India (IN)
India is the world's most populous nation and a fast-rising global power — a vibrant federal republic of extraordinary cultural, linguistic, and geographic diversity.
Capital: New Delhi
Region: Asia
Language: Hindi
Currency: INR (₹)
Cost of living: Very affordable (index 24)
Emergency: 112
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Business Setup
Start a business or go freelance in India.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain Employment Visa if you are a foreign national — freelancing for Indian clients requires appropriate work authorisation. OCI holders can freelance freely.
- 2 Apply for PAN card (Form 49AA for foreigners) — mandatory for all income tax and financial transactions.
- 3 Register for GST (Goods and Services Tax) if annual turnover exceeds ₹20 lakh (₹10 lakh for some northeast states) for services, or ₹40 lakh for goods.
- 4 Open an NRO (Non-Resident Ordinary) bank account or regular savings account for receiving payments.
- 5 Maintain proper books of accounts — all income and expenses must be documented.
- 6 File Income Tax Return (ITR-3 for business/professional income) by July 31 each assessment year.
- 7 Pay advance tax quarterly if annual tax liability exceeds ₹10,000.
- 8 For consulting/professional services exported to foreign clients: can claim GST exemption as export of services (zero-rated) if payment received in foreign currency through banking channels.
Tax registration
PAN card is the primary tax registration for individuals. GST registration mandatory above ₹20 lakh annual turnover (₹40 lakh for goods). File GST returns monthly (GSTR-1, GSTR-3B) or quarterly under composition scheme. Income tax: file ITR-3 or ITR-4 (Presumptive taxation under Section 44ADA for professionals — 50% of gross receipts assumed as profit, no bookkeeping required up to ₹75 lakh receipts from FY2025-26). Presumptive tax is very convenient for freelancers.
VAT threshold
GST registration mandatory above ₹20 lakh annual turnover (services). Zero-rated for export of services to foreign clients paid in foreign currency.
Invoicing
All invoices must include: supplier name, address, PAN, GSTIN (if registered), invoice number, date, description of service, amount, GST breakdown (CGST+SGST for domestic; IGST for interstate; 0% for exports). For export of services: include "Supply Meant for Export Under Bond/LUT Without Payment of IGST." Electronic invoicing (e-Invoicing) mandatory above certain thresholds.
Social security
Self-employed individuals can voluntarily contribute to NPS (National Pension System) for retirement savings. Employer-side EPF is not applicable for sole proprietors. Professional Tax applies to all self-employed individuals in applicable states (up to ₹2,500/year). No mandatory social security contribution for pure freelancers without employees.
💡 Foreign freelancers: be careful about visa compliance — working for Indian clients on a Tourist Visa is illegal. OCI holders are the most flexible — no work restrictions. FEMA compliance required for all forex transactions. Invoicing foreign clients in USD and receiving payment via SWIFT/Wise is common and legal for those with appropriate work authorisation. Repatriation of professional income abroad is permitted with bank compliance (Form 15CA/15CB from CA). India's gig economy is booming — platforms like Upwork, Toptal, and Indian platforms like Fiverr India are widely used.
🏢 Business Structures
Pvt Ltd · Private Limited Company
Private Limited Company
No minimum paid-up capital required (as of Companies Act 2013)
Min. capital
7–15 working days via MCA21 portal (Ministry of Corporate Affairs)
Setup time
Liability: Limited to shareholding. Members not personally liable for company debts.
Setup cost: ₹7,000–25,000 (government fees) + professional fees ₹15,000–50,000
Best for: Most suitable for foreign companies and expat entrepreneurs setting up a business in India. Allows 100% FDI in most sectors. Requires minimum 2 shareholders and 2 directors. At least 1 director must be resident in India for 182+ days.
LLP · Limited Liability Partnership
Limited Liability Partnership
No minimum capital requirement
Min. capital
10–20 working days via MCA21 portal
Setup time
Liability: Limited liability for partners. Partners not personally liable for other partners' actions.
Setup cost: ₹5,000–15,000 (government fees) + professional fees
Best for: Professional services firms. Simpler compliance than Pvt Ltd. However, FDI (Foreign Direct Investment) in LLPs requires government approval in most cases — less suitable for foreign investors.
OPC · One Person Company
One Person Company
No minimum
Min. capital
7–10 working days
Setup time
Liability: Limited liability
Setup cost: ₹5,000–10,000 (government fees)
Best for: Solo Indian resident entrepreneur. Foreign nationals NOT eligible to form an OPC in India — must be a resident Indian citizen.
Branch Office · Branch Office of Foreign Company
Branch Office
RBI approval required. Foreign company's accounts must show profit in preceding 5 years.
Min. capital
4–8 weeks (RBI approval required)
Setup time
Liability: Parent company is fully liable for all Branch Office obligations.
Setup cost: ₹20,000–50,000 (government fees) + significant professional fees (₹1,00,000+)
Best for: Foreign companies wanting to operate in India without creating a separate legal entity. Limited to activities of the parent company. Must remit profits to parent. Requires RBI (Reserve Bank of India) and MCA approval.
Liaison Office · Liaison Office / Representative Office
Liaison/Representative Office
Not applicable — cannot earn revenue in India
Min. capital
6–12 weeks (RBI approval required)
Setup time
Liability: Parent company liable
Setup cost: ₹15,000–30,000 (government fees) + professional fees
Best for: Foreign companies wanting to explore the Indian market, promote their products/services, act as communication channel. Cannot conduct any commercial activity or earn revenue. All expenses funded from abroad.
WOS · Wholly Owned Subsidiary
Wholly Owned Subsidiary (Private Limited)
No statutory minimum
Min. capital
10–20 working days
Setup time
Liability: Subsidiary is a separate legal entity — parent not directly liable
Setup cost: ₹10,000–25,000 (government fees) + professional fees
Best for: Most common structure for multinational companies entering India. 100% foreign owned in most sectors (automatic route — no government approval for most sectors). Full control for parent company.
Business Setup
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