India

India has 1.45 billion people - the world's most populous country - with a rapidly growing middle class estimated at over 400 million consumers. That's a domestic market larger than the entire EU.

The median age is around 28 - one of the youngest workforces globally. Over 65% of the population is below 35, which means a deep talent pool in engineering, IT, finance, and manufacturing.

India has one of the largest English-speaking populations worldwide, which removes a major barrier for international companies hiring locally or setting up customer-facing operations.

Operational costs run significantly lower than in Western economies. Developer salaries range from US$8,000-$20,000/year vs. US$100,000+ in the US. Office space costs 60-80% less than major Western cities.

The economy sits at US$3.91 trillion (5th largest globally) and grew 6.5% in 2024 - one of the fastest growth rates among major economies. The trajectory has been consistent for over a decade.

100% FDI is permitted in most sectors through the automatic route, which means no government approval is needed. You invest, then report to RBI through your bank. Straightforward.

India has signed over 90 double taxation avoidance agreements, covering every major trading partner. This network helps companies structure cross-border operations tax-efficiently.

Digital infrastructure has leapfrogged many developed countries. UPI processes over 12 billion transactions per month. Aadhaar covers 1.3 billion people. SPICe+ lets you incorporate a company entirely online.

Recent reforms include GST (replacing 17 indirect taxes with one), the Insolvency and Bankruptcy Code, and simplified labor codes. Each one removed real friction for businesses.

India is the world's largest IT services exporter and the 3rd largest startup ecosystem by unicorn count. The tech talent and supplier network that comes with this is hard to replicate elsewhere.

The 25.17% effective corporate tax rate under Section 115BAA is competitive globally. New manufacturing companies pay just 17.16% under Section 115BAB - lower than Singapore, the UK, and most of Europe.

Government incentive programs are substantial: Production Linked Incentive schemes worth ~US$23.5 billion across 14 sectors, Startup India tax holidays, SEZ benefits, and GIFT City IFSC with 0% tax for 10 years.

Regulation in India comes from multiple overlapping authorities - MCA, RBI, SEBI, state governments, DGFT, and various labour departments. Each has its own compliance calendar, filing portal, and penalty framework.

Every Private Limited Company must have at least one Indian-resident director. For foreign-only founding teams, this means hiring a local director or using a nominee service.

Despite real improvements, bureaucratic delays remain common - especially for land acquisition, environmental clearances, certain RBI approvals, and utility connections outside major cities.

Under the old tax regime, effective corporate tax rates reach 34.94% for domestic companies and 43.68% for foreign companies (branch offices) after surcharges and health & education cess are applied.

GST compliance is complex: monthly or quarterly returns (GSTR-1, GSTR-3B), annual returns (GSTR-9), different rates across goods and services (0%, 5%, 12%, 18%, 28%), and frequent rate revisions.

India's tax authorities aggressively scrutinize related-party transactions through transfer pricing rules. Extensive documentation is required, and penalties for non-compliance run at 2% of the transaction value.

Repatriating profits requires Form 15CA (online declaration) and Form 15CB (CA certification) for remittances exceeding INR 5 lakh (~US$5,952). This adds both time and professional fees.

Outside tier-1 cities like Mumbai, Delhi, Bangalore, and Hyderabad, infrastructure can be inconsistent - including power supply, road quality, and internet connectivity.

Labour laws, professional tax, registration requirements, and business incentives differ significantly from state to state. What works in Karnataka may not apply in Maharashtra.

Court backlogs remain a real issue. Commercial disputes can drag on for years through the Indian court system. Arbitration under the 1996 Act is improving but still slower than in Singapore or the UK.