Helping a Nordic company establish a strong presence in India
Penetrating the Indian market is a challenging process, especially for a foreign entity unfamiliar with the Indian regulatory environment and our client faced a long list of challenges:
- Regulatory complexity: Incorporating an entity requires approvals from multiple governmental bodies, including the Ministry of Corporate Affairs and the Reserve Bank of India.
- Taxation and financial structuring: The client needed a tax-efficient model that allowed for smooth fund repatriation and compliance with Indian transfer pricing rules.
- Cultural and operational alignment: The Indian business culture differs significantly from Nordic work environments therefore, they need a strategy to integrate local talent while maintaining their values.
- Licensing and approvals: Before operations could officially begin, industry-specific licenses were required.
- Hiring and HR compliance: The company needed to set up a compliant payroll system, employment contracts, and social security contributions for local employees.
Without proper planning, the expansion could face delays, compliance risks, and unexpected financial costs.
Why they chose us?
The client chose to work with us as we were able to cover the broad scope of work incorporating a foreign entity implies:
- Deep expertise in cross-border company setup, particularly for Nordic businesses entering India.
- Strong knowledge of regulatory and compliance requirements, ensuring a smooth incorporation process.
- Experience in tax structuring, helping businesses optimize cash flow and financial efficiency.
- A practical, business-first approach, guaranteeing the setup process is aligned with the company’s long-term strategy.
We provided an end-to-end solution, ensuring that the company was legally compliant, financially optimized, and operationally ready in India.
Choosing the right structure
A key decision was determining the best incorporation model based on business goals. We evaluated different options, including:
- A wholly owned subsidiary, giving full operational control.
- A liaison office is needed for representation without full-scale business operations.
- A joint venture to leverage local partnership opportunities.
After assessing the risks and benefits, we guided them to set up a fully owned subsidiary, allowing them to retain absolute control while complying with India’s foreign investment regulations.
Managing regulatory compliance and legal matters
SVOD Advisory managed the entire incorporation process, ensuring compliance with:
- Foreign direct investment regulations
- Industry-specific licensing requirements
- Goods and Services tax registration
- Corporate law and tax documentation
Optimizing the financial and tax structure
A well-planned financial structure ensured smooth cash flow and tax efficiency.
- We developed a transfer pricing strategy to manage cross-border transactions.
- We structured the entity’s capital and tax planning to minimize liabilities.
- We advised on foreign exchange regulations, making it easier to repatriate profits.
Building a strong workforce and operations strategy
To ensure a successful launch, we helped the company:
- Set up HR and payroll systems that are compliant with Indian labor laws.
- Develop a recruitment strategy to hire and retain top local talent.
- Align workplace policies with the company’s Nordic culture while adapting to the Indian market.
By the end of the project, the company had a fully operational and compliant entity in India with a structured plan for future growth.
- Faster incorporation – The entire setup was completed 30% quicker than expected, avoiding costly delays.
- Tax-efficient structure – The financial model ensured optimized taxation and smooth cross-border transactions.
- Smooth workforce integration – The company successfully built a locally compliant yet culturally aligned team.
- Market-ready within six months – The company was ready to start operations and expand its customer base in India
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