Outbound: India Entity’s Global Expansion plan
Our client is an Indian-based company specializing in Visual Effects (VFX) solutions. Their goal is to establish themselves as a strong competitor to leading Hollywood VFX companies and provide services to major international film production houses. To achieve this, the company had several key objectives.
Firstly, they needed assistance in selecting the most suitable jurisdiction that would align with their objectives while also being cost-effective. We provided guidance on choosing an optimal jurisdiction that would meet their needs.
Secondly, the company wanted to maximize value unlocking by determining the ideal jurisdiction and legal shareholding structure. We conducted a thorough study of the tax and regulatory implications from India and the potential jurisdictions, providing the company with detailed recommendations to achieve their goal.
Lastly, ensuring compliance with transfer pricing regulations in both India and the chosen jurisdiction was crucial. We offered our expertise and guidance on developing an intercompany pricing model that adhered to these regulations.
In summary, our services included conducting a comprehensive analysis of tax and regulatory implications, providing guidance on transfer pricing, and assisting the company in selecting the right jurisdiction and legal structure to achieve their objectives.
Inbound: Foreign Company setting up Operations in India
Our Client, a publicly traded company on the London Stock Exchange, sought our expertise to establish operations in India within a specific timeframe. They approached us for guidance on various matters related to this endeavor. These included determining the appropriate legal shareholding structure, establishing the board composition at the India level, developing an inter-company pricing model, creating a fund infusion plan that considered equity and debt options, deciding on the method of profit repatriation and assessing associated costs, implementing corporate governance practices, and obtaining approval for the setup of a Software Technology Parks of India (STPI).
In response to their requirements, we prepared a comprehensive note covering all the aspects. This document underwent a thorough review and validation by a reputable law firm specializing in both Indian and UK legal frameworks.
Our assistance enabled the client to navigate the complexities of setting up operations in India while ensuring compliance with legal and regulatory requirements, as well as aligning with their strategic objectives and timeline.