Dear Friends,
Few of my frientds are living in the US and would like to start a small Software Development company in the US. They want to establish a Project Office/Branch Office in India (Hyderabad) by hiring few Software Engineers and transfer the projects that they get there to Hyderabad, India for development. That Project Office/Branch Office should act as 100% subsidiary/EOU to the parent company in the US, and at a future date and time they would like to sell that company to another company in the US. In this regard, the would like to know the following:
1. Do they have to register that Project Office/Branch Office in Hyderabad, India with the Indian ROC and RBI?
2. Do they have to maintain separate set of Books of Account and are these Books of Account required to be Audited?
3. Does that Project Office/Branch Office require to file its Income Tax Returuns in India?
4. Does that Project Office/Branch Office get any benefits under various Direct and Indirect Tax Laws in India?
5. Does that Project Office/Branch Office require to be valued separtely at the time they want to sell the parent company in the US to another company in the US?
6. Do they have to take any permissions, approvals, etc from any authority/ies in India at the time of selling out their parent company along with the Branch Office/Project Office in India?
Specifically, they want to avoid double taxation, double valuation which might cause a deficit at the time of selling the parent company, double accounting of transactions, etc.
Can anyone please help me in this regard ASAP.
Cheers
Chandrashekhar
CAclubindia
