NRI starting business in India
This query is : Resolved
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
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
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.
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