Accorp is a leading financial adviser firm with in-depth domain
knowledge of the business and regulater environment that enable our clients to meet their strategic aspirations
Arrival briefing meeting
Registration with Foreigners Regional Registration Office (FRRO)
Registration with tax authorities to obtain Permanent Account Number (PAN)
During assignment in India
Employer’s obligationMonthly tax withholding obligation, filing of quarterly withholding tax returns, issuance of Form 16 at the end of each tax year Compliance with Indian Social Security Provisions for expats qualifying as International Workers
Expatriate’s ObligationFiling of Individual tax return at the end of the relevant tax year by the prescribed due date
At the end of the assignment
Filing of Individual tax return with the tax authorities
Obtaining No –Objection Certificate (NOC) from Indian Tax authorities
Other Services
Extension of Visa/FRRO
Assistance in Assignment Structuring / Secondment Documentation
Representing expats before the tax authorities in case of scrutiny assessments
At the time of Departure-
Departure briefing meeting
Filing Form 30 C
Conversion of Saving bank accounts to NRO accounts
During assignment outside India
Employer’s obligation-
Running of Shadow payroll and calculation of hypothetical tax in case the outbound is covered under tax equalization policy of the company
Tax withholding compliance (i.e Issuance of Form 16 and Form 12 BA)
Compliance with Indian Social Security Provisions for outbound assignees qualifying as International Workers
Assignee’s Obligation
Calculation and deposition of advance tax liability (if required)
Filing of Individual tax return at the end of the relevant tax year by the prescribed due date (if applicable). It includes analysis of various provisions of Double Taxation Avoidance Agreement (DTAA) to claim the tax credit on doubly taxed Income (if any)
Other Services
Assistance in assignment structuring including formulation of tax equalization/ tax protection policy
faq on liasion/project office
Inbound Services
Arrival briefing meeting
Registration with Foreigners Regional Registration Office (FRRO)
Registration with tax authorities to obtain Permanent Account Number (PAN)
During assignment in India
Employer’s obligationMonthly tax withholding obligation, filing of quarterly withholding tax returns, issuance of Form 16 at the end of each tax year
Compliance with Indian Social Security Provisions for expats qualifying as International Workers
Expatriate’s ObligationFiling of Individual tax return at the end of the relevant tax year by the prescribed due date
At the end of the assignment
Filing of Individual tax return with the tax authorities
Obtaining No –Objection Certificate (NOC) from Indian Tax authorities
At the end of the assignment
Extension of Visa/FRRO
Assistance in Assignment Structuring / Secondment Documentation
Representing expats before the tax authorities in case of scrutiny assessments
Outbound services
At the time of Departure-
Departure briefing meeting
Filing Form 30 C
Conversion of Saving bank accounts to NRO accounts
Employer’s obligation-
Running of Shadow payroll and calculation of hypothetical tax in case the outbound is covered under tax equalization policy of the company
Tax withholding compliance (i.e Issuance of Form 16 and Form 12 BA)
Compliance with Indian Social Security Provisions for outbound assignees qualifying as International Workers
Assignee’s Obligation
Calculation and deposition of advance tax liability (if required)
Filing of Individual tax return at the end of the relevant tax year by the prescribed due date (if applicable). It includes analysis of various provisions of Double Taxation Avoidance Agreement (DTAA) to claim the tax credit on doubly taxed Income (if any)
Other Services
Assistance in assignment structuring including formulation of tax equalization/ tax protection policy
Entity Type
Taxability & Repatriation
Liaison Office
A Liaison Office (LO) is generally not subject to Income Tax in India, as it cannot conduct business activities and earn profits on account of Indian exchange control regulations.
It is required to obtain an Indian tax registration number (PAN) and a withholding tax registration number (TAN).
It is required to file an annual statement of its financial affairs and an annual activity certificate (AAC).
As an LO cannot generally earn any profits, no repatriation taxes are applicable. Even if there are any unutilized funds available at the time of its closure, they can be repatriated without any exit taxes.
Project Office/ Branch Office
A Project Office (PO)/ Branch Office (BO) is treated as an Indian Permanent Establishment (PE) of its Foreign headquarter. Therefore, it is taxable in respect of its Indian profits @ 40%*.
It is required to obtain a PAN and TAN, file an annual return of income and an AAC.
Repatriation of surplus or at the time of closure, PO/ BO is not subject to any additional taxes.
* Plus applicable surcharge and cess
LLP
An LLP incorporated in India is treated as a tax resident of India and is taxed @ 30%* of its global income.
It is required to obtain a PAN and TAN, and file an annual return of income.
When LLP distributes its profits to partners, they are not taxed in the hands of the LLP or its partners. Repatriation of capital contribution (say, upon dissolution) is permissible without any thresholds and is not subject to any additional taxes.
* Plus applicable surcharge and cess
Company formed in India (Wholly-owned subsidiary/ Joint Venture)
A company incorporated in India is treated as a tax resident of India and is taxed @ 30%* on its global income. However, if its turnover is up to INR 4,000 mn in FY 2017-18, then the applicable rate of tax is 25%*.
It is required to obtain a PAN and TAN, and file an annual return of income.
Profit repatriation by way of a dividend is subject to Dividend Distribution Tax (DDT) in the hands of the company @ 20.36% of dividend declared.
* Plus applicable surcharge and cess
Correct Entity Type
Permissible Business Activities
Private Limited Company(Wholly/Partially Owned or Joint venture)
Wide range of activities permitted under automatic route/approval route Please check the link http://dipp.nic.in/English/policy/changes/press2_00.htm for list of activities under automatic/approval route)
Liaison Office (LO)
Marketing & branding. No commercial activities that involves revenue generation
Branch Office (PO)
Execution of any awarded project in India. Example is project of Installation of Machinery at Airport.
Project Office (BO)
All activities of parent company, except manufacturing activities
Limited Liability Partnership
Wide range of activities permitted under approval route
Legal Composition
Private Limited Company(Wholly/Partially Owned or Joint venture)
Entire Share Capital can be owned by foreign investor- Wholly Owned Subsidiary-WOS
2 or more parties can jointly hold the share capital-Joint Venture -JV
Liaison Office (LO)
Representative Office only
Branch Office (PO)
For executing a time bound project
Project Office (BO)
Representative office of Head Office
Limited Liability Partnership
Limited Liability Partnership Firm.
Minimum Number of Directors
Private Limited Company(Wholly/Partially Owned or Joint venture)
2 Directors 1 to be resident in India
Liaison Office (LO)
1 Representative
Branch Office (PO)
1 Representative
Project Office (BO)
1 Representative
Limited Liability Partnership
2 Partner
Minimum Number of Investors
Private Limited Company(Wholly/Partially Owned or Joint venture)
2
Liaison Office (LO)
N.A.
Branch Office (PO)
N.A.
Project Office (BO)
N.A.
Limited Liability Partnership
2
Minimum Share Capital
Private Limited Company(Wholly/Partially Owned or Joint venture)
Minimum Share Capital
Liaison Office (LO)
N.A.
Branch Office (PO)
N.A.
Project Office (BO)
N.A.
Limited Liability Partnership
NIL
Legal Permission
Private Limited Company(Wholly/Partially Owned or Joint venture)
Automatic Route/Approval by individual Government Departments
Liaison Office (LO)
Advance approval from RBI
Branch Office (PO)
Advance approval from RBI
Project Office (BO)
Advance approval from RBI
Limited Liability Partnership
Advance approval from RBI
Corporate Liability
Private Limited Company(Wholly/Partially Owned or Joint venture)
Limited to the subscribed share capital
Liaison Office (LO)
Full liability of parent
Branch Office (PO)
Full liability of parent
Project Office (BO)
Full liability of parent
Limited Liability Partnership
Partners liability up to agreed contribution
Tax Structure
Private Limited Company(Wholly/Partially Owned or Joint venture)
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