Is your corporate structure compliant?
Startups frequently externalize their holding companies ("flip") to attract international VC funding. However, poorly structured flips often unknowingly violate the Reserve Bank of India's strict Overseas Direct Investment (ODI) rules regarding "Round - Tripping" and trigger severe Permanent Establishment (PE) tax traps.
This engine analyzes your proposed corporate architecture—voting rights, IP allocation, and fund flows—to flag regulatory vulnerabilities.
Disclaimer: This tool provides preliminary regulatory risk exposure guidance and does not constitute formal legal advice. Cross - border restructuring requires bespoke legal structuring to avoid severe regulatory penalties.
The India Cross - Border Regulatory Matrix
1
FEMA & RBI (Round - Tripping)
Strict scrutiny on structures where an Indian resident's foreign entity invests back into India. Limits on layers of subsidiaries.
2
Income Tax (POEM & PE)
If major decisions are made in India, the foreign entity's global income may be taxed in India.
3
Transfer Pricing (IP Shifting)
Transferring Indian-developed IP to a foreign HoldCo without arm's-length valuation invites massive tax penalties.
