Doing Business.

Why Chennai is the best for the startups in India
Why Chennai is the best for the startups in India

1. SEZ in Chennai-

Special Economic Zone (SEZ) is one of the biggest reason people wants to start the business in Chennai. SEZ is an area where the business and trade laws are different from the rest of the country. SEZs in India 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 Development

To 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 18 are in Chennai which makes the Chennai a preferred destination for start-ups or business setup.

2. Infrastructure -

Chennai has an excellent infrastructure facility, and continuous developments are happening around the city. A good infrastructure is a basic requirement to start the business at any place and Chennai fulfill that requirement.

3. IT talent pool -

Chennai has become the hub for IT sector because there is a plenty of talented IT professionals. IT talent is also shifting to Chennai from other parts of the country. Nowadays businesses have the increasing requirement of IT talent.

4. Government Support -

The State Government has taken new initiatives to support the growth of the industry in Chennai. Tamil Nadu Government has founded many special areas to help businesses. The procedure to set up the business and licensing is also simplified.

5. Literacy Rate -

Chennai has the literacy rate of 81.3%, so it becomes very easy to get talented and skilled employees. There are many premier instructions are spread across the state which produces vast talent pool every year.

6. Salary -

The average wages paid to employees is 10-30% lesser than other metro cities such as Bangalore, Hyderabad, Pune or Delhi NCR because the cost of living in Chennai is nearly 20% less than other cities.

7. Transportation-

Chennai is well connected with other cities via road, rail, and airways. Chennai also has an international airport and a seaport.

8. Electricity Supply –

Chennai has negligible issues related to the power cut. Chennai has the power supply of 99.7% for commercial as well as residential customers. This is an added advantage to start the business in Chennai.

All these things make Chennai a land of opportunities for entrepreneurs. After considering all these reasons we can say Chennai has a tremendous potential to expand.


This is a YourStory community post, written by one of our readers.The images and content in this post belong to their respective owners. If you feel that any content posted here is a violation of your copyright, please write to us at mystory@yourstory.com and we will take it down. There has been no commercial exchange by YourStory for the publication of this article.
I am dev patel from Jaipur. Legal Expert and Founder at MyOnlineCA (a Legal Tech Company) which made legal registration at your fingertips on simplified DIY Forms From Register a Company/Startup in India to handling legal documentation.

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