Master Class on Legal and Compliance Issues for Indian Entities with Foreign Ownership
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VBOARD INDIA PRIVATE LIMITED
Block A, 5th Floor, Chaitraban Complex,
Mumbai Pune Road Pune 411003
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Background
Contracts with Indian clients, lab operations, and partner arrangements can be properly structured between the WOS and counterparties -eliminating the ambiguity of the current unrelated-entity arrangement.
The Volontariat International en Entreprise (VIE) program is a French government-backed international assignment framework administered by Business France. It allows young professionals to work overseas under a public law structure rather than a traditional employment contract.
The VIE is NOT an employment contract (contrat de travail) under French law. It is a contrat de volontariat international -a sui generis public law civic engagement arrangement governed by Loi n° 2000-242. Business France administers and manages the programme; it is not the 'employer' in the civil law sense. The mandating French company defines and directs the mission and bears all costs.
While compliant under French law, the structure creates interpretational challenges under Indian regulatory frameworks. Shreshth Saxena with his expertise in legal matters as well as corporate issues has been collaborating with diverse teams to deliver tailored, legally compliant solutions that empower organizations to thrive in a complex regulatory landscape offers a refreshing Masterclass on all these issues.
Shreshth is an expert in Contract Negotiation, Legal Writing, Legal Drafting, Legal Research, Legal Consulting, Advisory Corporate Law, Legal Strategy, Communication Skills, Ability to Work in a Team, Corporate Governance, Regulatory & Statutory Compliance (MCA, IP Law), Legal Technology & Automation, Legal Budgeting, Vendor Negotiation.
Problem Statement
The nearing expiry of the VIE tenure and visa creates uncertainty around continuation of operations in India. The current structure lacks alignment with Indian legal, tax, and immigration requirements.
Without timely action, this may lead to disruption in business continuity, exposure to tax liabilities, and regulatory non-compliance for both the individual and the foreign company.
Subject
Cross-border advisory covering regulatory structuring, tax exposure, immigration continuity, and foreign business presence in India—aligned with legal, compliance, and strategic business considerations. •
Recent Developments
Indian authorities are increasingly adopting a substance-over-form approach in evaluating cross-border arrangements. Structures not formally recognized under Indian law are being examined based on actual activities performed.
There is also heightened scrutiny around visa usage, tax residency, and foreign entity operations, making proactive structuring and compliance more critical than before.
For Indian regulatory purposes (income tax, immigration, FEMA), the VIE is assessed functionally as a skilled worker deployment. Indian authorities do not recognise the French sui generis characterisation -the stipend is treated as employment income and the volunteer is assessed as a foreign employee working in India.
Key Issues
The primary issue is the mismatch between the VIE structure under French law and its interpretation under Indian regulations.
Visa validity and alignment with actual work performed is a key concern. Any inconsistency may trigger compliance risks.
There is also potential individual tax exposure in India, along with Permanent Establishment risk for the foreign company based on activities carried out locally.
FEMA-related considerations may arise if the operational presence is not structured appropriately.
Opportunities & threats
This situation offers an opportunity to transition into a structured and compliant business presence in India, enabling long-term growth and operational clarity. •
At the same time, inaction may lead to regulatory scrutiny, tax exposure, penalties, and disruption of ongoing business activities.
Contravention of FEMA provisions attracts civil penalty up to three times the sum involved under Section 13(1) FEMA. Where contraventions exceed specified thresholds, adjudication by the Enforcement Directorate (ED) and compounding proceedings before RBI become applicable. Voluntary compounding before detection is strongly advisable.
What we offer
Advisory on immigration continuity and regulatory alignment. End-to-end tax and PE risk assessment.
We support organizations across the full lifecycle of India entry and operational scale-up:
🔹 Company Formation & Market Entry Strategy
We provide end-to-end advisory on cross-border assignments and India entry strategy.
👉 Ensure compliant, efficient, and strategically aligned entry
🔹 Site Selection & Project Setup
We also assist in structuring the appropriate business presence in India—such as liaison office, branch, or subsidiary—ensuring full regulatory compliance.
👉 Enable faster setup with cost and operational efficiency
🔹 Compliance & Licensing
Our approach combines legal, tax, and strategic advisory to enable smooth, compliant, and scalable operations in India.
👉 Minimize risk and legal issues
🔹 Complete immigration package
Immigration planning, tax exposure assessment, and evaluation of Permanent Establishment risks.
👉 Build organizations with minimum paperwork and 100% legally viable
🟢 Start Now
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Shreshth Saxena
10
+
Experience
Years of
6
Organizations
B.Sc(Economics) at Symbiosis School of Economics, M.Sc(International Business) at Symbiosis School of Economics, LLB at Chaudhary Charan Singh University, Meerut
