Opening a company in India: locals, foreigners, freelancers and digital nomads

At a glance: Private limited company (Pvt Ltd) with no minimum capital and one resident director, incorporated online through SPICe+ in 7 to 15 working days for under INR 40,000 all in, corporate tax 25 or 22 percent plus surcharge and cess, GST from INR 20 lakh (services) or 40 lakh (goods), no digital nomad visa. Legal forms. Sole proprietorship: no registration beyond PAN, GST if needed and a state shop and establishment licence. Private limited company (Companies Act 2013): 2 to 200 members, 2 directors, no minimum paid-up capital (INR 1 lakh is customary), statutory audit from year one. One Person Company (OPC): single member plus a nominee. Registration. Ministry of Corporate Affairs through the SPICe+ form on the MCA portal: Part A reserves the name (INR 1,000), Part B incorporates with the e-MoA, e-AoA and the AGILE-PRO-S annex. No MCA fee for authorised capital up to INR 15 lakh; state stamp duty INR 500 to 10,000. Professional fees INR 7,000 to 25,000 for a domestic company, INR 75,000 to 200,000 (about 750 to 2,000 euros) for a foreign subsidiary. Total excluding capital about INR 10,000 to 40,000 (100 to 400 euros) for locals. Taxes 2026. Corporate income tax 25 percent for domestic companies with turnover up to INR 400 crore and 30 percent above, or an optional 22 percent flat rate without incentives; with surcharge and 4 percent cess about 26 to 29 percent and 25.17 percent. Foreign companies pay 35 percent plus surcharge and cess. Dividends are taxed in the shareholder's hands: 10 percent TDS for residents above INR 10,000 a year, 20 percent plus surcharge and cess for non-residents, 10 or 15 by treaty. GST slabs 5 and 18 percent (40 on sin and luxury goods); registration mandatory above INR 20 lakh turnover for services and INR 40 lakh for goods (about 20,000 and 40,000 euros). Personal income tax under the default new regime: nil up to INR 12 lakh after rebate, top rate 30 percent above INR 24 lakh (about 24,000 euros), up to 39 percent with surcharge and cess. Freelancers and the self-employed. A freelancer needs only a PAN, works as a proprietor and registers for GST above INR 20 lakh or voluntarily. Presumptive taxation: professionals with gross receipts up to INR 50 lakh declare 50 percent as profit with no books; traders up to INR 2 crore declare 8 percent (6 on digital receipts). No social security is compulsory for the self-employed (EPF and ESIC cover employees), so the minimum monthly cost is nil apart from state professional tax of up to INR 2,500 a year. Foreigners. 100 percent foreign direct investment under the automatic route in most sectors; government approval for multi-brand retail, print media and defence above 74 percent; prohibited in lottery, gambling, real estate trading and tobacco. One director must have stayed in India 182 days in the previous financial year, so founders appoint a resident nominee director. No investor residence route: a business visa to set up, then an employment visa (minimum salary USD 25,000 a year) to work in your own company. Incorporation is remote with apostilled documents, but banks run full KYC and take two to six weeks. Branch of a foreign company. A branch office needs Reserve Bank approval through an authorised dealer bank (parent with five profitable years and net worth of at least USD 100,000), then registration with the Registrar of Companies within 30 days with an authorised representative resident in India; a liaison office may not earn income. Branches are taxed as foreign companies at 35 percent plus surcharge and cess, about 36 to 38 percent, with no withholding on profit remittances. A private limited subsidiary at 25 or 22 percent is the usual choice. Digital nomads. No digital nomad visa, and remote work for a foreign employer is not an authorised activity on a tourist visa. The closest routes are the e-Tourist visa (30 days, one year or five years, stays capped at 90 or 180 days depending on nationality), and the employment visa through an Indian entity. Presence of 182 days in a financial year makes you resident and, once ordinarily resident, taxable on worldwide income. Changed recently. Foreign company and branch rate cut from 40 to 35 percent (July 2024); new regime slabs with no tax up to INR 12 lakh (April 2025); GST rationalised to 5, 18 and 40 percent (22 September 2025); Income Tax Act 2025 replacing the 1961 Act (1 April 2026). Figures checked October 2026 from the Ministry of Corporate Affairs, the Income Tax Department, the Central Board of Indirect Taxes and Customs and PwC and Indian chartered accountancy pages; thresholds and fees change yearly. Confirm with a licensed adviser in India before you file.