Can we send money as expenses/fees to parent company to save taxes?

Business structuring depends on the business objective and model as it involves statutory and regulatory compliances. Need more information on below aspects to advise you precisely:

1) Whether income from business operations would be by providing services or trading?

2) Whether nature of clients would be domestic or overseas or combination of both?

3) Nature of expenses

4) Place of business etc.

For detailed discussion you may opt for phone consultation

Structuring depends on your requirement. Whether you wish to have a holding subsidiary structure or if you wish to have a independent structure. Generally holding subsidiary structure is useful when you wish to get some funding etc.

Also, it is advisable to have atleast 1 or 2 Indian resident as partner in LLP for ease of compliance as having non-resident as partner would involve FEMA compliance.

Why would a subsidiary send money to holding company? Is there any service which we shall show that it will receive?

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Comparison: Bahrain Parent Company vs. Direct LLP in India

Bahrain Parent Company:

• 
  Tax Benefits: No corporate or personal income tax in Bahrain.
• 
  Funding and Investment: Easier to attract international investors.
• 
  Compliance: More complex, requires adherence to both Bahraini and Indian regulations.
• 
  Operational Flexibility: Better for managing international subsidiaries.
• 
  Legal Protection: Additional layer of liability protection.
• 
  Reputation: Enhanced international credibility.

Direct LLP in India:

• 
  Tax Benefits: Subject to Indian corporate taxes.
• 
  Funding and Investment: Simpler for local investors.
• 
  Compliance: Limited to Indian regulations, simpler.
• 
  Operational Flexibility: Easier local management.
• 
  Legal Protection: Limited to LLP structure.
• 
  Reputation: Better local market perception.

Summary

• 
  Choose Bahrain Parent Company: If focusing on international expansion, tax efficiency, and attracting global investors.
• 
  Choose Direct LLP in India: If operations are mainly domestic, with simpler compliance and local market integration.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

It depends on your objective and business to be carried on. It is possible to have LLP in India with foreign partner. But it is important to understand exact business model and objectives to advise in detail