Eternity Law International Ready-made company in India

Ready-made company in India

Published:
April 6, 2020

What is included:

  • Ready-made company in India,
  • Account at a local bank,
  • Legal address

Cost: on request.

National Currency: Indian Rupee (INR).

A company is considered a resident of India if any part of its management is carried out in India.

You should pay taxes on income within and beyond India if your company is resident one. Only Indian source income is subject to the taxable funds of foreign company.

It also includes profits from the transfer of company or its part (share) if its value is based on assets within the country. Income from a foreign source received by a resident company is subject to corporate tax in the same way as income earned in India.

Foreign companies meet differences in taxation, in comparison to local companies, but their taxation is the same as permanent establishments’.

Profits of the company are subject to the corporate income tax. This also includes profits resulting from the transfer of assets based in India, even if it’s indirect. Standard operational expenses, as well as other expenses, can be exempted from income.

For local companies, the standard tax rate is 30%, and for non-resident companies and their branches – 40%. Including additional income taxes, the highest possible rate is 34.944% for locals and 43.68% for foreigners.

The Minimum Alternative Tax (MAT) is charged at a rate of 18.5% on the adjusted carrying profit of a company whose tax liabilities amount to less than 18.5% of their carried profit.

MAT does not apply to certain income of foreign companies, including capital gains on operations with securities, interest, royalties and payments for technical services.

In India, previously there was a whole system of taxes for production and sale of goods and provision of services. Due to their complexity they were replaced by the Goods and services tax (GST).

The GST offers five different categories with different rates: 0%, 5%, 12%, 18% and 28%. The legislation does not provide a standard rate, but for most services it is 18%. Some types enjoy of goods small rates, especially precious metals and stones.

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Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7