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World's fastest growing major economy with tech talent
Region
ASIA PACIFIC
Corporate Tax
22%
Setup Time
3 weeks
Currency
INR
India, the world's most populous country, offers access to a 1.4 billion person market undergoing rapid digitization. Company registration involves navigating bureaucracy, but the scale and growth potential justify business setup investment for committed entrants.
Major cities offer vastly different experiences, from commercial Mumbai to tech hub Bangalore to political Delhi. Hindi and English are official languages among 22 recognized languages. The climate varies from tropical to temperate.
Healthcare ranges from world-class private facilities to limited public services. Safety varies significantly by location. The cost of living is low by international standards, with significant variation by city and lifestyle.
Cultural adjustment is substantial but rewarding for those engaging with India's complexity.
Corporate tax rates range from 22-25% for domestic companies, with higher effective rates for foreign companies in some cases. Personal income tax reaches 30%. GST applies at various rates up to 28%.
The Indian rupee is managed by the Reserve Bank of India with capital controls. "Make in India" initiatives support manufacturing. The startup ecosystem has produced numerous unicorns. FDI is restricted in certain sectors.
Company registration through the Ministry of Corporate Affairs occurs via SPICe+ portal. Private limited companies are the standard vehicle. Foreign ownership is permitted with sector-specific restrictions.
Company formation takes approximately 2-4 weeks. Minimum capital requirements are nominal. At least two directors are required, with at least one resident in India. Annual compliance involves substantial filings.
India's crypto regulatory position has fluctuated. A heavy tax regime applies to crypto transactions at 30% on gains plus 1% TDS on trades. While not banned, the regulatory environment discourages large-scale crypto business formation.
Regulatory clarity remains uncertain with ongoing policy discussions.
Gambling regulation varies by state, with most prohibiting gambling except horse racing and lotteries. Some states have licensed online gambling. The fragmented gambling license environment creates complexity for operators.
Bureaucracy, infrastructure challenges, and regulatory complexity require substantial local expertise. The market scale compensates for entry difficulty for patient investors. Local partnerships often facilitate success.
Banking access requires significant documentation for foreign-owned entities. Professional services are extensive in major cities. India's complexity rewards long-term commitment.
India suits businesses targeting the domestic market, technology operations leveraging talent pools, and manufacturers seeking scale for their business setup.
Local: Pvt Ltd
Local: Ltd
Local: LLP
Local: Branch
| Corporate Tax Rate | 22% |
| Personal Income Tax Rate | 30% |
| VAT / Sales Tax | 18% |
| Capital Gains Tax | 12.5% |
| Withholding Tax | 20% |
| Reduced Corporate Tax Available | Yes |
| Non-Resident Withholding Exempt | No |
| Tax Treaty Network | Yes |
| Banking Access | HIGH |
| Financial Privacy | LOW |
| Currency Controls | SOME |
| Local Bank Account Required | No |
| Non-Resident Bank Account Allowed | Yes |
| Physical Presence for Banking | Yes |
| Banks Restrictive (High Risk) | No |
| AML Officer Required | No |
| MLRO Required | No |
| Compliance Officer Required | No |
| Data Protection Officer Required | No |
| Bookkeeping Frequency | Annual |
| Local Bookkeeping Required | Yes |
| Mandatory Audit | Yes |
| License Required | Yes |
| Local Director Required | No |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | No |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF Travel Rule - full compliance required for all transactions regardless of amount |
| Business Plan Required | AML/CFT policies, KYC procedures, transaction monitoring systems, compliance infrastructure documentation |
| Personnel Required | Principal Officer, Designated Director for AML compliance |
| Insurance Required | No |
| Remote Incorporation Possible | Yes |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 1 |
| Min. Directors | 1 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | FIU-IND registered entities list not publicly available |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | No |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Financial Intelligence Unit - India (FIU-IND) under Ministry of Finance |
| Licensing Fee | $0 |
| Licensing Fee Details | No government registration fee for VASP registration with FIU-IND. Professional fees for compliance setup typically INR 500,000-1,500,000 |
| Permitted Business Models | Crypto Exchange, Custody, Wallet Provider, Payment Processing |
| Permitted Activities | Exchange of virtual digital assets for fiat, exchange between virtual digital assets, transfer of virtual digital assets, safekeeping/administration of virtual digital assets |
| Restricted Activities | No explicit prohibitions but stringent compliance requirements |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |
| Derivatives Allowed | No |
| RWA Tokenization Allowed | No |
| App Store Listing Allowed | Yes |
| Crypto Custody Allowed | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | No |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $0 |
| Capital Maintained in Account | No |
| Compliance Program Required | Yes |
| Travel Rule Compliance | N/A |
| Business Plan Required | Detailed business plan, technology platform details, financial projections, promoter credentials required |
| Personnel Required | Compliance Officer, qualified management team |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | No |
| Min. Shareholders | 2 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | Yes |
| Registry Public | No |
| Registry Access | State-level gaming authorities maintain records |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | Yes |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | State-level authorities: Finance Commissioner (Nagaland), State Government (Sikkim, Goa) |
| Licensing Fee | $10,000,000 |
| Licensing Fee Details | Nagaland: INR 10 lakhs per game for 3 years or INR 50 lakhs per annum for multiple games. Sikkim: INR 52 crores annual fee for online gaming. Goa: INR 20 lakhs for casino license |
| Permitted Business Models | B2C (limited states), Online Skill Games (Nagaland), Casino (Goa, Sikkim) |
| Permitted Activities | Skill-based games (poker, rummy, fantasy sports), Land-based casinos in specified states only |
| Restricted Activities | Games of chance prohibited in most states, online betting prohibited in most states, cryptocurrency payments prohibited |
| Cross-Border Service Allowed | No |
| Physical Inspection Required | Yes |
| Player Fund Segregation | Yes |
| B2B/B2C Separate Requirements | Yes |
| License Required | Yes |
| Local Director Required | Yes |
| Local AML Director Required | Yes |
| Local Legal Address Required | Yes |
| Local Physical Office Required | Yes |
| Required Share Capital | $100,000,000 |
| Capital Maintained in Account | Yes |
| Compliance Program Required | Yes |
| Travel Rule Compliance | FATF compliant |
| Business Plan Required | Detailed 5-year business plan with financial projections, risk management framework, IT systems documentation |
| Personnel Required | At least one-third of directors with finance industry experience, Compliance Officer, Principal Officer |
| Insurance Required | No |
| Remote Incorporation Possible | No |
| 100% Foreign Ownership | Yes |
| Min. Shareholders | 2 |
| Min. Directors | 2 |
| Shareholder/Director Same Person | No |
| Registry Public | Yes |
| Registry Access | RBI website lists all registered NBFCs and payment aggregators |
| Renewal Period | Annual |
| Accounting Filing Required | Yes |
| Accounting Filing Frequency | Annual |
| Financial Statement Required | Yes |
| Financial Statement Frequency | Annual |
| Accounting Audit Mandatory | Yes |
| Compliance Audit Mandatory | Yes |
| Technical Audit Mandatory | No |
| Corporate Income Tax Applicable | Yes |
| Dividend Tax Applicable | Yes |
| Capital Gains Tax Applicable | Yes |
| Territorial Tax Regime | No |
| VAT Applicable | Yes |
| Regulators | Reserve Bank of India (RBI) |
| Licensing Fee | $50,000 |
| Licensing Fee Details | NBFC application fee: INR 50,000. Payment Aggregator: INR 15 crore net worth requirement. Various annual compliance fees apply |
| Permitted Business Models | NBFC, Payment Aggregator, Payment Gateway, Account Aggregator |
| Permitted Activities | Lending, Investment, Asset Finance, Payment Processing, Money Transfer |
| Restricted Activities | Deposit-taking (restricted), Banking activities without license |
| Cross-Border Service Allowed | Yes |
| Physical Inspection Required | Yes |