Moderators Marianne Granhoj, Kromann Reumert George Waggott, McMillan LLP. IBA Washington September 19, 2016

Transcription

1 Moderators Marianne Granhoj, Kromann Reumert George Waggott, McMillan LLP IBA Washington September 19, 2016

2 Avik Biswas, Indus Law Raquel Florez, Freshfields Bruckhaus Deringer Alfredo Kupfer, Sanchez Devanny Eseverri Nicole Van Ranst, Marx Van Ranst Vermeersch & Partners

3 Computer Hardware IT Services & Consulting Software Communications Equipment Semiconductors

4 1. Fastest Growing U.S. Occupations: ,500 new jobs / total 4.4 million workers 2. Wide range of new technologies and skills wipe out some jobs Robotic automation replacing lower skilled jobs 60% of Electrical & Electronics salaried workers in S.E. Asia at risk Technology enables re-shoring in manufacturing, textiles Production of physical goods moves closer to markets Sources: U.S. Bureau of Labor Statistics; ILO July How Technology is Changing Jobs and Enterprises

5 India s technology generated US$143 billion in revenue during FY15 IT sector contribution to India s GDP rose to 9.5 % in FY15 from 1.2 % in FY98 India third among global start-up ecosystems with more than 4,200 start-ups 2015 rankings (exit values and growth in venture funding): Bangalore second only to Berlin in the Global Startup Ecosystem Growth Index

6 India is largest partner destination globally for the IT industry - about 67 per cent of the market : The IT industry grew at a Compound Annual Growth Rate (CAGR) of 8.3 per cent Microsoft Ventures: incubate 500 startups Intel: investing $62 million in InternetOfThings Biggest advantage: Availability of high technical skillsets, proficiency of English and a get it done business culture

7 20 th Century Concepts: EITHER Worker OR Contractor New Concepts A Third Category?

8 CORPORATE AND STRUCTURING ISSUES Who is the client? Which entities are potential employers? Tax and regulatory: Where are you carrying on? Financing: Any concerns with raising money?

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10 TRabajador Autonomo Economicamente DEpendiente 1.Independent contractor 2.Regularly working for specific client 3.At least 75% income from client 4.Stipulated rules for severance 5.Disputes dealt with in employment tribunal

11 Context Driving Sectoral Changes 1.NAFTA: cross-border has trade tripled since Selected Winners: increased foreign direct investment (now $100 billion) in sectors such as automotive and technology 3.Legal Change: Broad government reforms

12 Sixth largest in world After China/US/Japan/South Korea/Taiwan Dominated by OEM assembly Smartphones TV capital of the world Third largest computer manufacturer

13 Consumer goods made near markets Large domestic market ¼ of US consumer goods built in Mexico About 1 billion people in Americas

14 Working Time Flexibility and Retention IP and IT Rights Termination

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16 The HR/Corporate context Who is the client? Options for all my friends Unique tax rules Challenges upon termination

17 Sand Hill Road s Wish List 1.Productive Skilled Labour 2.Enforceable Legal Rules 3.Easy to hire and fire 4.No class actions 5.Accomplished advisors

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19 Moving Up the Global Competitiveness Table 1.Labo(u)r market efficiency 2.Technologicial readiness 3.Innovation Concrete Reforms 1.Anti-corruption regime 2.Streamlined labor law 3.Pro-startup tax and corporate reforms

20 What Makes for Thriving Startups? How does law impact business decisions?

21 What s Next?

22 Moderators Marianne Granhoj, Kromann Reumert George Waggott, McMillan LLP IBA Washington September 19, 2016