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🇬🇧 United Kingdom vs 🇮🇳 India

A side-by-side look at setting up a company in United Kingdom (Private Limited Company) and India (Private Limited Company), plus 5 regulatory differences to plan for if you operate in both.

CriterionUnited KingdomIndia
Typical vehiclePrivate Limited CompanyPrivate Limited Company
Foreign ownership100%100% under automatic route (most sectors)
Minimum capitalGBP 1No statutory minimum
Time to incorporate1–3 days15–30 days
Corporate tax25% (19% small profits)22% (15% new manufacturing)
VAT / GST20%18% GST
Dividend withholding0%20% (treaty relief)
Resident directorNot requiredRequired
Physical officeVirtual acceptedRequired
Annual running costUSD 1,500–5,000USD 2,500–8,000
AuditThreshold-basedMandatory
Legal systemCommon lawCommon law
Currency controlsNoneFEMA restrictions apply

Operating in both: key conflicts

high

Data transfer: Incompatible cross-border data transfer regimes

One jurisdiction requires localisation or regulator approval while the other permits free flows. A single shared database or CRM will breach the stricter regime unless you localise storage or execute approved transfer mechanisms.

high

Sanctions & export control: Extraterritorial sanctions reach differs

The higher-exposure jurisdiction applies its sanctions and export-control rules extraterritorially to group entities, personnel and USD/GBP clearing. Screen counterparties against the stricter list group-wide.

medium

Beneficial ownership: Disclosure expectations differ

One register is publicly searchable. Ownership held confidentially in the other jurisdiction becomes effectively public through the group structure.

medium

Treasury: Capital movement restrictions on one side

Repatriation of dividends, loans and intercompany balances is regulated in one jurisdiction. Cash pooling across the group will require prior approval or will be blocked.

low

Governance: Resident director requirements differ

One jurisdiction requires a resident director. Appointing the same individual in both can undermine the substance position of the other entity.

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Figures are indicative and change often. Not legal or tax advice — confirm with qualified counsel.