Australian Couple — Smart Restructuring from OPC to LLP
A One Person Company structure was quietly taxing an Australian couple twice on their own money. One conversation with NDSA turned a costly structure into a lean, compliant one.
One conversation that changed the structure
An Australian couple who had recently moved to India incorporated a One Person Company to run their business here. They came to NDSA for guidance — and that conversation changed the direction of their entire structure.
An OPC that was working against them
On reviewing their setup, it was clear the OPC wasn't serving them well. The corporate tax rate was 25%, and on top of that, any funds they drew out personally were subject to dividend distribution tax — meaning they were effectively being taxed twice.
Since they needed funds in a personal capacity for property investments and other personal use, the structure was working against them. There was another layer to it too: their Indian entity was invoicing their Australian entity, which brought transfer pricing regulations into the picture — an area that needed to be handled carefully and correctly.
Converting to an LLP — and documenting the cross-border arrangement
We advised them to convert the OPC to an LLP. In an LLP structure, profits flow directly to the partners without a second layer of tax — so what they draw personally is taxed only once, at individual rates. The conversion was executed and the tax burden dropped meaningfully.
We also structured and documented their cross-border invoicing arrangement between the Indian LLP and the Australian entity in line with transfer pricing requirements, ensuring full compliance on both sides.
Taxed twice
25% corporate tax, plus dividend distribution tax on personal withdrawals — and an unstructured cross-border invoicing arrangement.
Taxed once
Profits flow directly to partners, taxed only once at individual rates — with a documented, compliant transfer pricing arrangement.
"NDSA advises businesses at every stage — not just on compliance, but on structuring decisions that have a real financial impact."
A leaner structure, with room to invest
The couple now operates with a leaner, more tax-efficient structure. Their personal withdrawals cost them significantly less in tax, and they have the freedom to deploy those funds into property and investments as they had planned.
Their cross-border arrangement is clean, compliant, and well-documented. One conversation with NDSA turned a costly structure into a smart one.
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