What are India's corporate tax rates?
The domestic corporate tax rate is 33% on taxable income above Rs1 million (US$25,000) and 42% on international corporations.

Does India have a good network of double tax agreements?
The country has signed treaties with more than 70 countries.

Are there any other tax liabilities in India?
Foreign subsidiaries pay a 20% withholding tax if the company is headquartered in a jurisdiction with which India has no double tax treaty.

What are the main types of India company available for incorporation?
An India private limited company and a Special Economic Zone (SEZ) company.

What are the main characteristics of a company set up in an SEZ?
An SEZ company is completely tax-free for the first five years from incorporation and a is liable to only 50% tax for a further two years. 100% foreign ownership is also permitted.

What other incentives do India's SEZs offer to investors?
No import licences are required for companies operating in an SEZ. No duties are levied on the procurement of capital goods, raw materials, consumables and spares etc, either from overseas or from the domestic market in India. In addition, an SEZ company can carry losses forward.

Where are the Special Economic Zones located?
These are located at Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra), Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Noida (Uttar Pradesh), Indore (Madhya Pradesh), Manikanchan – Salt Lake (Kolkata) and Jaipur. 

Are there any sectors closed to foreign investment in India?
The following industries are closed: atomic energy, lottery business and gambling.

Are there any ownership restrictions on an Indian private limited company?
100% foreign investment is allowed if the company is formed as a subsidiary of a foreign company.

What is the minimum number of directors required for an Indian company?
India company law requires a minimum of two directors.

What is the minimum number of shareholders required for an Indian company?
India company law requires a minimum of two shareholders.

Are there any minimum capital requirements for an Indian company?
India company law requires minimum paid up capital of US$2,100.

Does an Indian company have any reporting requirements?
All Indian companies must undergo an annual audit.

 

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