WWW.NORTECHTRINITY.COM Commercializing Technologies
Aug 15, 2015
Nortech trinity is a business advisory, operations, and investment company headquartered in India, with offices in US and representation in multiple countries. We enable foreign and domestic investors to navigate the local business environment, and operate in new markets and verticals to achieve exponential growth. Our single window solution delivers the 3i
insight+, investment & implementation
• Commercializing Technologies
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Sectors
Transport, Supply Chain & Logistics
PPP & Infrastructure
CSR, Developmental & Policy Advisory
Technology
Agri/Food Processing & Cold Chain
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The 3i
Our iNSIGHT+ vertical delivers a
comprehensive suite of research, consulting, transaction advisory market entry, situational handholding and related solutions
Our iMPLEMENTATION vertical provides the
full strategic and operational support of JCurve and our network partners for seamless project management
Our iNVESTMENT vertical manages
proprietary capital enabling us to allocate private equity based on our convictions and take a long term perspective, for participating in, or facilitating cross border investments, partnerships and joint ventures
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Integrated solutions
Through our local and international network of advisors, strategic partners, and domain experts we craft a combination of soft and physical solutions that are optimal for your business goals.
• Market Entry and Project Management
• Organisational Capabilities Change and Alignment
• Mergers and Acquisitions
• Finance, Restructuring and Investments
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If you have the requisite resources, offerings and intent for expansion in emerging markets, but are unfamiliar with the geography or local nuances, Nortech Trinity'sUmbrella Service of representation and agency provides everything.
• Liaison Office
• Representation
• Communications and PR
• Asset Creation and Asset Management
• Operations Support
• Supply Chain & Logistics
• Project Development
Market Entry &Representation
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Nortech Trinity is mandated to take equity positions in SPVs in new ventures and sectors where our involvement can create and realize inflection points. We build strategic partnerships that can add value in our existing operating businesses and operating companies. We facilitate strategic alliances- from matchmaking to transaction advisory and end-to-end execution.
• Private equity• Strategic partnerships• Transaction advisory
Joint Ventures
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WORLD’S LOOKING AT INDIA
• “Congrats to @Narendra Modi and BJP,” “Look forward to working w/you/growing shared prosperity/security w/world’s
largest democracy.”
- John F. Kerry, Secretary of State , US
• “Congratulations Modi on achieving a great victory. expressed hope that India and Sri Lanka will work closely and further
strengthen their strong ties.”
- Mahinda Rajapaksa , President , Sri Lanka
• “Hope that Australia and India will work closely to further strengthen the bilateral relationship during Modi's stewardship of
the Indian Government. Looking forward to meeting Mr. Modi during the upcoming G-20 summit to be held in Australia.”
- Tony Abbot, Prime Minister, Australia
• “Congratulations Mr. Modi on emphatic electoral victory. Extended an invitation to Modi to visit UK on his way to the BRICS
summit to be held in August, 2014 in Brazil.”
- David Cameron, Prime Minister, Britain
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INDIAN ECONOMYINDIAN ECONOMY
•FDI equity Inflows (April, 2013 to March, 2014): US$ 24,299 million
• World Bank sees 6.7 per cent GDP growth for India by 2015.
•Top Investing Countries FDI Equity Inflows: Mauritius, Singapore, UK, Japan, USA, Netherlands and Cyprus (as on March 2013)
• India is the third biggest economy in the world in terms of purchasing power parity (PPP)
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World's largest democracy with 1.2 billion people.
Stable political environment and responsive administrative set up.
Land of abundant natural resources and diverse climatic conditions.
Investor friendly policies and incentive based schemes.
Total labour force of nearly 530 million.
Large pool of skilled manpower; strong knowledge base with significant English speaking
population.
Huge untapped market potential.
The urban population of India will double from the 2001 census figure of 290 m to
approximately 590 m by 2030
Progressive simplification and rationalization of direct and indirect tax structures.
Reduction in import tariffs.
Full current account convertibility.
Robust banking and financial institutions.
WHY INDIAWHY INDIA
WHY INDIA
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Comprehensive incentives are provided by State & Central government.
Indicative list of incentives:
Rebate on cost of land
Rebate on stamp duty on sale/ lease of land
Power tariff incentives
Concessional rate of interest on loans
Investments subsidies/ Tax incentives
Backward areas subsidies
Special incentive packages for mega projects
Duty free imports for SEZ units
Service tax and income tax exemption for SEZ units
SEZ centric offering- Attractive fiscal concessions, Single window clearance, continuous supply of power at competitive rates, world class industrial and social infrastructure
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INCENTIVES
India has a Tax Treaty network
with over 70 countries, which
include USA, UK, Cyprus, European
Union nations, Japan, Singapore,
Australia, Turkey etc
In general, provisions of the
domestic income-tax law or Tax
Treaty, to the extent more
beneficial may be applied by non-
residents
Treaty shopping being heavily
debated
India has entered into many agreementswith Regional Countries, to facilitategreater trade between Countries
The Agreements principally provide forlower duties on imports upon satisfyingthe test of origin of goods
Significant among the Agreements arethe SAFTA [between Pakistan, Sri Lanka,Maldives, Nepal, Bhutan and Bangladeshin operation since 1995] and IndiaSingapore (Comprehensive EconomicCooperation Agreement – CECA)implemented and effective from August2005
Free Trade Agreements also exist withSri-Lanka, Nepal and Thailand
Double taxation
avoidance
agreements :
Regional trade
agreements :
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INTERNATIONAL ARRANGEMENTS
Foreign Investment in India
Permitted Sector Prohibited Sector
Automatic Route Approval Route
Investment up to the % allowed in respective
sector
Approval of prescribed Regulatory Authority
No investment is allowed
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FOREIGN INVESTMENT IN INDIA
►Department of Industrial
Policy and Promotion
(DIPP)
►Government body that
formulates FDI Policy and
facilitates FDI, formulates
industrial policy and
strategies for industrial
development
►Monitors industrial growth
and performance of
industries
►Foreign Investment
Promotion Board
►Government body that
offers a single window
clearance for proposals
on FDI under the
Government Route
►Reserve Bank of India
(RBI) - Central bank of
India
►Regulates the exchange
control provisions
►Controls the monetary
policy and the Indian
Banking system
►Maintains cash reserves
and controls credit
operations in the
economy
Competent Authorities
RBI
FIPB
DIPP
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COMPETENT AUTHORITIES
Entry StrategyENTRY STRATEGY
Based on the nature of activities, determine
► Form of business presence
► Applicable FDI regulations
► Need for approval from the FIPB in respect of the FDI
Review the present group structure to determine
► Need for structuring the Indian investment through an intermediate jurisdiction
► Selection of an appropriate holding company which can make the investments into India
► Review of intermediate holding company jurisdictions such as Mauritius, Netherlands and Singapore that would
provide tax efficiency
Evaluate structures from a commercial perspective to arrive at the preferred
structure for implementation
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INDIA ENTRY STRATEGY
PROHIBITED SECTORS FOR FOREIGN INVESTMENTS
• Lottery Business including Government/ private lottery, online lotteries, etc.
• Gambling and Betting including casinos etc.
• Business of Chit funds
• Nidhi company
• Agricultural or plantation activities
• Real estate business, or construction of farm houses
• Except for Construction, Development Sector and Industrial parks
• Trading in Transferable Development Rights
• Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of
tobacco substitutes
• Sectors not open to private sector investment e.g. Atomic Energy and Railway
Transport (other than Mass Rapid Transport Systems).
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MULTINATIONALS – DOING BUSINESS IN INDIA
Foreign Company
Operates as a foreign company
Establishes an Indian company
BranchOfficeProject Office
Liaison Office
Wholly Owned SubsidiaryJoint Ventures
Other forms of business
Franchisee and distributor arrangements (no direct presence)
Foreign technology collaborations (no direct presence)
Limited liability partnerships introduced in India, however, Foreign Investment Promotion Board approval required for both greenfield as well as conversion
Establishes an Limited Liability Partnership
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Registration for Incorporation
Import/Export Registration
HR Registration
- Name Approval- Certificate of Incorporation
- IEC- ICM
- RECMC- EPCG- SVB
- PF Registration- ESI Registration- Min. Wages Act
- Registration under Gratuity Act
Direct Tax Indirect Tax
- PAN- TAN
- Service Tax- CST- VAT
- Excise Duty
Factory License
- Approval of Factories Act, 1948- Other approvals
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REGISTRATIONS / APPROVALS REQUIRED
Process Flowchart – Incorporation of Company
Obtain Director Identification Number for
proposed directors of New Co
Obtain Digital Signature Certificate in name of atleast one director of
New Co
Obtain Approval of name for New Co
(Form 1A) from (ROC)
Arrange for drafting of Memorandum and Article
of Association
Arrange for stamping of Memorandum and Article
of Association and pay necessary stamp duty
File online application for incorporation of New Co
with ROC(Form 1)
File notice of situation of registered office in Form
18
File particulars of directors/ manager/ secretary in Form 32
with ROC
Pay Registration Fees to ROC
Obtain Certificate of Incorporation of New Co
from ROC
Time involved in formation
of a private limited
company is generally 4-6
weeks
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TIMELINE FOR SETTING UP COMPANY
Decide the Partners & Designated Partners for forming LLP
Obtain the Designated Partner Identification number and Digital Signature Certificate
Check Name availability for LLP and apply for name approval to ROC
Draft LLP Agreement
File incorporation documents with ROC
Obtain Certificate of Registration from ROC within 14 days of application
Time involved in formation of an LLP is around 2-3 weeks, however it may take additional 2-3 months where FIPB approval is required to be obtained for FDI into LLP
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PROCESS FOR SETTING UP LLP
Corporate Advisory
Services
WIDE GAMUT OF TAXES (ILLUSTRATIVE)
Dividend Distribution tax
Customs duty
Sales tax/ Value added tax
Service tax
Excise duty
Gamut of Taxes in India
Octroi / Entry tax
R&D Cess
Indirect tax
Gift Tax
Minimum Alternate Tax
Income tax
Wealth tax
Direct tax
Securities transaction tax
Stamp duty
Levies on transactions
WIDE GAMUT OF TAXES (ILLUSTRATIVE)
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RECENT FDI AMENDMENTS
Sector Existing Sectoral Cap &
Route
Revised Sectoral Cap & Route
Petroleum & Natural Gas
(Refining)
49% - Approval Route 49% - Automatic Route
Commodity Exchanges 49% (FDI + FII) - Approval
Route
49% (FDI + FII) - Automatic Route
Power Exchanges 49% (FDI + FII) - Approval
Route
49% (FDI + FII) - Automatic Route
Asset Reconstruction Company 74% of paid-up capital of
ARC
(FDI+FII) (Approval Route)
100% of paid-up capital of ARC
(FDI+FII)
Up to 49% Automatic Route Beyond 49% - Approval Route
Credit Information Companies 49% (FDI + FII) - Approval
Route
74 % (FDI + FII) - Automatic Route
Stock Exchanges and Clearing
corporations
49% (FDI + FII) - Approval
Route
49% (FDI + FII) - Automatic Route
Telecom
(Basic and Cellular Services etc)
74% - Approval Route 100%;
Up to 49% - Automatic Route Beyond 49% - Approval Route
Courier Services 100% - Approval Route 100% - Automatic Route
Defense
[Foreign Investment in State of the
Art Technology Manufacturing]
26% - Approval Route Cabinet Committee on Security may approve proposals on case to
case basis beyond 26% which are likely to result in access to modern
and state of the art technology in the country.
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• Assets - operating businesses and proprietary
assets mandated to invest in JVs
• Network - strong relationship with Government
and Industry bodies
• Context - insightful knowledge of the local
business, regulatory and operational environment
Why you should rely on us
History of international partnerships
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THANK YOUAshutosh Gupta, Director
[email protected] | [email protected]
www.nortechtrinity.com
Nortech trinity India Pvt. Ltd. | 2015 | All rights reserved
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Commercializing Technologies