Pacific Industrial Development Corporation (PIDC), a global leader in advanced materials and specialty chemicals, recently undertook a strategic restructuring in India. This involved the closure of its existing Indian subsidiary, PIDC Advanced Materials India Private Limited (PIDC India), and the establishment of a new entity to continue its business operations in India. Majmudar & Partners provided legal advisory services, addressing complex Indian corporate and tax law issues throughout the process.
Facilitating the Transaction
Majmudar & Partners assisted PIDC with a seamless corporate restructuring process, including on the following aspects:
- Regulatory Compliance: Managed end-to-end regulatory obligations under Indian corporate and tax laws for the winding-up of PIDC India, ensuring a compliant and efficient process that complied with all statutory requirements.
- Tax Optimization and Strategy: Provided tax advisory to minimize the tax impact for PIDC, including optimizing the tax structure related to the establishment of the new subsidiary, aligning with PIDC’s broader tax strategy.
- Establishment of New Subsidiary: Guided PIDC with setting up a new subsidiary by providing comprehensive legal support, by drafting and finalizing necessary documentation and ensuring that all procedural requirements under the Companies Act, 2013 were duly followed.
- Foreign Investment Compliance: Ensured that PIDC’s foreign investment into the new entity was in strict adherence to the Foreign Exchange Management Act and applicable foreign direct investment norms, facilitating a smooth capital inflow to fund future operations.
PIDC’s restructuring initiative in India exemplifies the importance of a tailored approach to corporate transitions. With the guidance of Majmudar & Partners, the company successfully navigated the complexities of Indian corporate and tax law, facilitating a smooth transition to its newly established subsidiary.
Majmudar & Partners has a strong record in supporting complex corporate restructurings for global companies in India. Contact us today to learn how our legal expertise can streamline your corporate transitions and ensure compliance with Indian regulations.