R. Tulsian & Co, a Kolkata-based 50-year-old chartered accountancy and legal services firm on Tuesday announced the acquisition of Algebraa Bookkeeping, a Dubai-based accountancy practice firm. It has earmarked ₹25 crore for additional foray. Shashwat Tulsian, managing partner, R. Tulsian, said while the company had been working with international clients, this would be its first overseas office.
“We have plans to set up offices in the Gulf Council Countries of Oman, Bahrain, Kuwait and Qatar by end 2019.. we want to have a six-country practice,” he said. The Dubai acquisition will enable the firm to tap the UAE and Saudi Arabia.
He said that the VAT roll out in Dubai and the proposed indirect tax roll outs in the GCC present great opportunity. “Like Dubai we are looking for practices in these countries and expect a ₹65 crore revenue in the first year , followed by ₹150 crore by end 2019”, Mr. Tulsian said. He however declined to disclose the amount in the deal.
The company is retaining 75 employees of Algebra Bookkeeping and will relocate 10 senior managerial employees from its 150-strong Indian team to help during the transition. The acquired company is owned by an Indian.
Rohit Tulsian, founding partner of the company, said that limited accounting standards in Dubai, there was a demand for accounting firms due to the presence of a large number of multinational companies who had accounting requirements.
He said that VAT has just been rolled out in Dubai since January 2018 and this was a great time to be in that market. “While it is now a single rate structure, but penalty for violation is very high”, he informed. The acquisition will also provide opportunity for outsourcing some of the jobs to India, he said.
The services offered by Tulsian include tax advisory and compliance, corporate structuring, international transactions, FEMA laws and transaction advisory services.
