[Opinion] Write-off of Overseas Investment – Liquidation vs Inbound Merger
- Blog|News|FEMA & Banking|
- < 1 minute
- By Taxmann
- |
- Last Updated on 15 February, 2024
Latest from Taxmann
Aditya Sriram R – [2024] 159 taxmann.com 309 (Article)
1. Setting Up Overseas
In the era of globalization, Indian entrepreneurs have expanded their horizons by establishing entities overseas, driven by factors such as market opportunities, technological advancements, competitive advantages, and access to capital. However, when faced with the need to wind up these overseas entities that are formed as wholly owned subsidiary, it is crucial to explore efficient options to do so.
2. Winding up/consolidation of the overseas subsidiary
Aside from the continued losses or non-feasibility, the following are some of the key reasons that warrants liquidation of the overseas entity:
(a) Overseas subsidiary or inter holding company structure becomes redundant.
(b) Acquisition by an Indian headquartered company resulting in consolidation of entities in the same jurisdiction.
(c) Acquisition of an Indian entity by an MNE having large global presence needing consolidation.
(d) Unfavourable economic or political environment.
Two major Options available for winding-up/consolidation
Click Here To Read The Full Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
