Business Process Outsourcing
(BPO)
Business Process Outsourcing (BPO)
and Call Centers are classified as Information Technology Enabled Services
(ITES) companies wherein 100% FDI is allowed under the automatic approval
route.
Foreign
Companies, telecommunication companies and banks can set up their own
captive BPOs and Call Centers to cater to their customers in their place
of business.
BPOs
BPOs can be set up as a
private limited company with 100% foreign investment. Since they
export their services either to their parent companies (captive BPOs) or
towards third party clients and customers abroad, they are entitled to
100% exemption from payment of corporate income tax till 31st
March 2009 provided they are registered as an 100% Export Oriented Unit
(EOU) under the jurisdiction of the Software Technology Parks of India
(STPI). STPI is the nodal authority for certification of their
export services and is the single window approval authority for
BPOs.
Call
Centers
For Call Centers in addition to the
approvals enumerated above for BPOs, an approval from the Department of
Telecommunications (DoT), New Delhi is necessary to permit them to carry
on their business as Call Centers in India.
The firm has assisted a
leading stock broking company in U.S.A., Hold Brothers, to set up its own
captive BPO in India for carrying out its day trading activities with more
than 150 day traders.
