Several start-ups are moving their domicile back to India, with RazorPay being one of them. Digitial payment firm RazorPay, whose office is registered in the United States, has started its restructuring exercise, as per a report by the Economic Times.
Under the restructuring process, the company is reportedly bringing half a dozen of its India units under a single holding company.
The consulting firm that is helping RazorPay with the restructuring process is Deloitte. Once the process is completed, the company might have to pay up to $200 million tax outgo, says the report.
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The latest start-up to move its domicile back to India was fintech platform Groww. Lalit Keshre, the co-founder of the company, announced the same on May 9. While the company has not talked about the taxation it had to pay on its return to India, the report says that to return its holding company back to India, the company has accounted for $60–70 million in tax.
Another start-up that secured approval from its board to move its domicile from Singapore to India is quick commerce platform Zepto. After the ongoing fundraising is completed by the company, it will reportedly file for a transition.
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The most recent company that got approval from the Singapore court to move its domicile back to India was Pine Labs. The National Company Law Tribunal is yet to give approval to the company for shifting its domicile back to India. However, it isn’t clear how much the company must pay in tax to shift its base. When PhonePe shifted back to India, the company’s investors had to pay Rs 8,000 crore in taxes to come back to the country.
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