|Event Date||Tue May 18 EDT (5 months ago)|
Investment into companies can typically be in the form of equity or debt funding.
However, debt funding is often preferred over equity funding as it allows the company to retain full control while securing funds for necessary expansion in India.
Other benefits of debt funding include a structured repayment plan, downside protection, and efficient tax planning options for investors.
Debt funding in India requires careful consideration of various laws and regulations – such as compliance under Foreign Exchange Management Act (FEMA), applicability of the International Financial Reporting Standards (IFRS) and enactment of the General Anti-Avoidance Rules under the Indian tax regime, among others.
Moreover, multiple options are available for foreign companies in India for securing funding. These options can broadly be categorized intro long-term and short-term sources of finance, and include non-convertible debentures (NCBs), external commercial borrowings (ECBs), working capital loans, among a host of other alternatives.
• Overview of debt funding in India.
• Analysis of funding options – NCBs, ECBs, etc.
• How to channelize funds into the Indian entity.
• Tax implications – corporate tax, DTAA, capital gains tax, etc.
• Common issues and redressal mechanisms in India.
Senior Associate, Business Advisory Services