Thanks for taking the time to respond.
Actually, don't have any fixed idea at this point in time. I think there are plenty of offshore options and ultimate choice would most probably depend upon existance of a major bank and minimum balances required by them.
Hong Kong comes as a solid (and not notorious yet) destination, with foreign source income exempt from Income Tax, so we will have to pay tax only on profits from services provided to HK residents.
But all that is open....what I am trying to find out is our legal requirement for creating a small company abroad and complainances (if any) at the Indian end.
With best regards.