NRI starting business in India

Save Share

This query is : Resolved

Quick Summary

This discussion provides guidance for Non-Resident Indians (NRIs) in London looking to establish a business in India that exports services to German clients. Key considerations include setting up an Indian Private Limited Company, understanding the 0% GST on service exports with proper documentation, and navigating the 25.17% corporate tax in India. It also covers the process for remitting profits to the UK, including withholding tax and utilising Foreign Tax Credits under the India-UK Double Taxation Avoidance Agreement.

Suraj

Suraj (Querist)

07 September 2026 Dear Sir,

I want to understand which areas to be looked into where an NRI staying in London wants to start business in India, exporting services to German client. How the taxation, repartition of funds will play a role in this? Also please guide me additional areas to be looked into.

Thank you,
Suraj

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

07 September 2026 For an NRI in London setting up a service export business in India serving German clients, the ideal framework is establishing an Indian Private Limited Company with at least one local resident director and filing Form FC-GPR with the RBI. Service exports to Germany enjoy 0% GST under a Letter of Undertaking (LUT) provided foreign currency inward receipts are documented with bank e-BRCs. Profits earned incur an effective 25.17% corporate tax in India and can be remitted freely to the UK as dividends after applicable withholding tax, which can then be offset against UK HMRC tax liabilities using Foreign Tax Credit provisions under the India-UK DTAA.

Message likes : 1 times

Suraj

Suraj (Querist)

08 September 2026 Thank you Aashok Kumar Sir !!!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now