05 april 19 2007 business development 160407
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PRESENTATION BY
Manishi Pathak
KOCHHAR & CO.AprilApril 19, 2007
Paris, France
DELHI OFFICES-454, GREATER KAILASH-II
NEW DELHI - 110 048TEL: (91-11) 4111 5222, 2921 5477
FAX: (91-11) 2921 9656, 2921 4932EMAIL: [email protected]
BANGALORE OFFICE202, PRESTIGE MERIDIAN-2
BANGALORE - 560 001Tel.: (91-80) 4112 4994,
411 4995Fax. (91-80) 4112 4998
EMAIL:
[email protected] OFFICE
SUITE #503, 5TH FLOORRAHEJA TOWERS, 177
ANNA SALAICHENNAI - 600 002
TEL: (91-44) 2860 5775 -76
Fax.: (91-44) 2860 7588EMAIL:
MUMBAI OFFICE17TH FLR, NIRMAL BUILDING
NARIMAN POINTMUMBAI - 400 021
TEL: (91-22) 6637 0031, 66559701
FAX: (91-22) 6655 9705EMAIL:
USAKOCHHAR & CO. LLC
300 VILLAGE GREEN CIRCLESUITE 201
SMYRNA / ATLANTA , GA30080Phone: +1 770.434.0715Fax: +1 770.438.6172
EMAIL:[email protected]
GURGAON OFFICE2ND FLOOR, TOWER-A
TECHNOPOLIS BUILDINGMAIN SECTOR ROAD
SECTOR 54GURGAONHARYANA
Manishi [email protected]
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DOING BUSINESS IN INDIADOING BUSINESS IN INDIA
This entire presentation provides only an overview and should not beThis entire presentation provides only an overview and should not beconstrued as a legal representation and or advice.construed as a legal representation and or advice.
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A gateway into IndiaA gateway into India
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INDIA IS NO LONGER, ONLY KNOWN AS THE LAND OF SNAKE
CHARMERS AND TAJ MAHAL
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INDIA TODAY IS ALSO SYNONYMOUS TOINDIA TODAY IS ALSO SYNONYMOUS TO
OUTSOURCING, etcOUTSOURCING, etc
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INDIA MOVES INTO THE BIG THREEINDIA MOVES INTO THE BIG THREE
The Largest Economies in 2050
Source: Goldman Sachs
Source: Goldman Sachs Model Projections
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Ch US In Jpn Br Russ UK Ger Fr It
India$27 Trillion
by 2050
GDP(US$ trillion)
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INDIA AT A GLANCEINDIA AT A GLANCE
Demographics:
7th largest country in the world and 2nd largest in Asia with an area of
3.29 million sq. kms
29 States and 6 Union Territories
Population - 1.1 billion (approx.)
18 major languages spoken in India and over 1600 regional dialects.
English is the second major language spoken in India and is the
preferred business language. English is also the official language of the
judiciary
India has approx. 45,974 newspapers, including 5,364 daily newspapers
published in over 100 languages
Political set up:
Worlds largest practicing democracy
Govt. set to complete 5 yrs
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ECONOMY SNAPSHOTSECONOMY SNAPSHOTS
2 9 3 2 3 84 2
5 47 4
1 1 91 4 0 18 0
0
5 0
10 0
15 0
20 0
FY9
8
FY9
9
FY0
0
FY0
1
FY0
2
FY0
3
FY0
4
FY0
5
FY0
6
F o re x R e s e r v e s
4th largest economy (in PPP terms)
9.8
5.1
3.2
2.9 2.
1 1.4
1.4
1.4
0
2
4
6
8
10
1
2
US
Ch
Jap In
d
Ger
It
Uk F
r
(US$
tn)
Source: World Bank
Strong foreign exchange reserves
Source: www.indiastat.com
GDP Trend
0
1
2
3
4
5
6
7
8
9
10
2003 2004 2005 2006 2007
GDP
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MERGERS & ACQUISITIONS TRENDS - 2006MERGERS & ACQUISITIONS TRENDS - 2006
Source : Grant Thornton
Cross Border & Domestic deals
Value (USD mn)
2005 2006
Domestic 6848..01 4990. 87
Inbound 5173. 93 5399. 75
Outbound 4298. 52 9914 .15
Cross-Boarder 9472. 45 15313 .90
Total 16320.46 20304.77
Volume
Domestic 151 214
Inbound 56 76
Outbound 136 190
Cross-Boarder 192 266
Total 343 480
Average (USD mn)
Domestic 45..35 23 .32
Inbound 92. 39 71 .05
Outbound 31. 61 52.18
Cross-Boarder 49. 34 57.57
Total 47. 58 42.30
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MERGERS & ACQUISITIONS TRENDS - 2007MERGERS & ACQUISITIONS TRENDS - 2007
The M&A activity in the year 2007 has commenced with a total value ofabout USD 37 billion, which is about twice the deal value for the year 2006
The first 2 months of 2007 have witnessed 102 M&A deals with a totalvalue of about $ 36.80 billion as against 480 deals with a value of $ 20.30billion in 2006
Inbound cross border deals 21 with a value of $ 15.18 billion andoutbound cross border deals 40 with a value of $ 21 billion (about 41domestic deals)
Significant Outbound acquisitions: By Indian companies in the first 2months of 2007, include, acquisition of Corus, an Anglo-Dutch steelmaker by Tata Steel for $ 13.65 billion, Hindalcos acquisition of Novelisfor nearly US$ 6 bn and Aban Lloyds stake in Sinvest ASA of 39.50%
SignificantInbound acquisitions: Vodafones acquisition of Hutchs stakein Hutchinson Essar and Mittal Investments stake in Guru Gobind SinghRefineries
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ADVANTAGE INDIA
GLIMPSE OF REFORMS
S.No Particulars 1991-2000 2000-2007
1 Industrial Licensing Compulsory Industrial Licenses required for 18industries
Economy opened for liberalization
Now Compulsory licensing required onlyfor 5 industries
2. Exchange ControlRegulations
Under the Foreign Exchange Regulation Act(FERA), Reserve Bank of India (RBI) approval
required for foreign exchange transactions
Dividend Balancing introduced
INR not convertible
Foreign Exchange Management Act(FEMA) replaced FERA
Dividend Balancing abolished
INR progresses towards full convertibility
3. FDI Policy Controlled flow of FDI in India.
100% FDI allowed only in limited sectors
India has the most liberal and transparentFDI policy among the emerging economies
FDI upto 100% allowed, without any priorapproval in nearly all sectors.
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ADVANTAGE INDIA
4. Fiscal Reforms The peak rate of customs duty initially onseveral items was over 200% in 1991. Later onreduced to 65% in 1994 and 40% in 1999.
Corporate tax rates prevailed @ 35% fordomestic companies and 48% for foreign
companies in 1999
Peak Customs duty reduced to 10%
Customs duties to be aligned withASEAN levels
VAT introduced
Revenue deficit to be brought to zeroby 2008
Corporate Tax rate reduced to 30% fordomestic companies and 40% forforeign companies
5. Trade Policy Trade policy was characterized by high tariffs
and import restrictions.
Limited import of consumer goods subject toimport licenses
Average tariff rates gradually declined fromapprox. 85% in 1993-94 to 25% in 2002-03
Most items are now on Open General
License (OGL)
The average tariff rate is broughtdown from more than 16 % in 2002-03to 15 % by 2006-07
GLIMPSE OF REFORMS
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ADVANTAGE INDIALarge and Expanding Domestic market, emerging middle class Large and growing population of over 1 billion people of which around 300 million are
estimated to be the middle class consumers, who have rapidly growing purchasing power
The domestic demand for goods and services is set to double over the next ten (10) years incomparison to the period from 1998 to 2007
Young and highly skilled human capital
Large pool of highly skilled, low cost and English speaking labor
54% of the population is less than 25 years of age
As per World Economic Forum (WEF) report titled Global Competitiveness Report 2005-06,India will have a relatively lower number of elderly people by 2025 in comparison to affluentcountries (Approximately 2/3rd of China's aggregate population will be in the 65+ age group)
Pool of 23 million professionals doctors, graduates, masters and engineers increasing bynearly a million every year
As per the above WEF report, India ranks # 1 in the availability of scientists and engineers
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ADVANTAGE INDIA
Large Research & Development capabilities
More than 100 of the Fortune 500 companies such as Microsoft, Google, Intel, Yahoo, IBM
etc., and many pharma companies have established R&D Centres in India
IT &ITES Industry likely to maintain high growth and is expected to generate revenues ofUSD 62 billion by 2008 and USD 148 billion by 2012 (NASSCOM-KPMG estimates)
According to market analysts, the Indian biotech market, estimated at USD 0.5 billion in2003 is expected to grow to around USD 5 billion by 2010
Rising Disposable Income
Per capita income has grown at 13% compounded annual growth rate over the last 10 years
Peak personal income tax rates are down from 50% to 30%
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ADVANTAGE INDIA
Rising Affordability
Urbanization: Shift from low productive farm jobs to manufacturing and services Rising per capita income, improved affordability & changing lifestyles
Under leveraged consumers and benign interest rates are further aiding the consumption
By 2009-10, over 500 million Indians are expected to have a household income of
< USD 10,000 per annum (in PPP terms)
Abundant natural resources and raw materials
Indias reserves of coal, iron ore, manganese, bauxite and chromium are among the largestin the world
Though an importer of petroleum and natural gas, India has abundant coal reserves and alarge untapped hydroelectric power potential of an estimated 150,000 MW
India is the worlds largest producer of milk, sugarcane and tea and the second largest
producer of rice, fruit and vegetables
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EVOLUTION OF FOREIGN DIRECTEVOLUTION OF FOREIGN DIRECT
INVESTMENT (FDI) POLICYINVESTMENT (FDI) POLICY
Pre 1991
1991
1997
2000
2000-07
Allowed selectively up to40%
Up to 74/51/50% in 112 sectors under the
Automatic Route, 100% in only a few sectors
Up to 100% under Automatic Route in all sectors excepta small negative list
More sectors opened: Equity caps raised in many other sectors.Procedures simplified
FDI Policy Liberalization
FDI up to 51% allowed under theAutomatic Route in 35 Priority sectors
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CURRENT FDI POLICY
INVESTMENT IN INDIA
AUTOMATIC
ROUTE
GOVERNMENT
APPROVAL ROUTE
In cases of investments not
eligible under Automatic
Route
Investment is subject to
eligibility conditions under
FDI Policy such as
prescribed sectoral equity
caps
Except in certain cases, all
foreign investments eligible
under this route
Investment is subject to
eligibility conditions under
the FDI Policy such as
prescribed sectoral equity
caps, etc.
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CURRENT FDI P LICY
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CURRENT FDI P LICYAutomatic RouteAutomatic Route
FDI up to 100% is allowed under Automatic Route in alactivities except the following which require prior approval of th
Government:
All proposals falling outside the prescribed sectoral equity caps
Proposal in which the foreign investor has an existing financiaor technical collaboration in India in the same field. This irestricted by Press Note 1/2005
All proposals that require Compulsory Industrial License
Manufacture of items exclusively reserved for small scale sectowith more than 24% FDI
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CURRENT FDI POLICY
FDI NOT ALLOWEDFDI NOT ALLOWED
No FDI permitted in the following sectors:
Retail trade (except single branded product
retailing)
Atomic energy
Gambling & bettingLottery businessAgricultural or Plantation activities (except tea
plantations, horticulture, cultivation of
vegetables etc. under controlled conditions)Real Estate business or construction of farm
houses (except development of townships, hotels
etc.)
Trading in transferable development rights
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CHANGES PROPOSED TO FDI POLICY
Insurance Sector
To increase FDI in Insurance sector from 26% to
49%
Asset reconstructions companies To allow FDI in Asset Reconstruction Companies
beyond 49%
Petroleum Companies
To remove requirement of 26% divestment in
Indian subsidiaries in five (5) years
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CHANGES PROPOSED TO FDI POLICY
Aviation Sector
To increase FDI beyond 49%
Equity cap to be raised to 100% for seaplanes, helicopters and for
setting up maintenance, repair and overhaul (MRO) facilities
Equity cap to be raised to 74% for cargo operations, charters and
other non-scheduled operations
Organized Retail Sector
To increase FDI cap beyond 51% in single-brand retail
Currently no FDI is permitted in multi-brand product retail
To consider FDI in multi-brand retail of sports goods, stationery
and electronics
CURRENT FDI POLICY
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CURRENT FDI POLICY
FOREIGN TECHNOLOGY COLLABORATIONPOLICY
Foreign Technology Agreements are allowed under theAutomatic Route subject to the following conditions:
Payment of lump sum fee not exceeding US$2 million
Royalty @ 5% on domestic sales and 8% on exports,net of taxes
No restriction on the duration of royalty payments onall foreign technology collaboration agreements
Proposals falling outside the above parameters requireprior Government approval
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CURRENT FDI POLICY
TRADE MARK COLLABORATION POLICY
Trade Mark Collaboration Agreements allowed under the
Automatic Route subject to the following conditions:
Royalty upto 2% on exports and 1% on domestic salespermitted for use of trademarks and brand name, withouttechnology transfer
No restriction on the duration of the royalty payments onall foreign technology collaboration agreements coveredunder automatic route
Proposals falling outside the above parameters requireGovernment approval
SPECIAL INVESTMENT OPPORTUNITIES
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SPECIAL INVESTMENT OPPORTUNITIESSpecial Economic Zone (SEZ)
POLICY: Duty free zones, deemed foreign
territories
100% FDI under automatic
route permitted in almost all
manufacturing activities
Transfer of goods fromDomestic Tariff Area (DTA) to
SEZ treated as exports
Units required to be net foreign
exchange earners within 5 years.
A SEZ could be set up in the
public, private or joint sector
INCENTIVES SEZ units eligible for Income
Tax holidays for 15 years (100%
exemption for first five years and50% exemption for the next fiveyears)..
SEZ developers operatingnotified SEZs before March 31,2006 are eligible for tax holidaysfor 10 years and not required topay Minimum Alternate Tax
Duty free import andprocurement of capital goods,raw materials, consumables andspares
Exemption from payment ofCentral sales tax
Exemption from service tax forproviding services to SEZ units
Full freedom of subcontracting Facility to retain 100% of the
foreign exchange receipts in theexport earners foreign currency(EEFC) account
No routine examination ofcustoms
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DOING BUSINESS IN INDIA
Procurement of approval for proposed name of company fromthe concerned Registrar of Companies (ROC)
Preparation and submission of proposed companys MOA &AOA along with Forms 1, 18 & 32
+relevant documents
Registration of Company upon receipt of Certificate of Incorporation from the ROC
NOTE: A private limited company could commence business immediately upon receipt of
Certificate of Incorporation. However, a public company can commence business only after
receiving the Carry on Business License from the ROC
INCORPORATION OF AN INDIAN COMPANY
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BUSINESS FORMS
As an un-incorporated entity
Branch Office Liaison Office Project Office
As an incorporated entity
Joint Venture Wholly Owned subsidiary
Other modes Distribution/Agency Arrangements
Franchising
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UNINCORPORATED ENTITYBRANCH OFFICE
Regulatory Framework:
Prior approval of RBI Required No approval required for a Banking company and Insurance company if prior approval
obtained under Banking Regulation Act or Industries Regulation Development Act (IRDA)
No approval required to establish a branch office in SEZ to undertake manufacturing andservices activities
Remittance of winding up proceeds permitted subject to prior approval of RBI
Treated as an extension of foreign corporation and therefore taxed at the same rates as a
foreign company
Permitted Activities Export/Import of goods
Rendering professional or consultancy services
Carrying out research work in which parent company is engaged
Promoting technical or financial collaboration between Indian companies and the parent or
overseas group company Representing the Parent company in India and acting as buying/selling agent in India
Rendering services in IT and development of software in India
Rendering technical support to products supplied by parent/group companies
Undertaking activities of Foreign airlines/shipping companies
Manufacturing by a branch located in SEZ
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UNINCORPORATED ENTITY
LIAISON OFFICE
Regulatory Framework Prior approval of RBI required Approval is initially granted for 3 years. Can be extended subsequently with
the permission of RBI The entire expenses of a liaison office are required to be met exclusively out of
the funds received from abroad through normal banking channels.
Remittance of winding up proceeds permitted subject to prior approval of RBI No Income-Tax applicable
Permitted Activities Only to act as a communication channel between parent company and Indian
companies
Representing in India the parent company/group companies Promoting export/import from or to India Promoting technical/financial collaborations between parent/group companies
and companies in India
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..UNINCORPORATED ENTITY
PROJECT OFFICE
Regulatory framework
Prior approval of RBI not necessary
Contract to execute a project in India must exist
The project should have been approved by an appropriate authority
The project should be financed from abroad Remittance of profits earned permitted
Remittance of winding up proceeds permitted subject to prior approval of RBI
Treated as an extension of foreign corporation and therefore taxed at the same rates as
foreign company.
Permitted Activities
Only activities relating and incidental to execution of a project
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INCORPORATED ENTITYJoint Venture Can be entered into where 100% FDI permitted or where a cap exists in case of FDI.
Company can be incorporated as a private company or public company
No approval required for repatriation of dividends
Treated as a domestic company and therefore taxed at rates applicable to domestic companies
Wholly Owned Subsidiary
Established in sectors where 100% FDI is permitted
Company can be incorporated as a private company or a public company
WOS is preferred mode of establishing business as the foreign investor can exercise maximumcontrol
No approval required for repatriation of dividends
Treated as a domestic company and therefore taxed at rates applicable to domestic companies
BASIC COMPARISON BETWEEN PRIVATE
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BASIC COMPARISON BETWEEN PRIVATE
COMPANY AND PUBLIC COMPANY
S.NO PARTICULARS PRIVATE COMPANY PUBLIC COMPANY
1. Minimum number of shareholders 2 7
2. Maximum number of shareholders 50 Unlimited
3. Minimum number of directors 2 3
4. Maximum number of directors 12 12(can be increasedwith the
Governmentapproval)
5. Minimum paid up capitalrequirement
INR 100,000 (approx.US$ 2200)
INR 500,000 (approx.US$ 11000)
6. Right to transfer shares Restricted Unrestricted
7. Invitation to public to subscribefor shares
Not allowed Allowed
8. Invitation of deposits form
persons other than members,directors and their relatives
Not Allowed Allowed
COMPARATIVE SUMMARY OF BUSINESS FORMSCOMPARATIVE SUMMARY OF BUSINESS FORMS
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COMPARATIVE SUMMARY OF BUSINESS FORMSCOMPARATIVE SUMMARY OF BUSINESS FORMS
S.No. Particulars Liaison office (LO) Project Office (PO)/Branch Office(BO)
JV/WOS
1. Approvals Required Prior Approval of RBI Prior approval of RBI required for BO. Noprior approval required for PO, subject tofulfillment of certain conditions
If falls under Automatic route, only an intimation tobe given to RBI. Otherwise FIPB approval to beobtained
2. Operation Restrictions Limited Limited Unlimited as per charter documents and FDI Policy.
3. Operation Funds Local expenses can be met only outof inward remittances received formabroad through normal bankingchannels
Local expenses can be met out of inwardremittances or from local earnings
Funding may be through equity infusion orborrowings (local as well as overseas) or internalaccruals
4. Compliance (including
annual ) under CompaniesAct, 1956
Registration and annual filings of
accounts, etc.
Registration and annual filings of accounts,
etc.
Company to be incorporated under the Companies
Act, 1956. Substantial compliance requirementsincluding annual filings.
5. Annual compliance under FEMA
To file activity report, profit & lossaccount and balance sheet everyyear.
To file activity report, profit & lossaccount and balance sheet every year
To provide particulars of the transaction undertakenat the time of remittance (to the concerned banks inIndia)
6. Annual compliance under Income Tax Act, 1961
NIL income return to be filed
Withholding tax to be deducted andreturn to be filed on quarterly andannual basis
To file return of income in respect ofBO/PO operations.
Withholding tax to be deducted and returnto be filed on quarterly and annual basis
Effective tax rate is 42.23%. No further taxon repatriation
To file return of income on annual basis.
Effective tax rate is 33.99%. Dividend DT at the endof the Indian company is 16.995% on payment of
dividends.
7 Permanent Establishment Not regarded as PE in India under DTAA unless its activities couldheld it as engaged in commercialactivities
BO is regarded as PE in India of theforeign company under DTAA.
PO could be considered a PE in India
May not be considered as PE in India under DTAA.
8. Closure Prior RBI approval.
Certain procedures to be complied
with.
In case of BO prior RBI approval required.Certain procedures to be complied with.
In case of PO no RBI approval
Permission of High Court required. Closure is timeconsuming
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EASE OF DOING BUSINESS IN INDIA
Starting a Business
It now takes about 35 days to register a company in India as compared to 71 daysa year ago and 89 days in January 2004
Employing workers
India ranks 112th worldwide on the ease of employing workers
Registering Property
In India it can takes only 35 days to register property. India is placed among theupper half of South Asian Countries
Getting Credit
With a robust banking system, India ranks 65th on the ease of getting credit.Much higher than other South Asian Countries
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EASE OF DOING BUSINESS IN INDIA
Protecting Investors
Ranks 33rd worldwide. It beats the South Asia and East Asia average of 5
Paying Taxes
India ranks 158th on ease of paying taxes. Compared with other countries
outside the region, Indias tax regime is less burdensome. For e.g. in China,businesses spend 872 hours per year on complying with tax requirements, inBrazil, businesses are required to spend 2,600 hours per year, whereas inIndia, businesses spend 264 hours per year
Trading across borders
In India, it can take up to only 17 days to export and 22 days to import. Thisis at par with China, where it takes 18 days to export goods
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TAXATION REGIME IN INDIA
Direct Taxes
Income Tax
Personal Income tax
Corporate Tax
Dividend Distribution Tax
(DDT)
Fringe Benefit Tax (FBT) Capital Gains Tax
Wealth tax
Securities transaction tax
Indirect Taxes
Custom Duties
Service Tax Sales Tax/Value Added Tax
Central Excise Duty
State taxes
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PERSONAL INCOME TAX RATES
Individuals are liable to tax in India as under:
# Where the taxable income exceeds USD 22,200, a surcharge @ 10 percent would be
levied on the total tax payable
Income Slab Effective tax rate (includingsurcharge of 10% and
educational cess of 3%)
Up to USD 2,200( in case of women up to USD3000)
NIL
USD 2,200 to USD 3,300 (in case of women USD3000 to USD 3,300)
10.3%
USD 3,300 to USD 5,500 20.6%
USD 5,500 to USD 22,200 30.9%
Above USD 22,200 33.99% #
CORPORATE TAX RATES
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CORPORATE TAX RATES
Domestic company 33.99% (Income tax: 30% plus
surcharge: 10% plus cess: 3%)Foreign Company 42.23% (Income tax: 40% plus
surcharge: 2.5% plus cess: 3%)
Fringe Benefit Tax 33.66% (FBT: 30% plus cess: 3%)
Dividend Distribution Tax 16.995% (DDT: 15% plus surcharge:10% plus cess: 3%)
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DOUBLE TAXATION RELIEF
India has entered into DTAA with 69 countries including USA,
U.K., Japan, France, Germany, Singapore, Mauritius etc.
Statutory recognition has been given to Double TaxationAvoidance Agreements (DTAAs)
The tax payer has the privilege to avail provisions of either the
DTAA or domestic tax laws
For countries that have DTAAs with India, bilateral relief isavailable to a resident in respect of foreign taxes paid
LEGAL SYSTEM IN INDIA
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LEGAL SYSTEM IN INDIA
SUPREME COURT OF INDIAOriginal Jurisdiction
Appellate Jurisdiction
21 STATE HIGH COURTS
Appellate Jurisdiction
Writ Jurisdiction
Supervisory Jurisdiction
DISTRICT COURTS ANDSESSIONS COURTS
OTHER COURTSAND TRIBUNALS
Company Law Board
Central Administrative Tribunal
State Administrative Tribunal
Income Tax TribunalConsumer Courts
Labour Courts
CIVIL CRIMINAL
DIST. JUDGE/ADDL.DIST. JUDGE
CIVIL JUDGES
SESS. JUDGE/ADDL.SESS. JUDGE
METROPOLITAN
MAGISTRATE/
JUDICIAL MAGISTRATE
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INTELLECTUAL PROPERTY LAWS
Strong IP regime in India for Trade Marks,
Copyrights, Industrial Designs and Patents
IP laws are WTO compliant and conform to
international standards of TRIPS
Indian courts provide quick and adequate injunctive
relief against unauthorized use and/or infringement of
Trade Marks and other IP
PATENT DESIGN COPYRIGHT TRADEMARK
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PATENT DESIGN COPYRIGHT TRADEMARK
What isprotected?
Functional features ofa process, structuralfeatures of a Machineor a manufactureditem, composition ofmatter producingsynergistic effects
Ornamentalpattern, outerdesign for articleof manufacture
Writings,photographs,music, labels,works of art,computerprogrammed,paintings,sculpture,drawing,engraving,
dramatic work,scenicarrangement, oracting form whichis fixed in writingor otherwise.
device, brand,heading, label,ticket, name,signature, word,letter, numeral,shape of goods,packaging orcombination ofcolors or anycombination
thereof .
Criteria forProtection?
New and nonobvious
New and notpublished
Originality Should be capableof identifying anddistinguishing themark.
PATENT DESIGN COPYRIGHT TRADEMARK
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goods andservicesProprietor.Should not
conflict with aprior Registeredor pending mark.
How Rights
are obtained
An application with
a completespecification andclaims in theprescribed manner isto be made with theappropriate fee
An application in
the prescribedmanner is to bemade with theappropriate fee.
1. Automatic
upon creation.2. By applyingCopyright notice(c) 2004 (Year ofthe firstpublication) if
publicly
1. By Common
Law: Adoption &Use.
2. An applic-
ation in theprescribedmanner is to be
made with theappropriate fee tothe Registrar ofTrade Marks.
PATENT DESIGN COPYRIGHT TRADEMARK
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PATENT DESIGN COPYRIGHT TRADEMARK
distributed. Anapplication in theprescribed manner
is to be made withappropriate fee tothe Registrar ofCopyright
Marking Goods may be MarkedPatent No. (After Grant)
IND PAT No. -
Goods maybe markedDesign No.0000/year(After Grant).
2004 Use forRegistered TradeMark and forunregistered.
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PATENT DESIGN COPYRIGHT TRADEMARK
Life 20 years from the
date of Patent (filingof completespecification),
10 years subject
to renewal for 5years only.
Valid for 60
years from dateof death ofauthor.
Common Law:
As long asproperty used as amark.Registration isperpetual subjectto renewal every
10 years.
Test ofinfringement
Making, using orselling Patentedarticle or composition
(not a drug) orcarrying on a processembodying theclaimed invention.
Designs whichlook alike to theeye of an
ordinaryobserver.
Substantialportion copied.Similarity,
PublicPerformancewithout license.
Likelihood ofConfusion,mistake or
deception.Deliberatecopying?
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PATENT DESIGN COPYRIGHT TRADEMARK
InternationalProtection
a. Patent Co-operation treaty(PCT )
b. Paris convention
A priority can beclaimed inmember WTO
countries.
IndianCopyrights arevalid in countries
which aremembers of theBerneConvention andUniversalcopyright
convention
Indian Trademarksare not valid in anyother country just
like ForeignTrademarks are notvalid in India,unless used onapplied for/grantedin India.
Protection of wellknown trademarksagainstmisappropriation.
LABOUR LAWS
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LABOUR LAWS
Jurisdiction Under the Constitution of India, labour is a subject in the Concurrent List where both
Central & State Governments are competent to enact legislation subject to certain mattersbeing reserved for the Centre
Most labor law legislations in India are Central legislations that apply across India. Statesare generally empowered to pass amendments to these laws with specific applicability to therelevant States
Procedural and compliance requirements vary from State to State
Scope of application
All labor laws broadly cover the following aspects and are governed by the legislationsmentioned herein below: (only the significant legislations are mentioned)
Relations with workmen (employees)
The Industrial Disputes Act, 1947
The Trade Unions Act, 1926
Wages/Remuneration of employees
The Minimum Wages Act, 1948
Payment of Wages Act, 1936
The Equal Remuneration Act, 1976
LABOUR LAWS
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LABOUR LAWS
Working conditions
The Factories Act, 1948 or State level Shops and Commercial Establishments Acts
The Industrial Employment (Standing Orders) Act, 1946
The Contract Labor (Abolition & Regulation) Act, 1970
Statutory Benefits and Compensation Payment of Bonus Act, 1965
Payment of Gratuity Act, 1972
Employees Provident Fund and Miscellaneous Provisions Act,
1952
Employees State Insurance Act, 1948
Workmens Compensation Act, 1923
Maternity Benefit Act, 1961
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Thank you
Manishi [email protected]