CCI Online Learning
What do you want to learn today?

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

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


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.


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
tin nsdl
gstr 3b
ca students
aatmanirbhar bharat
ca exams may 2020
Service Tax
gst return
corporate law
shares stock
gst portal