- In 2013, CA Akshay Kenkre started a Transfer Pricing and International Tax focused firm, when the concept was fairly nascent in India.
- Akshay built his client base from scratch, now serving renowned MNCs and several Unicorns.
- When Corporate Tax was introduced in the UAE, he decided to explore the new territory and established an office in Dubai in May 2023.
Bit by the entrepreneurial bug
In 2007, I qualified as a Chartered Accountant but wasn’t sure of my next move. However, I always wanted to be an entrepreneur.
I wanted to gain substantial industry experience before venturing out on my own. So, I ended up spending a good five years in the industry and the Big 4 post-qualification.
Fast forward to 2011, I made numerous business plans and scrapped those plans. Suddenly, something clicked in my mind. I figured out that the field of tax could help me realize my dream. I ultimately went in the direction of practice.
One thing was very clear in my mind, I didn’t want to do everything under the sun. I wanted to build a firm specialized in a particular service.
When I looked at the global market, I noticed that apart from the Big 4 firms there weren’t many specialized firms offering Transfer Pricing and International Tax focussed services, at least in India.
I always wanted to have the vision of building an outbound firm from India.
The seeds were sown much earlier but the vision came to life in 2013 with the establishment of TransPrice Tax Advisors, a firm focused on Transfer Pricing and International Taxation.
Niche dominated by the Big 4
Today, the field of Transfer Pricing (TP) in India has evolved tremendously. But when we commenced our journey in 2013, Transfer Pricing was just a 12-year-old concept, with only big players offering those specialized services.
(Transfer Pricing regulations were introduced in India in 2001, with the introduction of Chapter X of the Income-tax Act, 1961.)
Also, clients who use the TP services are mostly MNCs or those who are aimed at global expansion.
Acquiring clients was not very easy.
When dealing with MNCs, we often interacted directly with key decision-makers, such as managing directors, or CFOs.
On the other hand, those who truly utilized our services were the Tax Managers or Directors. If they couldn’t convince the management to entrust us with the work, they would assign it to a more well-known entity.
That’s why, in the initial years of TransPrice, gaining the attention of MNCs was challenging.
So what do we do?
Our strategy to build a client base
One thing was clear from the outset; we did not have the advantage of the Big 4 brand recognition. Therefore, our success depended on our positioning in the market.
On top of that, I was a first-generation entrepreneur and, hence had to build everything from scratch.
We did not try to engage in relentless client pitching. Instead here are the steps that we followed,
Start small:
We initially worked with smaller and medium-sized MNCs, focused on showcasing our capabilities.
Today, we have reached a position to cater to renowned industry leaders, inbound and outbound clients, startups, unicorns, and companies led by promoters in this particular sector.
Being competent:
- Transfer Pricing is a crucial aspect of International Taxation, focusing on pricing goods and services transferred between related companies.
- Dealing with TP-related services requires a high level of maturity. One has to handle the sensitive information of your clients.
- We built a competent team.
Effective communication:
- It’s important to strike the right balance in interactions with multinational clients. If you are overly aggressive with certain MNCs, you could fail to secure their accounts.
Market presence:
- Between 2016 and 2019, we authored and published four books and made multiple contributions as authors in other books and articles.
- Our first book delved into Base Erosion and Profit Shifting (BEPS), a concept that was relatively new at the time. I was one of the few authors who tackled this subject when the world was grappling to understand BEPS.
- My next two books addressed General Anti-Avoidance Rules (GAAR) in India and the fourth book centered on Transfer Pricing.
- By writing these books and showcasing our technical expertise, we let our clients decide whether they wish to work with us or not.
- Even today, we do not have a full-fledged marketing budget. Our marketing efforts primarily focus on raising awareness and providing good quality work to our clients.
Hard work and dedication:
- We invested our time in burning the midnight oil and enhancing our intellectual capabilities.
- By building internal capabilities and consistently delivering high-quality work, we naturally attracted clients through word-of-mouth referrals.
Expansion to the UAE
In the initial one to two years TransPrice had a lot of challenges, but post that it has been on an upward trajectory. We have grown significantly over the last 10 years.
By 2022, we had carved out a strong position in the Indian market; TransPrice India became a team of 25 professionals with offices in Mumbai, and Pune.
We have also been an exclusive partner in India with Quantera Global, a Dutch-based firm with a vast global network, spanning over 50 jurisdictions.
The discussions, the insights, and the business we have conducted together have been phenomenal.
On 31st January 2022, the UAE introduced Corporate Tax.
Very rarely can you witness the birth of a new tax law in a Chartered Accountant’s career.
This development gave birth to our new vision, to expand our specialized Transfer Pricing and International Tax firm into the UAE.
In May 2023 we successfully established our Dubai office with a team of 12.
Today TransPrice is a team of 6 Partners with 2 Partners in the UAE.
Want to build a specialized firm in the field of International Taxation?
Never stop learning: For professionals aspiring to build a firm focussed on Transfer Pricing and International Tax; Invest heavily in learning, both theoretically and practically.
The field demands you to stay constantly updated. You have to stay at the forefront of changes in local and global tax laws for effective client interactions.
I have made it a habit to read a section of Income Tax law or review case laws daily. I also have a keen interest in management literature and have applied management principles in practical scenarios many times.
Without this passion, succeeding in Transfer Pricing and International Tax can be next to impossible.
Stay focused: It’s easy to get distracted. Whether you’re a young entrepreneur starting or an experienced professional launching a niche Transfer Pricing-focused practice, you must learn to say ‘no.’
If someone approaches you with a request for a statutory audit, remember that your core service is TP.
Once you accept work outside this specialization, you become a general firm.
If your goal is to build an international tax firm, stay razor-focused and invest your time and intellect into this one area, and not just money.
Collaboration is key: It would be harder to build a practice alone when it comes to Transfer Pricing. Consider becoming part of a network.
We have a dedicated platform called TransPrice Alliance, providing professionals with access to this field, different procedures, and knowledge.
We support entrepreneurs in starting their Transfer Pricing practices.
Remember, TP requires careful planning, market positioning, and unwavering focus.
Advice to those who want to build a career in TP
Transfer Pricing and International Taxation are two critical components in Corporate Tax law.
Whenever a company engages in global business, these regulations come into play, which involves setting up holding company structures, establishing operational supply chains, and effectively managing those supply chains.
This specific law facilitates global business operations and helps you navigate the diverse tax laws of various countries while striving for harmonization with your own.
So you must comprehend the impact of taxes on both domestic and global levels.
