India
India: 5 company types, its taxes, banking and business environment, and what it is known for.
Forming a company
Company types in India
The 5 forms a founder can choose here, each with its own figures. Open one for its sources.
What it is known for
Where India is in the world’s top 10 on a measure anyone can check, the best rank first. Only the top is shown; a low rank is never stated.
- World’s1stWorld-leading exports Diamonds (unmounted)Diamonds, whether or not worked, but not mounted or setUS$16.5 bn · 22.5% of world exports of 120 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndWorld-leading exports Refined petroleum productsPetroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oilsUS$58.2 bn · 6.6% of world exports of 215 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s2ndDigital services ICT service exportsUS$200.3 bn of 133 economies · 2025 World Bank, World Development Indicators See the top 10
- World’s3rdWorld-leading exports Jewellery of precious metalArticles of jewellery and parts thereof, of precious metal or of metal clad with precious metalUS$12.7 bn · 10.3% of world exports of 209 exporters · 2024 CEPII BACI, January 2026 release See the top 10
- World’s5thResearch and technology Patent applications by residents63,217 of 121 economies · 2024 World Bank, World Development Indicators See the top 10
- World’s8thLogistics and freight Container port traffic19.6 million TEU of 118 economies · 2021 World Bank, World Development Indicators See the top 10
- World’s9thTax-treaty network Income-tax treaties in force96 of 100 treaty networks we hold the tax authority's own list (tax-treaties collection) See the top 10
A rank is among everything the source reports for that year, so it moves when the source adds or drops economies. Exports include goods passing through for re-export. Nothing here is a recommendation.
Doing business here
Business accounts
Providers whose own published list of countries names India. A listing means a company formed here may apply, not that it will be accepted.
Not in our records No provider's country list has been read for India.
EU listings
Two lists a bank checks when it opens an account for a company or its owner.
- EU high-risk third countries (AML)
- Not listed
- EU non-cooperative jurisdictions for tax purposes
- Not listedOfficial EUR-Lex, 52026XG01465, Annex I as of 2026-02-17
Official sites
The authorities’ own sites for India: where to register, file and check.
Blocs and agreements
The trade arrangements India belongs to, as each arrangement’s own texts state them: since when, and what each covers. What a membership means for a business is for you to judge.
- South Asian Free Trade Area
- Free trade area · since 1 January 2006
Covers goods.
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Member States comprising the People's Republic of Bangladesh, the Kingdom of Bhutan, the Republic of India, the Republic of Maldives, the Kingdom of Nepal, the Islamic Republic of Pakistan and the Democratic Socialist Republic of Sri Lanka
Regional and customs arrangements only, 36 of them; bilateral trade agreements are not yet in our records.
Tax
Company tax
Tax, and what the company owes the registry each year.
- Corporate income tax
- 25.17%
- Distributions
- Not in our records
- Audit
- Not in our records
- Small-company relief
- Not in our records
- Annual obligations
- Not in our records
- Annual registry fee
- Not in our records
GST
The tax on what the company sells in India, and when it must register, as the tax authority states it.
- The tax
- GST (Goods and Services Tax)
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Streamlined Rate Structure: The tax structure has primarily moved to two slabs - 5% and 18%.
- Standard rate
- 18%
Since 22 September 2025 the structure has primarily two slabs, 5% and 18%, with a 40% rate on luxury and sin goods; the 12% and 28% slabs were discontinued.
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Streamlined Rate Structure: The tax structure has primarily moved to two slabs - 5% and 18%.
- Other rates
- 5% The merit rate on essential goods and specified services (for example leather, footwear up to ₹2,500 a pair, textiles, packaged food)
- 40% Luxury and sin goods: lottery and online gaming, tobacco, aerated drinks, high-end cars, yachts and private aircraft
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A 40% rate on luxury and sin goods has been introduced to help maintain revenue balance while ensuring a fairer tax structure . This includes lottery/ online gaming, tobacco, aerated drinks, high-end cars, yachts and private aircrafts.
- Registration threshold
- INR 4,000,000 · about €37,691
aggregate turnover: ₹40 lakh for a supplier of goods; ₹20 lakh for a supplier of services (₹10 lakh in special category states); financial year
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Higher Exemptions: Effective from April 2019, the GST registration limit for goods suppliers was increased from ₹20 lakh to ₹40 lakh
- Voluntary registration
- Yes
A person not liable to be registered under section 22 or 24 of the CGST Act may register voluntarily, and all provisions applying to a registered person then apply.
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Section 25(3) of the CGST Act, 2017 states that “a person, though not liable to be registered under section 22 or section 24 of the CGST Act, 2017 may get himself registered voluntarily
- A foreign company
- Registers from its first taxable supply
CGST Act s.24(v): non-resident taxable persons making taxable supply must be registered notwithstanding the s.22(1) turnover threshold, and under s.25(1) a non-resident taxable person applies at least five days before commencing business and (s.27) makes an advance deposit of the estimated tax. Whether a resident representative is required is not stated in the Act sections read (CBIC's 'Updated 30.09.2020' text); it is a matter of the CGST Rules.
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Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act
- Returns filed
- Depends on the business
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Simpler Return Filings: The quarterly return filing and monthly payment (QRMP) scheme has been introduced in 2020 to allow for quarterly filing of returns . It covers taxpayers with annual turnover of up to ₹5 crore.
- Tax authority
- Registration page read 2026-10-25
Tax calendar
When the main returns and payments fall due in India, tax year AY 2026-27 (FY 2025-26) for income tax; 2026-27 for GST/TDS, as the tax authority states it.
- Corporate tax return
- 31 October · each year
a company files its return of income (ITR-6) by 31 October of the assessment year (the standard audited case); where a report in Form 3CEB under section 92E is required the date is 30 November; non-audit business assessees file by 31 August and any other assessee by 31 July. The Limitation-periods table of the Income Tax Department states the company date as 31 October and the transfer-pricing date separately. The page read states no weekend shift, so the shift is unstated.
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139(1) (a) Filing of return by any company other than covered in (c) below October 31st of the assessment year
- Corporate tax, final payment
- 31 October · each year
the balance of tax for the year is payable as self-assessment tax under section 140A before the return of income is furnished, so for a company the payment falls due on the return due date, 31 October in the standard case (30 November where a Form 3CEB transfer-pricing report applies). The Limitation-periods table states the payment obligation as 'Before furnishing return of income'; the return due date is stated separately as 31 October in the same table. The page states no weekend shift, so the shift is unstated.
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140A(1) (i) Payment of income-tax on self-assessment Before furnishing return of income
- Corporate tax, instalments
- 15 June · each quarter
advance tax is paid in four instalments during the financial year: at least 15 per cent on or before 15 June, 45 per cent on or before 15 September, 75 per cent on or before 15 December and 100 per cent on or before 15 March. The record takes the first instalment date as the single rule; the other three dates are in the quote and here. An eligible assessee under section 44AD/44ADA pays 100 per cent by 15 March. Any advance tax paid on or before 31 March is treated as paid in the same financial year.
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211(1) Payment of advance tax in specified installments: (a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD): (i) At least 15 per cent On or before 15th June (ii) At least 45 per cent On or before 15th September (iii) At least 75 per cent On or before 15th December (iv) At least 100 per cent On or before 15th March
- Personal income-tax return
- 31 July · each year
an individual not required to be audited files the return of income by 31 July of the relevant assessment year; where the accounts are required to be audited the date is 31 October. The record takes the standard non-audit case. The page states no weekend shift, so the shift is unstated.
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Filing return of income by any non-corporate assessee other than covered in (c) below : (i) in the case where accounts are to be audited or where accounts of the firm in which assessee is a working partner are required to be audited or the spouse of such partner if the provisions of section 5A applies October 31st of relevant assessment year (ii) in other cases July 31 of relevant assessment year
- Personal income tax, final payment
- 31 July · each year
the balance of tax for the year is payable as self-assessment tax under section 140A before the return of income is furnished, so for an individual the payment falls due on the return due date, 31 July in the standard non-audit case (31 October where the accounts are audited). The Limitation-periods table states the payment obligation as 'Before furnishing return of income' and the individual return date separately. The page states no weekend shift, so the shift is unstated.
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140A(1) (i) Payment of income-tax on self-assessment Before furnishing return of income
- Personal income tax, instalments
- 15 June · each quarter
advance tax is paid in four instalments during the financial year: at least 15 per cent on or before 15 June, 45 per cent on or before 15 September, 75 per cent on or before 15 December and 100 per cent on or before 15 March. The record takes the first instalment date as the single rule; the other three dates are in the quote and here. A resident senior citizen with no business or professional income is not liable to advance tax; an eligible assessee under section 44AD/44ADA pays 100 per cent by 15 March.
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211(1) Payment of advance tax in specified installments: (a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD): (i) At least 15 per cent On or before 15th June (ii) At least 45 per cent On or before 15th September (iii) At least 75 per cent On or before 15th December (iv) At least 100 per cent On or before 15th March
- VAT return
- Day 20 of the following month · each month
a monthly filer lodges the GSTR-3B return by the 20th day of the month following the tax period; the GST portal's own guidance states the 20th for monthly filers and 22nd/24th of the month following the quarter for quarterly filers under the QRMP scheme (turnover up to Rs 5 crore), the day depending on the State. The record takes the standard monthly case. CGST Rule 61 states the same: 'on or before the twentieth day of the month succeeding such month'. The page states no weekend shift, so the shift is unstated.
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For monthly filers, due date for filing of Form GSTR-3B is 20th day of the month following the month (tax period) for which the return pertains
- Payroll withholding
- Day 7 of the following month · each month
TDS deducted must in general be deposited with the Central Government by the 7th of the month following the month of deduction; where the amount is credited or paid in March the date is 30 April, and for office-of-the-Government deductors paying without a challan it is the same day as deduction. The record takes the general monthly case. The page states no weekend shift, so the shift is unstated.
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Under the Income Tax Act, 1961, the TDS must, in general, be deposited to the credit of the Central Government within the 7th of the month following the month of deduction.
Running the company
Running a company here
Not in our records The authorities’ pages on running a company have not been read for India yet.
Economy and trade
What it exports
Goods India exported, by product, as a share of its goods exports each year. Exports include goods passing through for re-export. A share describes India’s own trade; it does not compare places.
| Product (HS heading) | 2022 | 2023 | 2024 | Value, 2024 |
|---|---|---|---|---|
| Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils HS 2710 | 18.4% | 18.4% | 12.8% | US$58.2 bn |
| Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528 HS 8517 | 2.5% | 4.2% | 5.7% | US$26.1 bn |
| Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packings for retail sale HS 3004 | 4.1% | 4.7% | 5.3% | US$24.1 bn |
| Diamonds, whether or not worked, but not mounted or set HS 7102 | 5.6% | 4.8% | 3.6% | US$16.5 bn |
| Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal HS 7113 | 2.6% | 2.8% | 2.8% | US$12.7 bn |
| Rice HS 1006 | 2.4% | 2.4% | 2.6% | US$11.9 bn |
| Parts and accessories of the motor vehicles of headings 8701 to 8705 HS 8708 | 1.5% | 1.6% | 1.8% | US$8.1 bn |
| Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars HS 8703 | 1.5% | 1.6% | 1.6% | US$7.4 bn |
| Other aircraft (for example, helicopters, aeroplanes), except unmanned aircraft of heading 8806; spacecraft (including satellites) and suborbital and spacecraft launch vehicles HS 8802 | under 0.05% | 0.13% | 1.3% | US$6 bn |
| Heterocyclic compounds with nitrogen hetero-atom(s) only HS 2933 | 1.1% | 1.1% | 1.2% | US$5.3 bn |
Total goods exports, 2024: US$454.8 bn. The ten largest headings are shown.