Tesla will make its India foray through its Amsterdam arm as the electric car maker looks to bypass the tax hurdles in India by taking the tax-friendly jurisdiction of the Netherlands. Elon Musk-owned Tesla has taken the Netherlands to route its India investment for benefits related to capital gains and dividend payments.
The company's incorporation documents reveal its India unit, Tesla Motors and Energy, India, has a parent company based in Amsterdam, Tesla Motors Amsterdam, The Economic Times reported. The Netherlands-based company, Tesla Motors, is the subsidiary of California-based Tesla Inc.
Tesla is registered in California, and Tesla Motors, the Netherlands, is its subsidiary. The Netherlands has been one of the top choices for US-based companies since it offers favourable tax rates, and has a strong intellectual property (IP) protection framework.
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Tesla has registered Tesla India Motors and Energy Pvt Ltd with Registrar of Companies (RoC) Bangalore. The company has been registered as an unlisted private entity with a paid-up capital of Rs 1 lakh. Vaibhav Taneja, Venkatrangam Sreeram, and David Jon Feinstein have been appointed as directors of Tesla India, as per the RoC filing.
The company is reportedly in talks with five states as it explores feasibility of setting up its manufacturing unit and research and development (R&D) centre in India.
