TAX

Corporate Restructuring

Businesses in India are constantly looking to grow & with growth in mind, the business owners and managers are continuously evaluating how to maximize value, how to enhance the promoter foothold, how to unlock value, how to enhance the ability for future fundraising, etc. Even regulatory changes such as the introduction of the new Companies Act, adoption of new accounting standards in India (Ind-AS), changes in the SEBI takeover code and other regulations, Competition law and introduction of ‘GAAR’ require business houses to evaluate alternate corporate restructuring tools to achieve compliance with these changing regulations along with desired business goals. Restructuring tools such as mergers, de mergers, hive-offs, capital reduction, buyback, etc. are often adopted by corporates in India for better efficiencies in business.
With our demonstrated experience in this space,

We can pre-emit the client’s business needs

And suitably advise on the restructuring approach that may be adopted. We assist in identifying alternate corporate restructuring options that may be available, critically evaluate the same from each stakeholders perspective (shareholders, promoters, employees, vendors, business partners), identify potential tax costs associated with it, suggest suitable options for cash and tax rationalization, evaluate regulatory hurdles if any, and help appropriate decision making. With our deep domain knowledge, we understand the changing tax and regulatory environment and thus, provide solutions that are sustainable for a longer time for to you. Given our end to end approach, we assist you in the complete implementation of the restructuring plan by drafting/reviewing suitable documentation (schemes, buyback offers, board resolutions, shareholders approvals, etc.), seeking appropriate stock exchange approvals (for listed companies), making applications and necessary representations before the NCLT (National Company Law Tribunal), obtaining necessary regulatory approvals (such as from Regional Directors, Registrar of Companies, Official Liquidators, Reserve Bank of India etc.), stamp duty adjudication, etc. Our teams even assist in the post-restructuring support. For details read the section on post deal support