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Asia Common Law

New manufacturing entrants, India

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
Start setup {placement} 4 min · no card required
Corp tax
25.17%
Fastest setup
20 days
Tax treaties
94
Region
Asia

What you'll need

  • Resident director required
  • Local registered office required
  • Economic-substance test applies
  • Minimum capital: INR 1
  • Administrative language: English and Hindi
  • Legal system: Common law

Tax and treaty profile

  • Corporate tax 25.17%
  • Tax treaties 94
  • VAT rate 18%
  • Withholding on dividends 20%
Key treaty partners
United StatesUnited KingdomSingaporeMauritiusNetherlandsGermany

Banking and payments

  • Banking takes 2 to 4 weeks with KYC
  • Stripe supported

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