What is Reverse Flip?

A reverse flip is when an Indian startup merges its foreign holding company into its Indian entity, making India the global headquarters. Initially, startups flipped abroad to access global investors and IPOs.

Now, with improving Indian regulations, IPO opportunities, and rising foreign compliance costs, companies like Meesho are reversing the structure.

The process requires National Company Law Tribunal (NCLT) approval under Section 234 of the Companies Act, 2013, and compliance with FEMA, tax, and corporate laws.

It also involves legal complexities such as tax liability, valuation, and shareholder approvals, but offers long-term benefits like simplified governance and access to Indian capital markets.