[stephenhacking]

For starters, you'll need to start doing the following:

1. Register a Pvt. Ltd. to do business <-- hard to do unless you're Indian or someone who's Indian on board 2. Register with the RBI and get stamped from them every time you remit money from outside India <-- painful 3. Not be able to use a majority of payment gateways that collect payments in foreign currency if you want to directly tie it to your Indian co. 4. Process ESI if you're paying under $400/mo 5. Process PF if you're paying over $400/mo and have more than 10 employees

It's paperwork, paperwork and more paperwork!

As for being late to the party, cost of labor has gone up at least 4 times in the past 10 years and it's going to probably go up another 3 times in the next five years. Smart people are no longer that easy to find and very few folks actually are interested in working for startups. Cost of infrastructure, electricity, broadband, everything is higher in Bangalore and more at par with Austin or Boston tbh.