Profit Repatriation: An Important Factor
Based on the way the business is set up, there are different ways companies can repatriate their profits from India. In case of a contractual arrangement or Liaison Office, there’s no question of profit repatriation.
Branch offices and project offices can freely repatriate their net profits to the head office after paying all local taxes. The profit repatriation of Private Limited Companies is subject to the provisions of Company Law. Limited Liability Partnerships can repatriate their profits by way of profit distribution or capital withdrawal.
Here’s a detailed look at the proceedings for profit repatriation from your business in India.
Additionally, profits can be repatriated as payments for royalty or technical knowhow, and fee for technical or business support services. These payments are governed by Indian Tax Laws or relevant tax treaties, whichever benefits the foreign entity more.