Foreign businesses entering the Indian market must make strategic decisions about the type of legal entity they want to establish. Options include setting up:

• Wholly Owned Subsidiaries
• Joint Ventures
• Branch Offices
• Liaison Offices

Each structure has different legal, tax, and regulatory implications. At R Pareva & Company, we assist foreign businesses in choosing the appropriate structure based on their specific business objectives and the regulatory environment in India. Our services include:

• Business entity incorporation: We handle all the necessary filings and registrations with Indian authorities, ensuring a smooth and compliant entry into the Indian market.
• Regulatory approvals: We help obtain the necessary approvals from the Reserve Bank of India (RBI) and other regulatory bodies for foreign direct investments (FDI).
• Legal documentation: Drafting and reviewing contracts, shareholder agreements, and other key legal documents to ensure compliance with Indian laws.

Once a business is established in India, it must comply with ongoing corporate governance requirements under the Companies Act 2013. These include filing annual returns, maintaining statutory registers, and holding board and shareholder meetings. Our corporate secretarial services include:

• Annual compliance filings: Preparation and filing of annual returns with the Registrar of Companies (RoC), ensuring compliance with Indian corporate laws.
• Corporate governance: Assistance with conducting board meetings, preparing minutes, and maintaining statutory registers.
• Legal updates: Monitoring changes in Indian corporate laws and advising clients on their implications.

Foreign exchange regulations in India are governed by the Foreign Exchange Management Act (FEMA), which sets the rules for Cross Border Payments for Indian Businesses, including investments, repatriation of profits, and borrowing in foreign currency. Compliance with FEMA is essential for foreign companies conducting business in India. We provide a full range of FEMA and RBI compliance services including:

• FEMA advisory: Guidance on foreign direct investment (FDI) regulations, foreign portfolio investment (FPI), and external commercial borrowings (ECBs).
• Transaction advisory: Assistance with repatriation of profits, dividends, and royalties in compliance with FEMA regulations.
• FEMA filings: Preparation and submission of forms and filings to the RBI for cross-border transactions and investments.

For multinational corporations, transfer pricing is a critical area of compliance. Indian tax authorities closely scrutinize transactions between related parties to ensure that they are conducted at arm’s length. Non-compliance can lead to significant penalties and tax liabilities. Our transfer pricing services include:

• Transfer pricing documentation: Preparing and maintaining documentation that supports the pricing of cross-border transactions in compliance with Indian transfer pricing regulations.
• Transfer pricing audits: Assisting clients in responding to audits and inquiries from the Indian tax authorities.
• Advance pricing agreements (APAs): We help clients negotiate APAs with Indian tax authorities to gain certainty over transfer pricing arrangements.

Corporate taxation in India can be complex, particularly for foreign businesses with cross-border operations. Our tax compliance services ensure that businesses comply with Indian tax laws while also optimizing their tax position to minimize liabilities. We provide extensive corporate tax compliance services, which include:

• Corporate income tax filings: Preparation and filing of corporate tax returns, ensuring compliance with Corporate Taxation in Delhi and India.
• Tax withholding: Assistance with tax withholding on cross-border payments, including dividends, interest, and royalties, in compliance with DTAA provisions.
• GST compliance: Advisory on Goods and Services Tax (GST), including registration, filing of returns, and claiming input tax credits for cross-border transactions.

Foreign businesses operating in India must comply with Indian labour laws, which regulate employment contracts, wages, working conditions, and employee benefits. Failure to comply can lead to penalties and legal repercussions. Our labour law compliance services include:

• Drafting employment contracts: Ensuring that employment contracts comply with Indian labor laws and best practices.
• Employee benefits compliance: Consulting on adherence to Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), and other mandatory employee benefits.
• Advisory on labour disputes: Assistance with resolving labour disputes and complying with Indian labour courts.