1. Doing Business in INDIA N.K. SUKHADIA & Co., Chartered Accountants Advisory. Tax. Assurance

2. N.K.Sukhadia & Co., Chartered Accountants2 Basic Statistics of INDIA Land: 3.29 million square kilometers Population: 1,150,000,000 (1.15 billion) Languages: 22 languages recognized by Indian Constitution Currency: Indian Rupee (INR 1 = Paise 100) Time Zone: GMT +5.30 hours FDI in 2009: INR 131,237 crores (US $ 27,098 million)

3. N.K.Sukhadia & Co., Chartered Accountants3 Forms of Business Organization in INDIA Business Organizations Sole Proprietorship Partnership FirmLimited Liability Partnership Private Limited Company Public Limited Company Unincorporated Entities

4. N.K.Sukhadia & Co., Chartered Accountants4 Obligations of Business Organization in INDIA Business Organization Direct Tax Laws Indirect Tax Laws Exchange Control Regulations Corporate Law Labour/ Misc. Laws

5. N.K.Sukhadia & Co., Chartered Accountants5 Obligations of Business Organization in INDIA (contd.) 1. Various Tax Laws:  Income Tax Act, Wealth Tax Act, Central/State Value Added Tax, Service Tax/Excise Duty, Profession Tax, Custom Duty etc  Obtaining Registration with the respective departments  Filing Returns  Current Corporate Tax rate = 30%

6. N.K.Sukhadia & Co., Chartered Accountants6 Obligations of Business Organization in INDIA (contd.) 2. EXCHANGE CONTROL REGULATIONS:  FEMA Act,FDI Policy/Press Notes, Notification and Circular issued by RBI  Complying with the above acts and notifications. 3.CORPORATE LAWS:  Companies Act, SEBI Act, etc.  Complying with the above acts and notifications.

7. N.K.Sukhadia & Co., Chartered Accountants7 Obligations of Business Organization in INDIA (contd.) 4. LABOUR/ MISC LAWS: a. Payment of Bonus Act b. Worksmen compensation act c. Industrial Dispute act d. Payment of gratuity act e. Indian contract act

8. N.K.Sukhadia & Co., Chartered Accountants8 DTAA’s with INDIA  India has Double Taxation Avoidance Agreements with almost 78 countries including United States of America and United Kingdom.  DTAA provisions to override Indian Income Tax Act.  DTA provides for relief of Tax and Credits in many cases.

9. N.K.Sukhadia & Co., Chartered Accountants9 Cost and Capital of Company 1. Private limited company: a. Minimum capital – INR 0.1 million (Euros 1550 app.) b. Minimum Statutory fees INR 7500/- (Euros 115 app.) c. Company Management Cost- variable to size and operations of the company.

10. N.K.Sukhadia & Co., Chartered Accountants10 Thank You