Branch or Indian Co.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2011 I had seen question some where as follows, will you help me

The co. in UK wants to start business in India. The indian concern imports goods from its foreign UK concern. It has two options 1. to float Indian compnay with two shareholders indepedent of UK co 2. to open branch in India
Which option is best as per companies act and as per Income Tax act

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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24 January 2011 As per income tax opening a new company in india is best.

As per companies act onle one option is allowed, so you cannot choose which one is good.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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10 March 2011 The answer shall need to be evaluated on overall situation and the tax benefits available to indian and foreign entity.

Normally the Indian subsidiary route is preferred bu in some cases branch is the only BEST option.

The situation needs to be analyzed from the Transfer pricing perspective also.

Anuj
9810106211

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