Growing business in India is an exciting opportunity for many foreign global businesses, because of its booming sectors, India is leading the market all over the world. However, the most important challenge before forming a company in India is to select the right business structure. This step is important because it affects compliance requirements, taxation, ownership, and long-term strategy.
When the foreign company planned to set up a company in India, their biggest challenge was to select the right business structure. They had a clear business model between a Wholly Owned Subsidiary or a Limited Liability Partnership (LLP).
- Allow them to maintain full control over Indian operations.
- Provided with the flexibility in operations and investment.
- Protection provided through Limited Liability.
- Aligned with their future growth plans in India, fundraising, and scalability.
At KDP Accountants, we followed a structured advisory process instead of jumping to a conclusion. Here's how we guided the company:
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Understanding business goals: Firstly, we discussed their expansion plans, including revenues, staffing, and funding plans for the next 3-5 years.
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Regulatory Review: With the help of our professional advisors, we evaluated FEMA and FDI rules to check if there are any restrictions on foreign ownership.
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Comparative Analysis: We prepared a detailed comparison between LLP and Wholly Owned Subsidiary, including ownership flexibility, taxation impact, and requirements of compliance.
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Final Recommendation Step: We suggested the structure best aligned with their business goals.
With the help of our professionals, the company decided to set up a Wholly Owned Subsidiary in India. This decision gave them a big move:
- They have 100% foreign ownership and control.
- This allowed them to raise future investment and a structure that matched their global operations.
We also assisted them with the incorporation process, RBI filings, GST, PAN, and TAN.
Every foreign company who are looking to enter India faces multiple challenges, whether it is while choosing the right business structure, understanding compliance, or growth of the company. At the initial stage, with the help of professional guidance can save companies from costly mistakes later. In this case, our structured plan helped the client choose between the subsidiary and LLP, ensuring they chose a model aligned with their long-term goals.
At KDP Accountants, we help foreign companies expand into India with a better understanding of advisory and compliance support. For expert guidance, connect with us at enquire@kdpaccountants.com, whether it's the compliance process, complete company incorporation services, we provide end-to-end solutions for a hassle-free India entry.
