Our collection of resources based on what we have learned on the ground

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Q&A

What is the significance of India's 2013 Companies Act?

What is the significance of India's 2013 Companies Act?

The Companies Act, 2013, updates the information that must be included in the statement of repatriation of profits from a foreign company.  Additionally, the Act affects the statement of transfer of funds and the information that it should inclu...

Q&A

What is the significance of India’s Foreign Exchange Management Act (FEMA)?

What is the significance of India’s Foreign Exchange Management Act (FEMA)?

India’s Foreign Exchange Management Act (FEMA) was put into place in 1999 in an effort to promote the foreign exchange market in India.  Through FEMA, the Indian government and the Reserve Bank of India (RBI) work to adjust India’s t...

Q&A

What is the significance of India's 1961 Income Tax Act (ITA)?

What is the significance of India's 1961 Income Tax Act (ITA)?

The Income Tax Act (ITA) states that all companies residing in India are subject to tax, whether their income is earned within the nation of India or abroad.  The government determines the residential status by the location from which a majority...

Q&A

What are a company’s options for repatriating funds from a Wholly Owned Subsid...

What are a company’s options for repatriating funds from a Wholly Owned Subsid...

Foreign companies with long-term goals in the Indian business environment often choose to establish a Wholly Owned Subsidiary (WOS), as it offers a company more flexibility, longevity and a stronger legal foundation.  All funds repatriated throu...

Q&A

What is a Limited Liability Partnership (LLP), and what are their options for re...

What is a Limited Liability Partnership (LLP), and what are their options for re...

Limited Liability Partnerships (LLPs) were first introduced in India in 2008.  LLPs are given legal entity status and limited liability of stakeholders.  They receive the advantages of a company, as well as the operational flexibilities of ...

Q&A

Why is it important to conduct due diligence before entering the Indian market?

Why is it important to conduct due diligence before entering the Indian market?

Carrying out due diligence can  provide an investor with substantial information on business opportunities in their proposed market.  In fact, it could be stated that the purpose of due diligence is not to learn everything about a business ...

Q&A

How can the due diligence process help a foreign investor to traverse the Indian...

How can the due diligence process help a foreign investor to traverse the Indian...

A company’s success is in turn linked to the risk management and mitigation strategy that it undertakes. It is in this regard that due diligence becomes a powerful tool that companies may utilize when dealing with Indian businesses. Due diligen...

Q&A

Why should companies conduct due diligence in India?

Why should companies conduct due diligence in India?

There are two primary reasons why a company should conduct due diligence in India. Firstly, a company that plans to trade with an Indian company should verify that the business is what it appears to be. This is vital in India because several companie...

Q&A

Why is it crucial for companies to determine their market entry strategy in Indi...

Why is it crucial for companies to determine their market entry strategy in Indi...

Particularly related to FDI, foreign exchange, security, and corporate law, as well as direct and indirect taxes, regulatory clearances can be very crucial. It can take a long time to obtain as several clarifications may be required before final appr...

Q&A

What are some of the points which need to be taken into consideration when condu...

What are some of the points which need to be taken into consideration when condu...

When entering the Indian market, investors cannot fail to note the potential of the country’s large and diversified labor pool. Therefore, it is essential for foreign companies to conduct thorough due diligence when navigating the country&rsquo...

Q&A

What are some of the risks involved when companies do not pay attention to HR du...

What are some of the risks involved when companies do not pay attention to HR du...

Operational and financial risks are involved if companies do not conduct HR due diligence in India. Operational risks include a high employee turnover rate, problematic labor relations, and differences over work culture. Firms entering the India mark...

Q&A

How does the India government decide when to build a trade union?

How does the India government decide when to build a trade union?

India’s trade union movement is rooted in the country’s early acceptance of a mixed economy with an incorporation of both socialist and capitalist systems. According to the law, when the number of blue-collar workers at a location exceeds...

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