Foreign Entities
Our services surpass borders and expectations.
Get Help on International Finance Matter
Financial complexity skyrockets the moment your business steps foot beyond national borders. Transnational trade, expatriates, foreign exchange, foreign taxes are burdens that come with tapping into foreign markets. We’ve been well known to curb such burdens and make them seem like minor inconveniences for our clients. See how we can help you in making international business seem like a breeze.
How to setup a business in India?
Setting up business in India is made easy choosing us although business needs to be enrolled under various statutes. Thus we provide the single window service by ensuring your business enrolment with various government agencies in India. Foreign entities can be set up in India in any of the following formats.
- Private Ltd Company
- LLP (Limited Liability Partnership
- Liaison Office
- Project office (PO) / Branch Office (BO).
Strategy Design and Registration Process
As a company entering into other markets should be planned in advance and the entry strategies for different markets might differ. We help you to make the entry strategies for the Indian Market. The Foreign company planning to set up business operations has options of Entry as Foreign company or as an Indian Company. Having set up the business in India you need to ensure the compliances under various statutes which we will help you manoeuvre till you reach a size to afford independent finance head.
Assistance with Local Laws and Compliances
Whether you’re incorporated in India or are dealing with relevant mandates and regulations here, our team at MSA can closely work with you to ensure that all necessary records and documentation under these laws are being maintained. Allow your management to focus on your operations over the monotonous compliances.
Transfer Pricing
The cross border transactions between associated enterprises are required to be executed at arm’s length price. Our expertise on international transactions would help you to prepare detailed documentation as required by the regulatory and guide you in advance on pricing module also liason with tax authorities as and when required.
Taxation for Expatriates
Your expatriates working in India are liable for taxation under local tax laws. We offer to assist you throughout the process of determining residential statuses, ascertaining taxable income across home and host countries, assessing exemptions and helping the expatriates keep up with the compliance requirements here.
Transaction Advisory
Win every transaction with the help of our transaction specialists. With our team’s knowhow of international transactions, we can help you nail every large transaction safely and to your benefit.
Strategy Design and Registration Process
As a company entering into other markets should be planned in advance and the entry strategies for different markets might differ. We help you to make the entry strategies for the Indian Market. The Foreign company planning to set up business operations has options of Entry as Foreign company or as an Indian Company. Having set up the business in India you need to ensure the compliances under various statutes which we will help you manoeuvre till you reach a size to afford independent finance head.
Assistance with Local Laws and Compliances
Whether you’re incorporated in India or are dealing with relevant mandates and regulations here, our team at MSA can closely work with you to ensure that all necessary records and documentation under these laws are being maintained. Allow your management to focus on your operations over the monotonous compliances.
Transfer Pricing
The cross border transactions between associated enterprises are required to be executed at arm's length price. Our expertise on international transactions would help you to prepare detailed documentation as required by the regulatory and guide you in advance on pricing module also liason with tax authorities as and when required.
Taxation for Expatriates
Your expatriates working in India are liable for taxation under local tax laws. We offer to assist you throughout the process of determining residential statuses, ascertaining taxable income across home and host countries, assessing exemptions and helping the expatriates keep up with the compliance requirements here.
Transaction Advisory
Win every transaction with the help of our transaction specialists. With our team’s knowhow of international transactions, we can help you nail every large transaction safely and to your benefit.
COMPARATIVE ANALYSIS : MARKET ENTRY ANALYSIS FOR FOREIGN ENTITIES
| Particulars | Joint Ventures | Subsidiary | Liaison Office | Project Office (PO)/ Branch Office (BO) | Limited Liability Partnership (LLP) |
|---|---|---|---|---|---|
| Legal status | Independent status | Independent status | Represents the parent company | Extended arm of the parent PO is generally set-up for specific projects, whereas a BO is set-up for carrying activities in the course of business | Independent status |
| Approval for commencement | JV can be set-up with the approval of MCA and RBI if it is formed as LLP or Company, however if it is formed as unincorporated entity only respective governing authority and RBI’s permission shall be required. | Company can be set-up subject to Foreign Direct Investment guidelines. The best part of this option shall be the Company can be Incorporated & Approval from RBI for FDI can be obtained after receiving the funds. | Requires specific approval from RBI, before even opening the Bank Account. | Requires specific approval from RBI, before even opening the Bank Account. | LLP can be setup subject to Foreign Direct Investment guidelines |
| Permitted activities | Activities specified in memorandum of association of the company/ Deed/ agreement, subject to Foreign Direct Investment guidelines | Activities specified in memorandum of association of the company, subject to Foreign Direct Investment guidelines | Liaison activities No commercial/ business activities are permitted | Restricted scope Activities listed by RBI are only allowed to be undertaken | LLP has to be engaged in sectors for which 100% Foreign Direct Investment is allowed through automatic route and no Foreign Direct Investment-linked conditions are applicable |
| Key compliance requirements under FEMA | Requires to file periodic and annual filings relating to foreign liabilities and assets, receipt of capital and issuance/ transfer of shares to foreign investors | Requires to file periodic and annual filings relating to foreign liabilities and assets, receipt of capital and issuance/ transfer of shares to foreign investors | Requires to file Annual activity certificate (by auditors in India) with RBI | Requires to file Annual activity certificate (by auditors in India) with RBI | Requires to report the details of receipt of amount of consideration for capital contribution Disinvestment/ transfer of capital contribution are required to be reported to RBI. |
| Repatriation | Does not require any approval for remittance of post-tax profits; dividends declared will be subject to distribution tax | Does not require any approval for remittance of post-tax profits; dividends declared will be subject to distribution tax | LO is not permitted to undertake any business activity; as such, may not be any repatriations from LO. | Approval not required for remittance of post- tax profits to HO outside India, subject to filing of requisite documents with RBI | Does not require any approval for remittance of post-tax profits. Unlike a Company, an LLP is not required to pay tax on withdrawal of profits from partner’s capital. |
| Ease of Exit | Prior approval of RBI, ROC and income tax authorities | Simple or Complex depending upon the strategy adopted. Exit can be through sale of shares or liquidation. | Prior approval of RBI, ROC and income tax authorities | Prior approval of RBI, ROC and income tax authorities | Complex depending upon the strategy adopted Exit can be through sale of interest or dissolution. |
| Time Involved (Approx) | 8-10 weeks | 8-10 weeks | 20-24 weeks | 20-24 weeks | 8-10 weeks |
| Compliances | Depends upon the legal form of JV | RBI, MCA, and Income Tax, FEMA, etc. | RBI, MCA, and Income Tax, FEMA, etc. | RBI, MCA, and Income Tax, FEMA, etc. | RBI, MCA, and Income Tax, FEMA, etc. |
*Cost involved, includes Approximate Statutory fees, Administration Cost, Incidental Expenses, Out of Pocket Expenses and Professional Fees .
Notes:
- GST will be charged extra as per applicable rates on Professional Fees.
- To convert INR to USD we have considered $1 = INR 70
Get Help Beyond your Borders
Operating abroad doesn’t have to be as challenging as it is