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Asia Common Law 94+ treaties

Start your company India

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Why India?

Engineering heavy startups with India teams

Section 115BAA gives a flat 22% CIT plus surcharge and cess for an effective 25.17%, with no exemption strings attached. DPIIT recognised startups get a three year tax holiday on profits under Section 80-IAC. Filing runs through MCA21 with SPICe+ forms, DIN and DSC required.

115BAA 25.17%DPIIT 3-year holidaySPICe+ filing

New manufacturing entrants

Section 115BAB drops CIT to 15% plus surcharge for an effective 17.16% for new manufacturing companies set up after October 2019 and commencing production by stated cutoffs. Production Linked Incentive (PLI) schemes stack on top in semiconductors, electronics, and pharma.

115BAB 17.16%PLI schemesManufacturing only

Patent developing R&D companies

Section 115BBF (Patent Box) taxes royalty income from patents developed and registered in India at 10%. Combined with a resident director (one director must satisfy the 182 day residency test) and 94 double tax treaties, India is competitive for IP licensing structures.

115BBF Patent Box 10%94 DTAsResident director rule

Considerations

If you need Stripe acquiring on day one

Stripe India support is limited and the RBI imposes payment aggregator rules that delay onboarding. Cross border remittance still routes via Liberalised Remittance Scheme. For instant US payment rails:

Limited Stripe supportRBI payment aggregator rulesLRS remittance limits

If you want clean banking and light admin

Indian banking requires DIN, DSC, and a resident director; GST registration at 18% adds monthly returns; ROC filings stack on tax returns. For cleaner APAC banking:

Resident director 182 day testGST 18% monthly returnsROC filing load
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