Baidu (Hong Kong) Limited, a subsidiary of the leading Chinese multinational technology company Baidu, sought to establish a foothold in the Indian market by setting up a subsidiary. Majmudar & Partners was engaged to provide comprehensive tax advisory services to ensure compliance with Indian tax laws during this expansion.

Facilitating the Transaction

Majmudar & Partners played a pivotal role in Baidu’s entry into the Indian market by:

• Tax Structuring: Developing an optimal tax structure for the Indian subsidiary to minimize tax liabilities while ensuring compliance with local regulations.
• Regulatory Compliance: Advising on the necessary tax registrations and filings required for establishing a subsidiary in India.
• Transfer Pricing Advisory: Providing guidance on transfer pricing regulations to ensure that inter-company transactions between Baidu and its Indian subsidiary adhered to Indian laws.
• Permanent Establishment Risk Assessment: Evaluating potential permanent establishment risks and advising on strategies to mitigate unintended tax exposures.
• Withholding Tax Guidance: Clarifying withholding tax obligations on payments between the parent company and the Indian subsidiary.

Baidu’s establishment of an Indian subsidiary marked a significant step in its global expansion strategy. Majmudar & Partners’ in-depth understanding of Indian tax laws and regulatory frameworks ensured a seamless setup process, enabling Baidu to focus on its business operations in India.

Majmudar & Partners provides expert tax structuring and regulatory compliance services for global companies entering the Indian market. Contact us today to ensure your business expansion into India is seamless, compliant, and strategically optimized.