After the division of the state, registered offices (RO) of various companies shifted from Hyderabad to Andhra Pradesh. Reportedly, there are 800 Companies were shifted their ROs to the Andhra Pradesh since last 2 months. Some more companies would follow them in coming days. As per market sources, there are two reasons for this shifting. Most of the entrepreneurs are from Andhra Pradesh seeks to pay taxes including VAT for the development of Andhra Pradesh. Second one is companies have to enjoy tax benefits and other subsidies for their development in the AP.
Companies seek to enjoy the subsidies in new state. Avanthi Feeds which is listed in both BSE and NSE is the first big company to shift RO to Andhra Pradesh. Most of the practicing Chartered Accountants (CA) and Company Secretaries (CS) in Hyderabad are from Andhra Pradesh. They want to shift their offices to AP and change the Hyderabad offices as their branch offices. They wish to pay IT and Service Tax to their state Andhra Pradesh by shifting their base.
AP gets both registration of new companies and shifting of existing Registered Offices from Telangana to Andhra Pradesh. Since the formation of Telangana (June 02nd), there are 75 new companies have registered. For the same period, just one new company has registered in Telangana. Some of the Analysts believed that there is loss to Telangana by all these. Impact of shifting the ROs will be more on Telangana. Telangana entrepreneurs demand the Government the immediate steps to stop the flowing of ROs.