Does a US 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 outside India has its complete management based in India then it has to pay corporate taxes to India.
But if a 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.
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.
Asked 8 months ago in Corporate Tax
