Compare the same business decision across markets.

Source fact: Companies Act 2013 and SPICe+ digital incorporation process. Foreign Direct Investment (FDI) permitted up to 100% under Automatic Route in most sectors, subject to Press Note 3 security screening for countries sharing land borders.

WONE implication: Wholly-owned subsidiaries are standard; at least one resident director must have stayed in India for not less than 182 days during the financial year.

• Does the planned sector qualify for 100% FDI Automatic Route or require Government Approval?
• Will an Indian resident director be drawn from executive staff or independent professional services?

Source fact: Corporate income tax rate is 22% (base rate plus surcharge/cess effective ~25.17%) under Section 115BAA for companies foregoing specified exemptions. Goods and Services Tax (GST) operates under a dual federal structure with standard rates of 5% and 18%, alongside a 40% demerit rate on luxury and sin goods (the former 12% and 28% slabs having been rationalized). The 2% equalisation levy on cross-border e-commerce supply has been formally withdrawn, with digital transactions governed strictly under Significant Economic Presence (SEP) and transfer pricing regulations.

WONE implication: Cross-border intercompany fees, management charges, and software royalties face rigorous transfer pricing audits and mandatory withholding tax (TDS).

• Should the company elect the concessional Section 115BAA tax regime?
• Is an Advance Pricing Agreement (APA) warranted for high-volume cross-border intercompany transactions?

Source fact: India's four consolidated Labour Codes (Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety, Health & Working Conditions Code) were formally brought into force on 21 November 2025, modernizing national labor governance and statutory employee benefits. Employment Provident Fund (EPF) and ESI statutory contributions remain mandatory for eligible workforce.

WONE implication: Employment contracts must separate basic pay, statutory allowances and provident fund contributions to prevent retroactive wage restructuring claims.

• What compensation architecture complies with statutory basic wage thresholds?
• Are Employment Visas required for expatriate key personnel meeting the statutory salary floor?

Source fact: Foreign Exchange Management Act (FEMA 1999) and RBI Foreign Exchange Regulations govern capital inflows, external commercial borrowings (ECB), and overseas direct investments (ODI).

WONE implication: Equity capital inflows and share allotments must be reported through the FIRMS portal (Form FC-GPR) within 30 days of issuance to prevent FEMA compounding penalties.

• Has foreign inward remittance reporting (FC-GPR) been integrated into capitalization milestones?
• Are sector licences required from sectoral authorities (IRDAI, TRAI, CDSCO, RBI)?

Source fact: Strict capital account convertibility restrictions under RBI; current account transactions freely permissible subject to documentation. Authorized Dealer (AD Category I) commercial banks supervise all cross-border remittances.

WONE implication: Repatriation of profits, dividends and capital requires statutory auditor certificates (Form 15CA/15CB) before bank processing.

• Which Authorized Dealer bank will handle corporate account operations and FEMA regulatory filings?
• Are export proceeds subject to the mandatory 9-month realization deadline under RBI guidelines?

Source fact: Customs Act 1962 and Foreign Trade Policy (FTP). Special Economic Zones (SEZs) and Manufacturing and Other Operations in Warehouse (MOOWR) scheme allow duty-deferred capital equipment import.

WONE implication: Setting up manufacturing under the MOOWR scheme defers customs duties on imported raw materials until domestic customs clearance or export.

• Is MOOWR warehousing or SEZ status preferred for export-oriented operations?
• Are products eligible for concessional tariffs under CEPA or bilateral FTAs?

Source fact: Digital Personal Data Protection Act 2023 (DPDP Act) establishes consent-based processing requirements, significant data fiduciary classifications, and substantial penalties for data breaches.

WONE implication: Cross-border data transfers are permitted except to blacklisted jurisdictions; verifiable parental consent mandated for minor data processing.

• Are internal consent mechanisms and privacy notices compliant with DPDP Act rules?
• Does the data processing volume qualify the enterprise as a Significant Data Fiduciary?

Source fact: Patents Act 1970, Trade Marks Act 1999, Copyright Act 1957. Controller General of Patents, Designs and Trade Marks (CGPDTM) administers registration; India is a member of Madrid Protocol and PCT.

WONE implication: Section 3(d) of Patents Act imposes strict efficacy hurdles for pharmaceutical and chemical incremental patents.

• Are international trademark applications extended to India under Madrid Protocol designated correctly?
• Are non-disclosure and invention assignment covenants executed with all local technical staff?

Source fact: Competition Commission of India (CCI) enforces mandatory pre-merger notification regime with asset and turnover thresholds; Deal Value Threshold (DVT) of INR 2,000 crore applies for tech/digital acquisitions with substantial business operations in India.

WONE implication: High-value digital transactions require CCI review even if the target asset has modest historical accounting turnover.

• Does transaction enterprise value trigger the statutory Deal Value Threshold (DVT)?
• Is NCLT court-approved scheme of arrangement required for corporate restructuring?

Source fact: Prevention of Money Laundering Act (PMLA), Companies (Significant Beneficial Owners) Rules, and mandatory CSR spend (2% of net average profits) for qualifying enterprises under Companies Act.

WONE implication: Significant Beneficial Owner (SBO) declarations (Form BEN-2) must be submitted; corporate governance failures risk MCA disqualification.

• Have SBO filings been verified through corporate legal shareholding tiers?
• Is mandatory CSR committee and budget allocation triggered by net profit thresholds?

Source fact: Arbitration and Conciliation Act 1996 (amended). Commercial Courts Act 2015 provides designated Commercial Courts and mandatory pre-institution mediation for specified commercial disputes. New York Convention enforcement limited to reciprocating territories.

WONE implication: Arbitration clauses specifying institutional seats (e.g. SIAC, MCIA, DIAC) avoid extensive domestic trial delays.

• Should dispute resolution designate Mumbai Centre for International Arbitration (MCIA) or international seat?
• Is foreign arbitral award enforcement supported by reciprocating territory gazette notification?