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Cross border transactions and Foreign funding

We can help you for cross border transaction/ foreign funding though our international partners affiliations.

Structuring of transaction to closure of deal, we can provide your end to end solution.

Cross border transactions and Foreign funding

Meaning or what is Cross border transactions?:

A transaction in an international trade between two or more entities beyond the territorial limits of a country or a transaction in a domestic trade in which at least one party is located outside the country of the transaction is known as international Transaction or Cross border transactions.

7 pointers to be considered will cross border transactions:

  1. Diplomacy and Cultural Awareness: In the success or failure of business negotiations, diplomacy can play a major role. Even before making overviews, it is important to be conscious of any cultural differences and general norms that could impact how you are viewed by your counterparty.
  2. Differing Legal systems: In a cross border transaction, the excellent of governing law can mean the difference between two challenging ( and possibly opposite) understandings of key provisions and it can be possibly even mean the difference between enforceability and unenforceability of the whole system. Rights that you have in the India may or may not be available in other foreign country.
  3. Language of Contract: In few countries, in order to be enforceable, certain legal documents needs to be prepared in native language only. If bilingual contract is created, then in foreign and domestic courts, will both the versions receive the same interpretations? Answers to these questions will depend upon the specific languages and jurisdictions involved.
  4. Tax Implications and Tax Treaties: Across international jurisdictions tax vary widely. To prevent double taxations many countries have tax treaties designed but, these treaties are country specific and there may be additional taxes from which you are not exempt under the terms of the treaty.
  5. Dispute Resolution and Enforcement of Judgements: In cross border transactions, unresolved questions of jurisdiction and venue can lead to costly litigation and  it can be very difficult to enforce a judgement from one country in a foreign jurisdiction. To avoid the need for dispute resolution all together. the ideal solution can be done through careful drafting and attention to detail during the deal making process.
  6. Data Protection Regimes: The penalties, in many countries for unlawfully collecting or disclosing private information are severe and in select jurisdictions, business owners and executives can even face prison time for data privacy violations.
  7. Finding Reliable Foreign Counsel: In order to navigate a foreign legal system you will need to work with experienced and reliable foreign counsel to ensure that you are covering your bases with regard to legal compliance.

Foreign funding for business:

Foreign Direct investment (FDI) has been an important source of funds for companies where capital is not readily available. Under FDI, overseas money, either by an individual or entity is invested in an Indian company. In India, Foreign Exchange Management Act,2000 governed by the Reserve Bank of India regulates foreign direct investment policy. In India, one can invest either under government route that is which requires prior approval from the concerned Ministries or Departments or under Automatic Route which does not require approval from RBI.

We can help you raise funds from foreign investors and structure complete transaction in tax friendly manner.