A UK-headquartered software firm wanted to set up a GCC in Chandigarh/Mohali. PGA & Co. advised on entity structure, cost-plus transfer pricing, PE risk assessment, FEMA compliance, and ongoing tax withholding.
â ï¸ The Challenge
Client was operating with Indian contractors for 2 years before formalising. This created PE exposure risk. Also needed to decide between subsidiary, branch office, and liaison office structures.
ð¡ Our Solution
Recommended wholly owned subsidiary. Conducted PE risk assessment and filed voluntary disclosure. Negotiated cost-plus transfer pricing model with appropriate markup. Set up FEMA/RBI reporting. Designed monthly withholding tax (TDS) compliance calendar.
â Results Achieved
- PE risk assessed and mitigated through voluntary disclosure
- WOS incorporated with FDI compliance
- Cost-plus TP model established and Form 3CEB filed
- Full FEMA/RBI ongoing compliance managed
* Client identities and specific financial figures may have been modified to preserve confidentiality. All case studies represent real engagement types handled by PGA & Co.
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