Our collection of resources based on what we have learned on the ground
Resources
Q&A
Which options do foreign companies have for establishing a business in India?
- May 2014
- Free Access
Prospective foreign companies and investors seeking to take advantage of India’s liberalized FDI caps have choice from four entities that can be established when a business enters India or expands its scope of operations: Liaison offices Br...
Q&A
What are the requirements for setting up a project office in India?
- May 2014
- Free Access
If a foreign company has secured a contract from an Indian company to execute a project in India and has attained the appropriate funding source or government clearance, a project office may be established. One of the following criteria must be met i...
Q&A
What is the process for setting up a project office in India?
- May 2014
- Free Access
If a project office is approved, it should notify the relevant regional Director General of Police within five days of the office’s establishment. Within two months of the project office’s establishment, the overseas company must also sub...
Q&A
What kind of wholly owned subsidiaries can foreign investors establish in India?
- May 2014
- Free Access
Under Indian Law, foreign investors are able to establish wholly owned subsidiary companies (WOS) in the form of private limited companies if they operate in sectors that permit 100 percent foreign direct investment (FDI). With India’s recent r...
Q&A
What is the process for establishing a private limited company in India?
- May 2014
- Free Access
Establishing a private limited company can be a lengthy and complicated process involving multiple steps: First, a minimum of two directors must be appointed and registered through India’s e-filing system for the establishment of a priva...
Q&A
Are corporate entities subject to tax on the distribution of dividends in India?
- May 2014
- Free Access
Yes, corporate entities are subject to a tax on the distribution of dividends. However, in the case of shareholder dividends, the associated income is exempt from tax. The current effective rate of the Dividend Distribution Tax (DDT) is 16.995 percen...
Q&A
What does Minimum Alternate Tax (MAT) entail in India?
- May 2014
- Free Access
All companies declaring low or zero profits are subject to the MAT. Presently, MAT is levied at 18.5 percent of book profits plus the applicable surcharges and education cess. The MAT is levied on companies whose tax payable under normal income tax p...
Q&A
What is wealth tax in India?
- May 2014
- Free Access
Wealth tax is calculated on March 31st of every year (referred to a s the valuation date). Wealth tax is charged to both individuals and companies at the rate of 1 percent of the amount by which the “net wealth” exceeds INR 3,000,000. Th...
Q&A
What is customs duty in India?
- May 2014
- Free Access
Customs duty is levied by the central government on the import and export of goods from India. The rate of customs duty applied to imported and exported products depends on its classification under the Customs Tariff Act. (CTA). In case of exports fr...
Q&A
What are the types of customs duties in India and what do they entail?
- May 2014
- Free Access
The types of customs duties are as followed: Basic Customs Duty (BCD) – BCD is the basic component of customs duty levied at the effective rate stipulated in the First Schedule to the Customs Tariff Act 1985 (CTA) and applied to the landed v...
Q&A
What are duties of excise in India?
- May 2014
- Free Access
Central value-added tax (CENVAT) is a tax levied by the central government on the manufacture or production of movable and marketable goods in India. The rate at which excise duty is leviable on the goods depends on the classification of the goods un...
Q&A
What is the central excise duty in India?
- May 2014
- Free Access
The central excise duty in India is a modified form of value-added tax (VAT) where a manufacturer is allowed credit on the excise duty paid on locally sourced goods as well as on the countervailing duty (CVD) paid on imported goods. The central value...
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