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An overview of the Client
A Canada-based manufacturer of corrugated boxes has planned to establish their operations in India to take advantage of the rapidly expanding packaging and logistics industries in India.
- Country: Canada
- Industry: Manufacturing (Corrugated Boxes)
- Location in India: Greater Noida
- Objective: To establish operations in India and obtain financing for the set-up of its manufacturing plant.
The Challenge
To enter into the Indian market the client needed to pass through the several complexities relating to regulatory and financial issues.
- Identify the appropriate business structure through which they should enter into India considering the FDI laws, company’s objectives, scale of operations, investment plans, and risk appetite.
- To access capital through a combination of equity and external commercial borrowings (ECB).
- Ensure compliance with all applicable Indian regulations i.e Income Tax Act,1961, RBI guidelines for Foreign Direct Investment, Companies Act,2013
- Set up a transfer pricing compliance framework that aligns Indian operations to its global compliance.
- Set up the manufacturing facility as quickly as possible and with the least amount of cost.
- Hiring and Onboarding Process of the Right Workforce in India while ensuring complying with Indian Labour laws.
Our Approach and Solution
At Companiesnext, we have provided the client with an end-to-end advisory services on applicable compliance and registration, including:
1. Set-up and Structuring of Entity
- Advice on the most suitable business structure for manufacturing operations in India
- Registered the wholly owned subsidiary of Canadian company in compliance with Indian laws within a short span of time
2. Fundraising and Capital Structuring
- Assisted the client in in financing by providing the following assistance:
a) Issuing new shares
b) Obtaining ECBs
- Provided the client with a full range of compliance advice regarding its obligations under Income Tax, FEMA and Companies Act, 2013.
3. Regulatory & Compliance Advisory
A full suite of consulting services that include providing advice about:
- The Reserve Bank of India's Regulations Foreign Direct Investment
- The Companies Act 2013
- The Income Tax Act, 1961
- Labour Laws
- Other applicable state and local laws
4. Virtual CFO & Financial Management Support
- Provide ongoing virtual financial executive services to guide clients through all areas of financial decision making.
- Provide assistance in developing budgets, cash flow projections and assisting client with all their financial planning activities.
- Ensure that all financial reports correlate with the parent company's global reporting policy.
- Develop tax structures and effectively strategize to maximize tax efficiency for clients.
5. HR & Payroll Setup
- Supported Hiring of Employees
- Developed Payroll Structure in compliance with labour laws.
- Advised on Employment Contracts, Compliance, and HR Process Development
Results:
1. Setting up of Manufacturing Plant
Client was able to establish a Manufacturing plant in Greater Noida with compliance with the operational & regulatory requirements
2. Funding for Operation
Client was able to secure a funding through mixture of equity and External commercial Borrowing ensuring required capital for setting up of Business operation
3. Accelerated timeline
The client was able to achieve with setting up of business with an accelerated timeline & handled the incorporation & regulatory requirements
4. Optimized Cost Structure
The Client was able to achieve cost efficiency through Strategic Tax Planning & efficient structuring.
5. Regulatory Compliance ensured
The Client was able to compliance with the applicable law including FEMA, Companies Act and Indian Tax regulations
6. Smooth Commencement
The Easy in opening of business structure in India, allows the client to begin production as per the required timeline.
Planning to Expand into India?
If you are a foreign company looking to set up operations in India, we help you navigate regulations, raise funds, and go operational quickly and compliantly.