Advise On Starting A Co.

[rakesh5295 0]

A USA based Software company want to employ people here to do the same work they are doing there. People would make software here and work on that software like they r doing in USA right now. I would like to know how to setup a co./brnach here in India in which they end up paying the least tax and evrything is legal. They are not going to make any sale here of that software, only employ people to make,work on that as being done in USA.

Please Lawyers, Ca's etc pls help me out on this. Please give ur valuablke advise along with any links which may be infromative to read if possible.

Thank's in Advance.

Edited April 26, 2007 by rakesh5295

[petar 15]

basically offshoring the cost centre to india.

[rakesh5295 0]

What does that mean. can u give any detials. the co doenst not want to outsource but start here on its own.

[copperco2 24]

it means you want to outsource a business process that is integral to their functioning i.e. a BPO.

there are n number of companies doing just that..

for e.g. call center, software dev firm

elaborate- software dev firm will pitch tot he client about its expertise and infrastructure.., the cliebt will agree and instead of a fixed remuneration it will go for a hours the person will work.. for e.g. if say $1*8 hrs i.e. 8$ per day, if the client wants to scrap the project then it will give a notice and terminate the contract.

now the main issue is when you are getting 8$ per day, you employ somebody who wiull say work for 4 or 5$ per day..

this is the process you will have to undertake.

now if you want to estblish such business then i understand that you have verry verry deeeep pockets full of cash or bankers ready to bankroll your project..

whu worry in such case, hire an experienced erson..designate him CEO pay him TOP DOLLER and ask him to implement the project..

and you are done , you ill just have to monitor the project, he will take care of everything, i mean everything..

(i forgot to mention- the most imp. work you have to do is hire a capable person.)

[Ramchi 0]

There are numerous ways available.

It depends on the objectives of the Organization.

If it is going to be an ODC model then it is better to go with a vendor who has already specialized in that model.

BOT model where you can collaborate with a local partnership and gradually get a firm foot in India then start operate on your own. This model fits only if you are planning to expand your business in India may not fit if you want to just outsource your work from US. Examples: ING, AIG, Fidelity, Pepsi etc…

If the American company wants to open its off-shore development center on its own in India, it can be done so as Private Ltd company which provides you greater freedom but requires some specialization on labor laws which can be obtained thru some HR Consulting companies or by employing a professional HR department.

If the size of the organization is relatively stable and does not expect to grow, it can work out strategy where an existing organization in India can provide all necessary services exclusively for the US based company. Basically, you can insist this Indian based company NOT to venture on any other business activities. Capital expenditure would be very less and even if you plan to leave this arrangement, it would be less expensive.