Outbound Investment Structuring

BIATConsultant can help you managing holding company regime , exemption /thin cap rules , IPR regime as well as handling worldwide withholding tax provisions .

What is outbound investment structuring?

Under automatic route, an Indian Company is not required to take prior approval from the RBI for setting up JV/WOS abroad. The criteria for direct investment under the automatic route shall include-
1. Investment upto 400% of the net worth.
2. Valuation requirements to be complied with to valuation of investment.
3. Indian companies are not in RBIs caution list.
4. Submission of APR in respect of all overseas investment.
5. Certain additional requirements are also to be complied with if the indian company is engaged in providing financial services.
6. Also, the foreign companies engaged in providing financial services.
7. Also, the foreign companies engaged in real estate, trading in TDRs, and banking business required prior approval of RBI.


Common List Of Questioner That Our Customer Ask From Us -Solved !
What are the benefits of SPVs? ?
1. Flexibility in borrowing and corporate restructuring.
2. JV private equity funding.
3. Bilateral Agreements.
4. Tax Efficiency.
5. Ease of entry and exit.
6. Overseas listing.
What are the significance of it ?
1. Participation Exemption- benefit of exemption in the SPVs jurisdiction, for dividend and capital gains, coming from downstream investments on the fulfillment of certain conditions. 2. IPR Regime- specific deductions, exemptions, and incentives are available in some jurisdictions with regard to IPR holding such as Patent Box regime. 3. Withholding Tax Provisions- withholding tax exemptions on dividends, royalties and interest. 4. Favorable Holding Company Regime- Lower income tax rates for holding companies under specific holding company regimes, existence of CFS provisions. 5. Thin Capitalization rules- companies are said to be capitalized thinly when its capital compromises a greater proportion of debt equity.
What are the Key services provided by us ?
1. Advice and assistance on entity structuring, capital structuring and regulatory approval process in the selected jurisdiction.
2. Advice and assistance on cross border investment strategies including suggestions for obtaining optimal ownership structures for investing into a particular jurisdiction.
3. Assist in finalising and review of shareholders, joint venture and other business agreements and arrangements from tax perspective.
4. Identify and enhance tax and fiscal benefits including obtaining tax ruling in the selected jurisdiction.
5. Advice on credit claim in India and aso tax treaty implication.
6. Assist in obtaining approval from RBI and also from the regulatory authorities.

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