RepresentANTing Indian Biz

As Indian companies move into international markets, it becomes critical for them to find an experienced and competent partner to manage their international operations. Itzik Amiel, Attorney-at-law and Director International Business Development, ANT Trust & Corporate Services BV talks about his experiences with Indian companies.

Tell us a bit about what ANT does for the benefit of our Indian readers.

ANT has been offering trust and corporate services since 1896. We partner with businesses to meet their needs for international management and corporate services, bringing in our experience in the field of asset management services.
This encompasses a wide set of activities from incorporating a company, providing registered office facilities, reception and secretarial services, attending to day-to-day management issues, monitoring and meeting local compliance requirements, coordinating interactions with clients and advisors, overseeing audits, payroll services and many other such functions. We provide these services to holding companies, financing companies, licence and royalty companies that are involved with intellectual property rights, real estate investment companies, etc.

How long has ANT been actively interested in India? What were the motivations to tap the Indian market at that time?

For India, ANT’s services are particularly relevant at a time when Indian companies are taking rapid strides towards global operations. We have been here in India since 2007 officially. I feel that the global economic crisis and the fast and unique development of India’s economy has raised the awareness of Indian companies and made them realise the importance of stepping out of the local comfort zone and starting to build a real global presence.
As the market picked up and we observed the growing Indian appetite for international business, especially through the mergers and acquisitions, we looked at India more aggressively, sending in a team once in two months to interact with and service Indian companies and multinationals based in India.
ANT’s expertise and services are therefore very useful for Indian companies to manage holding companies in jurisdictions like Netherlands, Singapore, Mauritius and Cypress. In fact, escrow services and management services for holding companies has been a specific focus area for ANT with respect to Indian companies investing in international markets through these jurisdictions.
Today, companies in India are aware of the international possibilities and are capable of being involved in sophisticated and complicated financial transactions. Indian travel abroad often and have more exposure. Outbound investment will only grow.

Is the Netherlands specifically high on their radar for jurisdictions where they can place a holding company?

Indian companies are used to a more regulated business environment and pay careful attention to taxation. Among the BRIC nations, I would say Indian companies look more closely at taxation issues as compared to China and Brazil. Accounting professionals in India are exploring creative tax structures and comparing jurisdictions in terms of what they offer.
In this, the attractiveness of the Netherlands as a top holding location is getting more and more awareness in the Indian market, in part because of the commitment and the expertise of local Indian tax advisers. While in many countries around the globe we are busy in sharing knowledge and companies are “copy-paste” existing structures, Indian companies and investors, once are aware of the international structuring possibilities, and specifically about the Netherlands, do try to take it to another level and still have many things to share and teach to their more experienced multinational counterparts. I would say that in international, cross-border structuring, India is leading and not being led!
However, I also often see that many large clients are still unaware of the potential of the Netherlands for international business. The key thing here is to look beyond the taxation advantages and see whether the business would be competitive in that location. Here, Netherlands with its connectivity, logistics, superior workforce and great business environment, offers many advantages. There is, therefore, a need to spread the message further and more forcefully in India. The new Direct Tax Code, once implemented, will also impact the situation and we will have to see how India and the Netherlands can work together in the business arena basis the new rules.

You’ve been to India several times. What, according to you, makes Indian business tick? What do you see in the future?

I’m very clear that Indian deals abroad are not going to be successful on the basis of taxation, legal or financial issues alone. The most critical aspects remain things Indians are already good at—the cultural nuances of doing business, the ability to communicate with each other and the talent to maintain and nurture future business relationships, network with the right people, etc., things that I myself believe in.
Another important aspect is to lay stress on finding the right business partner for the deals you make. To deal with European clients specifically, Indian companies need to set specific targets, work with a more open approach, prepare better contracts, make deals work faster. In all this, ANT is an organisation geared to partner with you and work through the issues, providing support at critical junctures.

You can contact Itzik at i.amiel@ANT-trust.nl