Brus Chambers
attends to foreign companies for entry
strategies in India and assisting them
through Government regulations and
procedures for setting up their
operations in India. Advising on aspects
of foreign direct investment (FDI)
under automatic or government approval
route i.e. foreign investment
promotion board (FIPB) approval for
Indian subsidiary ; formation of branch
or liason office. Brus
Chambers also advises on project & site
office approvals
Brus Chambers attends to structuring and
advising on applications to reserve bank of india; Industrial licensing, Government
contracts, transfer of technology and
licensing, repatriation. The firm advice
on various provisions & procedures
relating to foreign
exchange management act (FEMA) and its
regulations, imports and exports
regulation.
Our range of services includes :
Advising on methods & strategies to
be adopted in those sectors where
investment caps have been prescribed to
protect the interests of foreign
enterprise
Structuring the investment in India in
the most tax efficient manner after
considering benefits available under
domestic tax laws and also the benefits
under various Tax treaties in order to
ensure tax minimization on a global
basis
Obtainment of clearance from the Foreign
Investment Promotion Board and Reserve
Bank of India, where necessary
Advising on the various compliance
procedures under relevant laws, rules
and regulations including industry
specific legal issues
SUBSIDIARY
COMPANY
A Foreign corporation can set up its
subsidiary company either in the form of
a private limited company or as a public
limited company in India. A subsidiary
of a public corporation is also treated
as a public company. The subsidiary
companies can either be wholly owned
subsidiaries of the foreign companies or
it can be a joint venture with Indian
partners. Except in a few sectors where
foreign direct investment cap is
applicable, the foreign company can hold
100% of the equity of the subsidiary
company. In those sectors where foreign
direct investment cap is applicable,
total foreign equity holding shall be
restricted to such levels.
A company in India is required to be
incorporated under The Companies Act,
1956 and is also required to comply with
various regulations/ procedures laid
down under the Companies Act, 1956. In
comparison with the branch office and
liaison office, a subsidiary company
provides maximum flexibility for
conducting business in India and it can
also undertake manufacturing activities
in India. The Indian operations of the
company can be funded either through
equity or debt (both foreign and local)
or through internal accruals.
The subsidiary company, incorporated
under the laws of India, is treated as a
domestic company for tax purposes and
accordingly domestic company tax rates
and benefits will apply. However, Indian
transfer pricing regulations shall be
applicable to such companies. No
approval is required for the
repatriation of dividends.
Our
range of services for establishing a
subsidiary company includes :
Advising on / formulating the entry
strategy for India
Structuring the investment in India in
the most tax efficient manner after
considering benefits available under
domestic tax laws and also the benefits
under various Tax treaties in order to
ensure tax minimization on a global
basis
Advising on the possible locations for
setting up manufacturing operations to
obtain maximum tax benefits after taking
into account infrastructural and other
specific special requirements
Guidance in respect of various laws,
rules and regulations that will have a
bearing on setting up of operations in
India
Obtainment of clearance from the Foreign
Investment Promotion Board and Reserve
Bank of India, where necessary
Obtainment of Registrations for
obtainment of certain tax benefits
Total guidance & assistance in the
incorporation of the company including
approval for name of the company,
drafting of Charter Documents
(Memorandum of Association and Article
of Association), filing of documents
required for incorporation and
obtainment of Registration from the
Registrar of Companies
Advising on the various compliance
procedures under relevant laws, rules
and regulations including industry
specific legal issues
BRANCH OFFICE
Foreign corporations/entities
engaged in manufacturing and trading
activities abroad are allowed to set up
branch offices in India. The branch
office can carry the same, or
substantially the same, activities as
the ones carried on by the foreign
corporation overseas except that it
cannot carry manufacturing activity on
its own (sub-contracting is permitted).
It can also stock & sell products in
India and is permitted to acquire
immovable property necessary or
incidental to carrying on activities
permitted by RBI. For opening a branch
office in India, foreign corporations
require a specific approval from the
Reserve Bank of India (RBI). Such
approval prescribes the activities that
a branch office may undertake in India.
Consequently, a foreign corporation
cannot undertake any activity in India
that is not specifically permitted by
RBI.
A branch office is required to register
itself with the Registrar of Companies
and is required to comply with certain
procedural formalities prescribed under
the Companies Act, 1956. For income tax
purposes, a branch office is treated as
an extension of the foreign corporation
in India and taxed at the rate
applicable to foreign companies.
Further, transactions between a branch
and the foreign corporation are subject
to Indian transfer pricing regulations.
As per exchange control regulations, the
branch can meet its expenses out of the
revenues generated in India and its
post-tax profits in India are freely
repatriable to the foreign corporation.
Further surplus funds, on winding up of
the branch office, can be repatriated to
the foreign corporation subject to RBI
approval.
Our range of services includes :
Obtainment of approval from the Reserve
Bank of India and Registrations with
other regulatory authorities
Total guidance & assistance in the
incorporation of the company including
approval for name of the company,
drafting of Charter Documents
(Memorandum of Association and Article
of Association), filing of documents
required for incorporation and
obtainment of Registration from the
Registrar of Companies
Advising on the various compliance
procedures under relevant laws, rules
and regulations
LIASION OFFICE/ REPRESENTATIVE OFFICE
Foreign corporations/entities are
permitted to open liaison
offices/representative offices in India
(subject to obtaining specific approval
from RBI) for undertaking liaison
activities on their behalf. Liaison
office cannot directly or indirectly
undertake any trading, commercial or
manufacturing activity and therefore,
cannot earn any income in India. Its
role is limited to representing the
parent company/group companies in India,
promoting export/import from/to India,
promoting collaborations between parent
company and companies in India and
collecting information about possible
market opportunities and providing
information about the company and its
products to prospective Indian
customers.
No fees, commission or remuneration can
be charged by the Indian liaison office
and all expenses of the liaison office
should be met entirely by remittances
from abroad through normal banking
channels. The setting up of a liaison
office in India is subject to such
conditions as may be stipulated in the
permission granted by RBI. The liaison
office is required to be registered with
the registrar of companies. The liaison
office is required to submit an
auditors' certificate annually to RBI.
Our range of services includes :
Obtainment of approval from the Reserve
Bank of India
Advising on the various compliance
procedures under relevant laws, rules
and regulations including industry
specific legal issues
Acting as representative office of a
foreign entity to in India to promote
its business development and interests
in India
PROJECT OFFICE
A foreign corporation, which has
secured a contract from an Indian
company to execute a project in India,
is allowed to establish a project office
in India without obtaining prior
permission from RBI. Such offices can
not undertake or carry on any activity
other than the activity relating and
incidental to execution of the project.
The exchange control regulations
prescribe certain additional
requirements for setting up project
office sans its approval.
The foreign corporation which sets up
such a project office is required to
furnish a prescribed report to the
concerned regional office of RBI under
whose jurisdiction the project office is
set up. The project office is treated as
an extension of the foreign corporation
in India and is taxed at the rate
applicable to foreign corporations.
Our range of services includes :
Structuring the project office operation in India in
the most tax efficient manner after
considering benefits available under
domestic tax laws and also the benefits
under various Tax treaties in order to
ensure tax minimization on a global
basis
Guidance in respect of various laws,
rules and regulations that will have a
bearing on setting up of operations in
India
Obtainment of clearance from the Reserve
Bank of India, where necessary
Advising on the various compliance
procedures under relevant laws, rules
and regulations including industry
specific legal issues
FOREIGN PORTFOLIO INVESTMENT IN INDIA
Foreign Institutional Investors (FIIs)
can make portfolio investments. FIIs are
allowed to invest in the primary and
secondary capital markets in India under
the Portfolio Investment Scheme (PIS).
The term FII is defined as an
institution established or incorporated
outside India for making investment in
Indian securities and also includes a
sub-account of an FII. FIIs must
register themselves with the Securities
and Exchange Board of India (SEBI) and
comply with the exchange control
regulations of RBI. Foreign pension
funds, mutual funds, investment trusts,
asset management companies, nominee
companies and incorporated/institutional
portfolio managers or their power of
attorney holders are allowed to invest
in India as FIIs. They may invest in
securities traded in both the primary
and secondary markets. These securities
include shares, debentures, warrants,
and units of mutual funds, government
securities and derivative instruments.
Various investment limits have been
prescribed under RBI Regulations for FII
investment in various instruments.
Minimum investment limit in equity and
equity related instruments has been
prescribed in respect of FIIs registered
as non-debt funds.
Our range of services includes:
Structuring the investment in India in
the most tax efficient manner after
considering benefits available under
domestic tax laws and also the benefits
under various Tax treaties in order to
ensure tax minimization on a global
basis
Obtaining registration from Securities
& Exchange Board of India
Obtainment of clearance from the Reserve
Bank of India, where necessary
Advising on hedging strategy in respect
of foreign exchange exposure
Advising on the various compliance
procedures under relevant laws, rules
and regulations .
