CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Does a us-registered llc pay corporate taxes in india?



(Guest)

Hi Everyone,

I have a complicated question about corporate taxation. What I already know is that if a company incorporated abroad/outside India has its complete management living/based in india then it has to pay corporate taxes to India.

But if 1 person living in India registers/manages an LLC(Limited Liability Company) in the USA, does that also mean that it has to pay corporate taxes to India? 

A few points to note:

  1. An LLC is not a corporation according to the American Corporate Law(or in Indian legal terms NOT an incorporated-company)
  2. The process of forming an LLC is called "Formation" or "Registration" NOT "Incorporation"
  3. An LLC is not an incorporated body according to the American Corporate Law(its just a registered form of business which has limited liability)
  4. An LLC doesn't have a board of directors and issues NO share(s). It also has NO share capital.
  5. According to the American Law, an LLC is treated as a sole proprietorship(if owned by 1 person) or a partnership(if owned by more than 1 person) for taxation purposes. Only incorporated bodies (such as Corporations) pay Corporate Taxes.

 

So does the above type of business qualify as a company in India, in order to pay corporate taxes?

Also plz. don't confuse the term "Company" in LLC as every type of business(SP, Partnership, LLP,LP, LLC) is called a company in the USA.

avater

Aman Kapoor   07 April 2020

Aman Kapoor

 4 points

View Profile | My Other Post

Did you find any answer? I am also looking forward to know about and open to hiring a professional as well. Please reach out to me.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Popular Discussion


view more »



Trending Tags
llp
tds
tin nsdl
icai
gstr 3b
ca students
aatmanirbhar bharat
ca exams may 2020
Service Tax
csr
gst return
accounts
custom
newgstreturn
itr
law
corporate law
sebi
career
shares stock
coronavirus
dvat
gst portal
exams
epf