Alliance Data Systems, Inc. (Alliance Data), a leading provider of data-driven marketing and loyalty solutions, sought to establish a presence in India by setting up subsidiaries focused on delivering marketing and communications services. These subsidiaries, which facilitated Alliance Data’s expansion into the Indian market, were subsequently sold as part of a strategic divestment. Majmudar & Partners provided comprehensive legal assistance throughout this process, ensuring compliance with Indian regulations and facilitating a smooth operational setup.

Facilitating the Transaction

Majmudar & Partners played a pivotal role in the establishment of Alliance Data Systems’ Indian subsidiaries by advising on:

• Entity Incorporation: Advised on the optimal legal structure for the Indian subsidiaries, ensuring compliance with the Companies Act, 2013, and other relevant regulations.
• Regulatory Compliance: Guided the company through India’s foreign direct investment norms, ensuring adherence to the Foreign Exchange Management Act, 1999 and obtaining necessary approvals from the Reserve Bank of India.
• Tax Advisory: Provided insights into the tax implications of establishing subsidiaries in India, including corporate taxation, transfer pricing, and benefits under applicable Double Taxation Avoidance Agreements (DTAAs).
• Operational Licensing: Assisted in obtaining requisite licenses and permits for the provision of marketing and communications services, ensuring compliance with local laws and industry-specific regulations.

Alliance Data’s successful establishment of its Indian subsidiaries enabled the company to expand its global footprint and tap into the burgeoning Indian market for marketing and communications solutions. Majmudar & Partners’ expert legal guidance ensured that the operations were set up in compliance with Indian laws, providing a solid foundation for the company’s growth in the region.

Majmudar & Partners specializes in assisting international companies with market entry strategies, regulatory compliance, and operational setup in India. Contact us today to learn how we can support your business expansion into the Indian market with tailored legal solutions.