CPA Australia Limited (CPA Australia), a leading professional accounting body with over 170,000 members globally, including more than 1,100 in India, sought to expand its presence in India by appointing an agent to promote and market its activities. Majmudar & Partners provided comprehensive legal counsel on the tax, permanent establishment (PE), and regulatory implications of this strategic move.

Facilitating the Transaction

Majmudar & Partners’ role encompassed:

• Tax Analysis: Assessed the tax obligations arising from appointing an Indian agent, ensuring compliance with Indian tax laws and international tax treaties.
• PE Risk Evaluation: Examined whether the agent’s activities will constitute a PE for CPA Australia in India, which could subject the organization to Indian corporate taxes.
• Regulatory Compliance: Advised on the legal and regulatory requirements for foreign entities operating in India, including necessary registrations and adherence to the Foreign Exchange Management Act, 1999.
• Contractual Structuring: Drafted and reviewed agreements to clearly define the agent’s role, responsibilities, and limitations, mitigating potential legal and tax risks.

By leveraging Majmudar & Partners’ expertise, CPA Australia successfully navigated the complexities of entering the Indian market. The firm’s guidance ensured that CPA Australia’s expansion was structured efficiently, minimizing tax liabilities and regulatory hurdles.

Majmudar & Partners is equipped to provide strategic advice on tax, regulatory, and compliance matters to ensure your business’s success in India. Contact us for tailored legal solutions that facilitate seamless entry and operations in the Indian market.