15 January 2021
Hi, I run an Edutech startup in India. It is a pvt ltd company. As part of our expansion, we are planning to open a FreeZone company in Dubai as a separate venture (not as a subsidiary). After the incorporation, in order to carry forward the experience and valuation of our Indian company:
1: can the new FZ LLC (Freezone company) acquire the Indian company so that the Indian company becomes a wholly-owned subsidiary of the Dubai company?
2: Is this strategy logical?
3: Are there any repercussions to it?
4: Would there be any tax issues?
5: What are the compliances that need to be taken care of?
6: Would it be a problem if the directors and shareholders of both the companies are the same (my co-founder and me - we do not have any outside investors yet)
CAclubindia
