Client Overview:

India is one of the world's high-skilled workforces with cost-effective operations and a favorable business ecosystem for foreign investors and businesses. Due to this, our client, a foreign-based technology consulting firm, decided to expand its business operations into the Indian market to build a local delivery center and support its growing global clientele.

Firstly, they incorporated a Private Limited Company in India, and they needed expert assistance in:

1. Opening a bank account in India.
2. Understanding Indian payroll regulations.
3. And setting up a smooth and compliant salary disbursement system.

So they approached us at Kamdar Desai & Patel Associates. With our years of experience in foreign company setup in India, we helped the client streamline their banking operations and payroll processes, and ensured full compliance with Indian tax and regulatory laws.

Challenges:

Incorporating the company in India process was completed successfully, but the client had several obstacles in the next stage:

• As a foreign entity, opening a corporate bank account in India along with documentation requirements was complex.
• Difficulty in understanding FEMA regulations and KYC norms.
• Clarity on setting up a compliant payroll structure for the first few employees.
• Managing TDS deductions, PF, and monthly salary disbursements.

Our Approach:

Assistance in Opening a Bank Account:

• Coordinated with the reputed Indian banks that are experienced in handling foreign companies.
• Assisted with client in preparing the necessary KYC verification and company documents.
• Helped them verify the Foreign Inward Remittance Certificate (FIRC) for capital injection and made sure that RBI's FEMA rules and regulations are followed.

Setting up Payroll service:

• Designed a customized payroll structure as per Indian tax laws and labor compliance.
• Helped them in registration under the Employee Provident Fund (EPF) and Professional Tax, where applicable.
• Implemented TDS deduction and helped the client with required forms and monthly statutory filings.

Ongoing Compliance Support:

• Created a monthly payroll compliance calendar to ensure timely filings.
• Advised on employee reimbursements, bonus calculations, and employee benefits

Results:

1. Within 2 weeks of post-incorporation, the client successfully opened a corporate bank account in India.
2. With the help of Indian tax and labor laws, the first payroll setup for a foreign company in India was processed smoothly.
3. The Company is now running a successful monthly payroll and statutory backed up by KDP's ongoing support.

Conclusion:

At KDP Accountants, we specialize in helping foreign companies to set up a company in India with complete regulatory confidence. Our end-to-end support ensures that international businesses have a smooth and compliant start in India.

Whether you're planning to expand business in India or need help in managing your post-incorporation compliances, for expert guidance, reach out to us at enquire@kdpaccountants.com. With our professional experts, we offer tailored solutions to meet your business needs.