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For years, several Indian pharma companies have been moving their prized possessions of intellectual property (IP) assets to offshore subsidiaries in destinations like Dubai, Ireland, Switzerland and the UK either for strategic reasons or to lower or escape taxes. <br /><br /> However, since last one year all companies are required to file annual performance report on their overseas subsidiaries and joint ventures (JVs) with the <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI), which has led to this practice of offshore transfer of IP assets come under the RBI radar. <br /><br /> The central bank has raised questions about these foreign subsidiaries having raised loans abroad to pay for the IPs that were transferred to them.<br /><br /> To fulfil transfer pricing norms, a transfer of assets from India has to be done at arm's length price. Typically, an overseas pharma subsidiary raises loan against guarantee or collateral given by its Indian parent. <br /><br /> However, RBI has said that it won’t accept such transactions, adding that it violates <keyword id="6368276" type="COMPANY" weightage="100" keywordseo="Foreign-exchange">Foreign Exchange</keyword> Management Act (<keyword id="6379062" type="ORGANIZATION" weightage="100" keywordseo="FEMA">FEMA</keyword>) and is against the rules on external commercial borrowings (<keyword id="60971" type="CITY" weightage="100" keywordseo="ECB">ECB</keyword>). <br /><br /> In the past three months, RBI has enquired with at least five pharma companies about such transactions, two persons in the know told <a href="http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/transfer-of-ip-assets-by-pharma-firms-to-abroad-under-rbi-scrutiny/articleshow/58886190.cms">ET</a>. <br /><br /> ECB rules say that funds borrowed by an overseas arm against the Indian parent's support cannot be sent back to India and have to be used for overseas expansion. <br /><br /> In pharma business, IP involves everything that can give revenue when monetised, be it new drug applications (NDA), abbreviated new drug applications (ANDA), 505(b)(2) NDA, or product dossiers and so on. <br /><br />(Image source Clipart Panda

RBI eyes offshore transfer of IP assets by pharma firms

<br /> If you think <keyword id="10387" type="CITY" weightage="60" keywordseo="Microsoft">Microsoft</keyword>’s prolonged search for the next <keyword id="5645" type="POSITION" weightage="100" keywordseo="CEO">CEO</keyword> is getting a bit nutty, especially with a disgruntled <keyword id="62333" type="PERSON" weightage="60" keywordseo="Steve-Ballmer">Steve Ballmer</keyword> waiting on the sidelines to hand over the mantle, you are not far from the truth. But then, that is the actual state of the coveted C-Suite nowadays – volatile is the right word if you want to sum it up. There is no job security at the top and even the best performer for years can get redundant within the span of a few weeks. The issues could be many – right from <keyword id="646347" type="UNKNOWN" weightage="100" keywordseo="poor-performance">poor performance</keyword> to <keyword id="610960" type="UNKNOWN" weightage="100" keywordseo="business-restructuring">business restructuring</keyword> to alleged <keyword id="6375736" type="UNKNOWN" weightage="100" keywordseo="corruption-charges">corruption charges</keyword>. But the biggest factor is relevance, a perfect future-fit that can take companies ahead, according to <keyword id="67736" type="UNKNOWN" weightage="100" keywordseo="Industry-experts">industry experts</keyword>. In a difficult <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword>, companies are compelled to twist and turn to keep track of profitability and their requirements change accordingly. Hence, their leaders have to adapt, shape up or ship out, as the case might be.<br />
<br /> India is no exception and business leaders across the country have been frequently ‘released’ by industry giants. Many of them leave with ‘immediate effect’ while others are on garden leave or worse still, waiting for their predecessors to turn up (just like Ballmer). Yet, most of the C-Suite executives are tight-lipped about their departures, at least here in India. We are yet to come across an announcement like the one made by <keyword id="384914" type="PERSON" weightage="60" keywordseo="Groupon">Groupon</keyword>’s founder and former CEO <keyword id="488139" type="PERSON" weightage="60" keywordseo="Andrew-Mason">Andrew Mason</keyword>. But exit happens all the same – be it discreet or blatant. Here’s a quick look at some of the top-notch C-Suite executives from India who parted ways with their respective companies in 2013, their official exit lines and what happened behind the scene.

Strife At The Top: These
11 C-Suite Execs From India
Were ‘Let Go’ In 2013

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Hollis Johnson/Business Insider</span></p><p class="caption">The Model 3 could be made in China.</p></div><p></p></div></div></strong></p><ul><li><strong>China is easing a decades-old rule governing auto manufacturing by foreign companies in the country and Tesla could benefit in a big way. </strong></li><li><strong>Electric carmakers will see the rule changed this year.</strong></li><li><strong>That move benefits <a href="http://www.businessinsider.com/category/tesla">Tesla</a>, but the company still has to find the money to invest in a new factory.</strong></li></ul><p><br />Since the 1990s, China has required foreign automakers to engage in joint-ventures with Chinese companies in order to sell US-badged vehicles in the Middle Kingdom.</p><p>No JV and you pay a 25% import tax. The most prominent, JV-less US automaker that has to pay the tax is <a href="http://markets.businessinsider.com/stocks/tsla-stock">Tesla</a>, which has a single assembly plant in California.</p><p>China is a big growth market, so this <a href="https://www.wsj.com/articles/china-to-ease-rules-on-foreign-auto-makers-1523963345?mod=searchresults&amp;page=1&amp;pos=2">Wall Street Journal report</a> is good news for Tesla: the JV rules will be phased out completely by 2022, and for electric-car manufacturers this year.</p><p><span>"Tesla, which has been struggling to complete a deal to open a plant in China, could be the chief foreign beneficiary of the changes announced Tuesday, if indeed they clear the way for the electric-car maker to open a wholly owned company here," the WSJ's Trefor Moss wrote.</span><span></span></p><p><span>Actually, it's sort of good news for Tesla. If the carmaker now wants to do local automaking in China, it will have to absorb most or all the cost of building a plant. That could mean billions, with manufacturing not coming online for several years at the earliest.</span></p><p><span>Meanwhile, the established JV partners, such as Volkswagen and General Motors, can either stick with the cost- and tech-sharing model that's long existed, or go ahead and set up their own factories. GM, for example, sold more vehicles in China than in the US last year and made $2 billion in the country.</span></p><p class="tagline">Get the latest Tesla stock price<a href="http://markets.businessinsider.com/stock/TSLA-Quote"> <strong>here.</strong></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/tesla-model-3-best-worst-features-elon-musk-2018-2">The best and worst things about the Tesla Model 3</a></h3>        <div>                    </div>    </div>

Tesla might have just won a victory in China - but it will be expensive

<p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div><ul><li><strong>Donald Trump Jr. tried to teach his daughter a lesson on socialism&#xa0;using her Halloween candy.</strong></li><li><strong>It did not go over well.</strong></li></ul><p><br>Donald Trump Jr. took to Twitter on Halloween to let the internet know he was teaching his 3-year-old daughter Chloe a lesson on socialism.</br></p><p>Trump Jr. wrote that he was "going to take half of Chloe's candy tonight" and "give it to some kid who sat at home."</p><p>"It's never too early to teach her about socialism," he wrote.</p><p>The internet, predictably, roasted President Donald Trump's son for his post, which had more than 63,000 replies and 18,000 retweets as of Wednesday morning.</p><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div><div></div>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/billionaire-tom-steyer-releases-ad-video-donald-trump-impeachment-2017-10">A billionaire spent $10 million on an ad calling for Trump's impeachment</a></h3>        <div>                    </div>    </div></hr>

The internet is roasting Donald Trump Jr. after he tried to teach his daughter a lesson on socialism with her Halloween candy

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Getty Images</span></p><p class="caption">Skyline of Beijing, China.</p></div><p></p></div></div></p><ul class="summary-list"><li>Mikkel Hippe Brun is the co-founder and SVP for APAC at <a href="https://tradeshift.com/">Tradeshift</a>. He just spent five years establishing the company's presence in China and says he made every mistake possible along the way, including the ones he was warned about.</li><li>China is arguably the world's toughest market to break into, he writes - just ask Google, Facebook and thousands of other Western businesses that have failed here. But the potential upside is huge when you consider the company's vast and expanding digital market.</li><li>Here are 9 tips he says will help anyone who hopes to do business in China. One key piece of advice: Master the art of <em>guanxi,</em> the Chinese system of trusted and highly transactional relationships. </li><li><span data-sheets-value="{" Business="" Insiders="" homepage="" for="" more="" stories.="" data-sheets-userformat="{" Helvetica="" Arial="" sans-serif=""><a href="https://www.businessinsider.com/?hprecirc-bullet" target="_blank" rel="noopener">Visit Business Insider's homepage for more stories.</a></span><span data-sheets-value="{" Business="" Insiders="" homepage="" for="" more="" stories.="" data-sheets-userformat="{" Helvetica="" Arial="" sans-serif=""></span></li></ul><p>There's a <a href="https://www.starwars.com/video/do-or-do-not">scene</a> in "The Empire Strikes" back where Luke's X-wing fighter sinks into the Dagobah swamp and Yoda encourages him to use the Force to retrieve it. Despondent, Luke says he'll give it a try. "Do. Or do not," Yoda says. "There is no try."</p><p>I was reminded of this line often over the past five years as I set up my company's business in China. When you realize that another potential joint-venture partner only wants your IP, or the regulations for your industry change for the third time in a year, it feels a lot like you're sinking into a mire. But in China, there are no points for trying.<br /><br />This is arguably the world's toughest market to break into - just ask Google, Facebook and thousands of other Western businesses that have failed here. But the potential upside is huge: China's astronomical growth may have slowed, but it still produced a new tech unicorn every 3.8 days last year. This is a vast and expanding digital market.</p><p>No amount of advice will make launching a company in China easy - I took courses, read books, and still made every mistake I was warned about. But our business is finally on firm ground. We have three local offices and 100 staff, and we're helping brands like Volvo, Valeo and Kering (owner of Gucci) to navigate China's Byzantine trading system.</p><p>Here are nine lessons I learned about setting up a business in China. I hope this list will allow others to learn from their mistakes quickly, and perhaps avoid a few altogether.</p><h2>1. Choose a JV partner with great care; many just want your technology and ideas</h2><p>We were approached by one suitor who asked us to be the business service layer for a satellite broadband network they were launching. At one point they asked us to install an instance of our software in one of their data centers - a huge red flag in China, where IP theft is rampant. After running around in circles for months, we realized they were using us to explore new ideas for themselves.</p><h2>2. Appoint a tenacious leader</h2><p>Whoever runs your China business will fall on their face a dozen times and feel like giving up. Luckily I'm a cofounder of our company, so I didn't really have that option, but I certainly felt like it. In China, you learn by doing, and that takes resilience. Appoint a local leader who will be committed to the task and won't turn tail when things get tough.</p><h2>3. Hire a government affairs expert</h2><p>A government affairs expert can advise you where to locate for the most favorable tax benefits and conditions. We were advised to locate in Suzhou, a "small" industrial trading city outside Shanghai with 11 million inhabitants.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Courtesy of Mikkel Hippe Brun</span></p><p class="caption">Mikkel Hippe Brun.</p></div><p></p></div></div></p><h2>4. Give up your quaint "win-win" mindset</h2><p>In China, it's all about leverage and getting the upper hand. That means having a big stick to go with your carrot. Our stick is a stock warrant in Tradeshift globally - a partner of ours can only exercise that warrant if they continue to give us what we need, including use of their brand and help with licensing and regulatory issues. Their success depends on ours, and that gives us control of the relationship.</p><h2>5. Appoint local managers, and give them the authority to succeed</h2><p>"Seagull managers" who fly in, dump on everyone and fly out, don't work in China. Your people on the ground need the autonomy to make decisions fast or they'll be outrun by local competitors. As general manager, I set the strategy but our local leaders make their own decisions. Layers of bureaucracy will slow you down. Your local team knows best how to operate in China, so give them the power to do so.</p><h2>6. Replicate all global functions locally</h2><p>It's important to replicate all global functions, such as sales, HR and professional services, locally. These divisions report up to me and have strong dotted lines to the global organization, but they have their own rules and procedures. China is the only region in the world where we do this, but it's necessary because the environment is unique. Your global teams won't understand how to operate in China.</p><h2>7. Master the art of <em>guanxi</em></h2><p>This is the Chinese system of trusted relationships, and it's highly transactional. Someone helps you, and a year later their brother-in-law asks you to repay the favor. It's like an invisible scorecard of who helped whom. It's a useful system for solving problems and opening doors, but you have to play the game.</p><h2>8. Budget for significant legal costs</h2><p>Different cities in China have different rules and regulations, from forming a wholly foreign owned enterprise (WOFE) to employment law. That adds a lot of red tape, and you will need Chinese lawyers to help you navigate it.</p><h2>9. There is no secrecy in China</h2><p>Assume everything you write is on a postcard for all to see. There's no expectation of privacy, so handle sensitive communications offline.</p><p>China is a glittering prize for Western CEOs. It's a thrilling environment in which to operate, but it requires a combination of local knowledge, good contacts, flawless execution and patience to succeed. Most of all, you need to master the balance of deep partnerships with a strongarm approach that allows you to retain control. Don't be deterred, but don't be half-hearted either. There is no trying in China. Be committed and you can succeed.</p><p><em>Mikkel Hippe Brun is the co-founder and SVP for APAC at Tradeshift, which democratizes business through technology. </em></p><p> </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/karlmann-king-worlds-most-expensive-suv-2019-4">The Karlmann King is a $2 million enormous ultra-luxury SUV built upon a Ford F-550</a></h3>        <div>                    </div>    </div>

China is a glittering prize for Western CEOs, but Google, Facebook and thousands of other big businesses fail there. Here are 9 tips that helped one startup exec succeed against the odds.

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