Tags
Inversion
File
Files & media
Corporate Structure Changes
- Analyze implications for setting up new parent holding entity overseas
- Appropriate jurisdiction choice from tax perspective
- Related costs for restructuring exercise
Capital Flow Considerations
- Examine foreign exchange management rules for outbound investments from India
- Any sectoral caps under automatic/approval route
- Plan fund flows, reporting needs under Liberalized Remittance Scheme
Tax Implications
- Potential capital gains tax arising for shareholders
- Indirect transfer provisions under Income Tax Act
- Availability of foreign tax credits
Regulatory Obligations
- Requirement for RBI approval if NRI/PIO/OCI investors involved
- Intimations needed to ROC, ED, RBI for implementing the structure
Shareholder Requirements
- Shareholder approval needed as per Companies Act 2013
- Management of minority shareholders during restructure
- Coordinate share transfers through overseas entity setups
Future Flexibility
- Retain room for attracting foreign investors later
- Scale oversight needs if global investor entry happens
- Geography neutral structure without biases