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
Foreign companies looking to do business in India should perform a due diligence check.
During the due diligence examination, the financial, legal, and compliance aspects of the company or business are reviewed and documented. The purpose is to identify if there are any risks or concerns with the business.
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 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.
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.