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Differences in Doing Business in India and China

March 9, 2010

As global investments shift east and both China and India offer unique, compelling markets to operate in, its vital for a company to understand the legal and tax differences in doing business in China and India.

In order to simplify and provide investors with an overview of the distinct characteristics the two markets offer, Inchin Closer has compiled a chart  (below) of the basic types of companies one can set up, tax incentives offered and the varied legal requirements while establishing an office in China and/or India.

In order to understand the differences further or to enquire about doing business in China or India,   contact our legal team.  


Four categories of projects: Encouraged, permitted, restricted, prohibited No such concept. There are permitted projects and a small category of prohibited projects
Tax incentives to foreign enterprises depending on the sector and geographical region (“Go West” policy) National treatment (equal treatment) to all enterprises whether Indian or foreign

Types of corporate presence: Branch/Representative Office; Sino-Foreign Equity Joint ventures; Sino-Foreign Cooperative Joint Ventures, Wholly-Owned Foreign Enterprises (WOFE); Chinese Holding Companies; B Shares and Special Approved Foreign Joint Venture  

Representative Office, Liaison Office, Branch Office, Project Office, Company (Private or Public)
One Director of company possible Minimum Two Directors
Possible to have Limited Liability Partnerships (LLPs) for legal and accounting services No such concept in India


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