In this issue of India Briefing, we outline key aspects that foreign companies must focus on when conducting due diligence on an entity operating in India. We analyze the different types of due diligence that foreign companies should consider important while investing in India. Lastly, we answer some frequently asked questions on this topic.

Due diligence is usually conducted in cases of mergers and acquisitions, partnerships, joint ventures, and IPO. It should also be noted that companies in India have to comply with different legal and regulatory compliances, and the tax regime can be difficult to navigate. Therefore, due diligence is required to ensure that the local company is in compliance with all the necessary laws and rules, and has been providing accurate information to the foreign company inquiring about its business.

Through this due diligence process, a foreign company gets access to all the information including the liabilities, reputation, and finances of the business. Once the risks, challenges, and potential opportunities are identified, the foreign entity can decide if it wants to be in business with the company in India.

In this issue:

• Due Diligence: What Foreign Companies Need to Know
• Navigating Through Different Types of Due Diligence in India
• Q+A: What You Need to Know About Conducting Due Diligence in India

If you and your company are interested in conducting due diligence on a company or business set up in India, please contact Dezan Shira & Associates.

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About Us:  Dezan Shira & Associates is a specialist foreign direct investment practice that has grown into one of Asia’s most versatile, full-service market entry, legal, tax, accounting, HR and operational consultancies for international businesses and corporate investors and with numerous offices throughout Vietnam, Singapore, Indonesia, China, Hong Kong SAR, India, Europe and North America.  Our publishing subsidiary Asia Briefing, founded in 1999, publishes regionally focused briefings which cover, the ten ASEAN countries, China, Hong Kong SAR, India, Russia, Vietnam – and a focused Belt and Road Initiative briefing as well. Our briefing updates provide intelligence to businesses and foreign investors interested in or operating in these international markets via regulatory updates, analysis and commentary on today’s real issues concerning the foreign investor in Asia.