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One of UK’s best known publishers, Longtail International, launched A Guide to International Financial Centres: What Indian Investors Need to Know, on June 10, 2010, in Mumbai. This is the first comprehensive annual guide for Indian entrepreneurs and investors looking to make strategic, lucrative and tax effective foreign investments through International Financial Centres (IFCs).

The relevance of this guide in India’s growth story was highlighted with a lively discussion on the ‘Dos and Don’ts’ of foreign acquisition by a panelist of legal and tax experts: Zia Mody (Legal Consultant & Founder, AZB & Partners), Dinesh Kanabar (Chairman Tax, KPMG India), Nishith Desai (International Tax, Corporate Lawyer & Founder of Nishith Desai Association) and Henri Prijot (International Tax Service Line, Deloitte, Luxembourg).

“There is a genuine interest among Indians in going outbound and acquiring companies,” said Kanabar. “However, going global doesn’t mean making ‘large’ acquisitions, but strategic ones.” Desai added, “India is in the early stages of globalization. We tend to be tax obsessed, but don’t often have regard for legal and cultural nuances [in other countries], which leads to errors.”

Not getting or following correct tax advice can mean that the Indian entrepreneur may suffer punitive tax both outside India and when returning with the rewards of his success. The importance of conducting proper research before taking the plunge, cultural integration, and the pros and cons of the Indian mindset on the international stage must be considered, too.

Written in plain English, the book demystifies the many opportunities now available to Indians to make cost and tax effective investments around the world—including in enticing business destinations like Luxembourg, Mauritius and Africa. It includes prominent contributions from internationally renowned Indian legal, accountancy and tax advisors and a plethora of up-to-date advice from individual IFCs.

As Mody put it, “India is looking to see where it can be established [in the world]. We like to get good deals and we don’t like to pay taxes. So, this guide is timely.”

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guide, IFC, International Financial Centres, launch, Longtail International