creation of pvt. ltd. co. or branch of foriegn co

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anand sabharwal (Querist)
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28 September 2010 one of my clients from america is developing a website in america. he has hired some software development professionals in india for software development work of that website due to cheap labour / outsourcing to india. Right now he is making payments to professionals in india from U.S.A. & wants to regulate this business, as he wants to cater other clients also in U.S.A. to development software for them from here in india.
my query is what should he do?
1. should he create a private ltd. co. in india?
2. should he open a branch of foriegn co. in india(he is the director of his co. in U.S.A.)
pls. answer w.r.t. benefits he can enjoy under FEMA and benefits / conveineances he can get under income tax / service tax. Any Income tax exemption for export of software from india FOR BOTH THE OPTIONS?? I WILL BE VERY GREATFUL.........

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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11 March 2011 1)yes ideally he should create a private limited company in India.
2)should not be a case but shall depend on the facts of the case.

Anuj
0-9810106211

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