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Permanent Establishment (PE) refers to a fixed place of business through which a foreign company conducts operations in India. If a PE is created, the company may become liable for taxation in India on income attributable to that PE.
Our experts provide permanent establishment advisory in India, helping businesses structure operations efficiently and avoid PE exposure in India under Indian tax laws and DTAA provisions.
Your business may create a PE if:
Without proper contract structuring to avoid PE, even remote operations can trigger Indian tax exposure.
Our OECD & Indian PE clause advisory covers all four major PE types:
Office, warehouse, project site, or even co‑working space used for business in India.
Employees or consultants working in India beyond treaty thresholds (usually 90 or 183 days).
Indian agents or distributors who negotiate or close contracts on your behalf.
Projects like construction, installation, or turnkey contracts exceeding treaty limits.
Each of these requires India PE tax assessment & structuring to avoid unnecessary tax exposure.
Once a PE is created:
That is why companies need Permanent Establishment (PE) Advisory and Service PE & agency PE risk mitigation before starting or expanding Indian operations.
Don’t know when PE risk actually gets triggered.
Risk of notices, audits, and penalties
Unsure how to structure presence in India without PE risks.
Lack of clarity on DTAA use once PE is established.
Can’t claim lower tax rate due to PE classification.
Once PE is created, full compliances apply like a local company
Struggle with defending PE position during scrutiny.
The #1 Choice for PE Advisory For Foreign Companies in India
From TRC and Form 10F to DTAA paperwork, know what documents you need to avoid higher taxes and stay compliant in India.
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Their advice on PE risk saved us from unexpected tax exposure. The clarity they gave was extremely valuable.
We weren’t sure about PE implications under India’s tax laws. MAG gave us a clear analysis and helped us avoid triggering it unnecessarily.
MAG helped us understand whether we were creating a Permanent Establishment in India — and guided us to structure our operations safely.
| Others | MAG |
|---|---|
| ❌ Unknowingly expose you to PE risk because they have no expertise | ✅ PE risk reviewed based on contracts, people, roles, and control |
| ❌ Simply state “no PE” without showing treaty or logic | ✅ DTAA PE clause interpretation and mapping with your home country |
| ❌ No advisory on preventive structuring | ✅ Share SOPs to prevent PE for remote teams, SaaS setups, etc |
| ❌ Expect you to draft legal documents by yourself | ✅ Provide No PE declarations and intercompany contracts |
| ❌ No backup plan if PE gets triggered later | ✅ Explain tax outcomes and options like branch, WOS, or contract model |
| ❌ PE seen as a one-time check, not a future risk | ✅ Help restructure now to reduce long-term PE exposure |
Avoid Unintended Tax Presence in India — Know If You’re Triggering a Permanent Establishment
DOWNLOAD YOUR FREE GUIDE NOWA Permanent Establishment is a fixed place of business or significant presence that allows India to tax your foreign company. It can be triggered by having a dependent agent, office, or even regular services rendered from India.
You may be at risk if:
-You have an Indian team or office
-Sign contracts or invoices in India
-Provide services physically from India
-Use an agent who habitually concludes deals
Our team assesses your activities and structure to identify any risk of PE.
If you’re deemed to have a PE in India:
-Your foreign company becomes taxable in India
-Penalties and back taxes can apply
-You may lose DTAA benefits or face litigation
We help structure your presence to legally avoid PE exposure in India.
There are 4 types of PE:
-Fixed Place PE: Office, branch, project site
-Agency PE: Indian agent negotiating on your behalf
-Service PE: Employees or consultants rendering services in India
-Construction PE: Project site over 90–180 days (treaty-dependent)
Yes. Our OECD & Indian PE clause advisory ensures your structure is globally compliant and defensible.
A formal India PE tax assessment & structuring report, PE risk map, and action plan reviewed by expert CAs.
We offer:
-PE Risk Assessment Report
-Review of agreements, contracts, and operations
-Strategic restructuring to reduce risk
-DTAA-based documentation
-Advisory on tax-efficient alternatives (e.g., subsidiary vs liaison office)
We typically review:
-Contracts with Indian clients
-Employee roles and payroll structure
-Operating procedures in India
-Nature of services and control structure
Our team signs NDAs and treats everything confidentially.
Yes. Our team of expert CAs for PE planning in India can help you:
-Help restructure your operations
-Shift contracts or service execution
-Localize billing through an Indian entity
-Document independence and intent with revised agreements
Absolutely. You’ll receive a detailed PE risk opinion based on Indian tax law and DTAA, along with a recommended action plan, so you can operate in India confidently, with minimized tax risk.
Our experts will connect with you shortly to answer your questions and guide you with the right solution.
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