Lumiata, Inc., a U.S.-based healthcare analytics company, sought to streamline its operations by transferring ownership of its Indian subsidiary from individual stakeholders, i.e., a US employee and an Indian resident, directly to the parent company. Majmudar & Partners provided comprehensive legal assistance to ensure compliance with Indian tax laws and regulations throughout this ownership transition.

Facilitating the Transaction

Majmudar & Partners played a pivotal role in the successful transfer of ownership by undertaking:

• Transfer Pricing Analysis: Conducting a thorough assessment to ensure that the valuation of the ownership transfer adhered to the arm’s length principle, thereby complying with Indian transfer pricing regulations.
• Permanent Establishment (PE) Evaluation: Analyzing the potential PE implications arising from the ownership transfer to mitigate any unforeseen tax liabilities for Lumiata, Inc.
• Regulatory Compliance: Ensuring adherence to the Foreign Exchange Management Act, 1999 and other pertinent Indian regulations governing foreign investments and ownership transfers.
• Documentation Support: Assisting in the preparation and submission of requisite legal documents to Indian authorities to facilitate a seamless transfer process.

Through meticulous analysis and strategic guidance, Majmudar & Partners enabled Lumiata, Inc. to successfully restructure the ownership of its Indian subsidiary. This restructuring not only ensured compliance with Indian tax laws but also optimized Lumiata, Inc.’s operational efficiency in the Indian market.

Majmudar & Partners specializes in tax advisory and regulatory compliance for cross-border transactions in India. Contact us today to ensure your business transitions are seamless, compliant, and strategically optimized.