# India

 Country code: IN · Currency: INR · Language: English

**Pros**
- Large, young, and increasingly digital workforce offering significant human capital for private enterprise.
- Ongoing deregulation and simplification of the tax code to encourage foreign direct investment and entrepreneurship.
- Rapid expansion of private infrastructure projects and digital public goods reducing transaction costs for businesses.

**Cons**
- Persistent bureaucratic hurdles and complex regulatory compliance requirements slowing down business operations and market entry.
- High levels of protectionist trade barriers and occasional unpredictable shifts in government economic policy.
- Inconsistent enforcement of property rights and slow judicial processes for resolving commercial disputes.

Long story short: Here, the administration has a god complex: between permits demanded in triplicate and the inspector who drags his feet unless you slip him something, setting up a company can feel like a bureaucratic treasure hunt. Add a tax bite that jumps fast the moment you outgrow a tiny shell structure.

On the flip side, the banking system is solid and wildly digitized, payments happen in one tap, and in the posh pockets of Delhi or Mumbai, corruption barely touches you directly anymore.

Besides that: food that will ruin every other cuisine for you, landscapes that stop you in your tracks, safety that won't keep you up at night in the wealthy areas, and a domestic market so massive it gives you vertigo.

## Will your income be taxed?

Long story short: YES, A LOT.
**India** shears personal income hard, peaking at **30%**. Residency rules are the classic kit (day counts, economic ties, habitual abode), so if you actually live here, you hand over the full schedule.

The state shows up early, and with a receipt book.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 0 → 30% | progressive · 7 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 4,180 | exempt |
| 4,180 – 8,360 | 5% |
| 8,360 – 12,540 | 10% |
| 12,540 – 16,720 | 15% |
| 16,720 – 20,900 | 20% |
| 20,900 – 25,080 | 25% |
| 25,080 + | 30% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
**India** takes a light trim on capital gains (**12.5%** at the top), with no annual wealth levy and no inheritance regime.

Your portfolio compounds with barely any friction; the state only shows its face when you sell. And even then, politely.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 12.5% | progressive · +15% long-term capital gains |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 1,306 | exempt |
| 1,306 + | 12.5% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 10% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 10,450 | exempt |
| 10,450 + | 10% |

| Metric | Value | Detail |
| --- | --- | --- |
| Interest income | 30% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 4,180 | exempt |
| 4,180 – 8,360 | 5% |
| 8,360 – 12,540 | 10% |
| 12,540 – 16,720 | 15% |
| 16,720 – 20,900 | 20% |
| 20,900 – 25,080 | 25% |
| 25,080 + | 30% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | FLAT TAX | Rate: 30% · Income from the transfer of Virtual Digital Assets (VDAs) is taxed at a flat 30% rate plus a 4% health and education cess. No deductions are allowed except for the cost of acquisition. Losses from VDA transactions cannot be set off against any other income or carried forward to future years. A 1% Tax Deducted at Source (TDS) applies to most transactions exceeding specified thresholds. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | SIGNED | committed but not yet enforced |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **India** is **25%**, no IP-box mercy, VAT at **n/a** on top.

Operationally, running a company here is fine; fiscally, the state helps itself to a fat slice of every unit of profit. You do the work, they skim the cream.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 25% | progressive · +4% health and education cess |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 104,500 | 25% |
| 104,500 – 1,045,000 | 25% |
| 1,045,000 + | 25% |

| Metric | Value | Detail |
| --- | --- | --- |
| VAT standard rate | NONE | no general VAT · no consumption tax framework |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · India follows Common Law principles where a sole shareholder/director of a solvent company is generally not criminally liable for using corporate assets for personal use, as the 'dishonest intent' required for Criminal Breach of Trust (Section 316 of the Bharatiya Nyaya Sanhita / Section 405 IPC) cannot be established when the sole owner consents. Such acts are treated as civil breaches of fiduciary duty under Section 166 of the Companies Act 2013 or as 'deemed dividends' for tax purposes under Section 2(22)(e) of the Income Tax Act. |
| Shareholders privacy | PUBLIC PAYWALL | Ministry of Corporate Affairs (MCA) |
| Directors privacy | PUBLIC | Ministry of Corporate Affairs (MCA) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Private Limited Company. The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees & Stamp Duty | USD 63 |  |
| Digital Signature Certificates (DSC) for Directors | USD 42 |  |
| Professional Fees (Incorporation, Legal Drafting & FDI Compliance) | USD 418 |  |
| Total | USD 522 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**India** has a *moderate* **46**-treaty network, but no participation exemption: dividends from subsidiaries land straight in the corporate schedule (**25%**).

Fine for operational subsidiaries; as a pure holding base, you're feeding the local taxman at every distribution.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 20% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 20% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 43 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: SOME.
**India** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 12 years | available path to naturalisation |
| Marriage | — | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
**India** signed *every exchange framework that matters* and runs a *public corporate registry*. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

**Multilateral reporting frameworks — 4/9 active · 3 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2017 |
| CARF | None | — |
| FATCA | In force | 2014 |
| MLI | In force | 2019 |
| BEPS | Signed | — |
| MAAC | In force | 2012 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**India** is *clean on every major blacklist* (FATF, EU, France, Spain, Portugal, Brazil) and sits *inside* the FATF club.

Wiring money to or from here raises zero eyebrows: no flags, no extra questions, no compliance officer waking up. Reputationally, a non-event.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **India** is *locked down* (RSF rank **\#151**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 151/180 | score 32 · ↑ 8 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Digital Rupee

The main motive is increase efficiency and decrease risks by utilizing instant settlement and programmability to return funds at specific times without delays.

RBI

   PILOT   —   [announce →](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61485 "Announcement")

 programs 1

## Connected to the world?

Long story short: SOMEWHAT CONNECTED.
**India** is only half-plugged in, and it's the half that hurts. *Stripe* won't take local businesses: to charge cards you'll be shopping for workarounds (a foreign entity, a local PSP, a merchant of record).

*Amazon*, at least, delivers to your door. **7/11** of the services we track run here.

**Accept payments — 3/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 2/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Available | business banking |

**Buy and sell on Amazon — 2/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to India. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

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  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

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