The document discusses foreign direct investment (FDI) in India through holding companies. It outlines four key criteria for holding companies: 1) low withholding taxes on incoming dividends, 2) low corporate income tax on dividend income, 3) low capital gains tax on share sales, and 4) low withholding taxes on outgoing dividends. It then examines Cyprus, Malta, Mauritius, and Singapore as preferred jurisdictions for holding companies due to their tax benefits. The document provides an example flexible holding structure and discusses how double taxation treaties can be utilized to minimize taxes.

1. EFS Consultants (India) Pvt. Ltd. (EFS) Foreign Direct Investments FDI in India April 20 by Julie Rosenthal © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com

9. Singapore © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com

10. Singapore at a Glance Singapore consistently ranks as one of the top most competitive and profitable places for business. Singapore today is a reputable financial centre, a key regional trading centre, the world's busiest port, and a top location for investments and doing business. Singapore's safe, pro-business environment is supported by a well-respected government with transparent and consistent policies that protect companies' physical and IP investments © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com

12. Flexible Holding Structure for Company with Indian interest © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com Malta Holding Private Property Holding Holiday Home Thailand Trading Company EU Commercial Property Holding General Trading Company India

13. An active typical foreign investment structure Shareholding structure Royalty structure © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com Holding Company (Isle of Man) Trading Co Russia (Netherlands) Trading Co Turkey (Netherlands) Trading Co Phillipines (Netherlands) Trading Co Singapore (Netherlands) Trading Co India (Netherlands) Trading Co Malaysia (Netherlands) Joint Venture (India) Joint Venture (Malaysia) Joint Venture (Turkey) Joint Venture (Russia) Joint Venture (Philippines) Joint Venture (Singapore) Holding Company (Malta) Holding Company (Netherlands) Holding Company (Mauritius)

15. India’s Double Taxation Treaties (Dec 08) ) © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com Romania Netherlands Nepal Namibia Morocco Mongolia Mauritius Malta Malaysia Libya Kyrgz Rep. Korea (South) Kenya Kazakhstan Jordan Japan Ireland Italy Israel Indonesia Hungary Greece Germany France Finland Egypt Denmark Czech Republic Cyprus China Canada Bulgaria Brazil Belgium Belarus Bangladesh Austria Australia Armenia Zambia Vietnam Uzbekistan USA Ukraine UK United Arab Republic U.A.E. Uganda Turkmenistan Turkey Trinidad and Tobago Thailand Tanzania Syria Switzerland Sweden Sudan Sri Lanka Slovenia Spain South Africa Singapore Saudi Arabia Russia Qatar Portugal Poland Philippines Oman Norway New Zealand

16. EFS Consultants on FDI India © EFS Consultants (India) Pvt. Ltd. www.efs-consultants.com EFS Consultants Pvt Ltd. Mumbai 723 Midas, Sahar Plaza Kurla Andheri Road Andheri East Mumbai – 400059 India Tel: +91 22 30727610 www.efs-consultants.com EFS Consultants Shanghai Unit 615, No.709 Central Tibet Road MeiXin Plaza Shanghai 200001 China Email: [email_address] EFS Consultants Ltd London 150 152 Fenchurch Street London EC3M 6BB United Kingdom Tel: +44 207 2207363 Fax: +44 870 4865532 www.efs-consultants.com