How to determine the residential status of a company?

Place of effective management determines company residency; ABOI test and board meeting location shape POEM assessment.

A company is resident if it is an Indian company or if its place of effective management is in India, defined as where key management and commercial decisions for the entity as a whole are in substance made. The POEM guidelines include an Active Business Outside India test under which companies engaged in active business abroad are presumed to have POEM outside India when the majority of board meetings are held outside India, subject to conditions on passive income, assets, employees and payroll; non ABOI companies require a two stage inquiry to locate decision making.