Flip

Overview

Flip transactions involve creating a foreign holding company structure above an existing Indian business—common when startups seek foreign venture capital or plan international expansion. Our Flip Transaction services provide expert guidance on this strategic restructuring while ensuring complete compliance. We assist with jurisdiction selection (Singapore, Delaware, Mauritius, etc.) considering tax treaties and business objectives, foreign company incorporation and setup, Indian entity shareholding transfer to foreign parent, FEMA compliance for share transfers and ODI, tax structuring including exit tax mitigation for Indian shareholders, valuation compliance and transfer pricing documentation, and regulatory approvals where required. Flip transactions require careful planning addressing tax implications for founders and investors, managing ESOP transitions, maintaining business continuity, and ensuring proper documentation across jurisdictions. We coordinate with foreign legal counsel while managing Indian regulatory aspects—ensuring your flip transaction is executed efficiently with optimal structure for future fundraising, expansion, and eventual exit opportunities.