How can foreign companies expand into India without setting up a subsidiary?

Foreign companies can expand into India using an Employer of Record (EOR) model which handles payroll, compliance, and regulatory requirements.

What is the most efficient way to enter the Indian market?

Companies can enter India through a subsidiary, EOR model, or GCC setup depending on speed, cost, and long-term strategy.

What are key compliance requirements for foreign companies in India?

Key requirements include GST registration, corporate tax compliance, transfer pricing documentation, and adherence to FEMA and RBI regulations.

What is a Global Capability Center (GCC) in India?

A GCC is a captive offshore unit that supports global operations such as finance, IT, and analytics with cost efficiency and scalability.

How can profits be repatriated from India?

Profits can be repatriated via dividends, royalties, or intercompany transactions subject to tax and FEMA regulations.

India and its Crypto Policy

Regulatory and Corporate Compliance — Overview

Regulatory and Corporate Compliance
Sep 11, 2025

INDIA'S CRYPTO POLICY

By Nagavarapu Bhavya Akshaya

What is Crypto Policy?

Crypto policy means the rules, laws, and government stance on how cryptocurrencies (like Bitcoin, Ethereum, stablecoins, etc.) and related activities (trading, exchanges, payments, mining, taxation) are allowed, restricted, or supervised in a country. It usually covers: Legality, Regulation, Taxation, Anti–money laundering and “know your customer” rules, Financial stability and also Innovation vs. risk i.e, How much the government encourages blockchain innovation while preventing fraud, tax evasion, or systemic risks.

A Broad overview of India's Crypto Regulation

India as ever has been very cautious regarding its crypto policy. The government indicates it does not want to fully regulate crypto in a way that might give it “legitimacy” or make it deeply embedded in the mainstream financial system. Instead of full regulation, there is some oversight already

Crypto exchanges (especially global/offshore ones) must register with India’s Financial Intelligence Unit (FIU)

Anti-money laundering rules apply

gains from “virtual digital assets” are taxed (30%) and there’s a TDS (tax deducted at source)

Review of the Current Aspects
Further there is aldready an ongoing review by the Authorities by asking stakeholders for feedback. The CBDT has sent out questionnaires to exchanges and crypto service providers in regard to the current tax rates as well as the rules and regulations assosciated.

Concerns & risks listed
Some of the reasons cited for delaying full regulation or legislating crypto more strictly include:

Systemic risk concerns: Regulators, especially RBI, feel that if cryptocurrencies become “legitimized” or more deeply connected to banks/financial intermediaries, they could pose risks to the financial system

Stablecoins: India is particularly cautious about U.S.-dollar pegged stablecoins, worrying that wide adoption might fragment its own payment systems (e.g. UPI) or reduce control over the domestic payment architecture.
Regulation limitations: The documents suggest that even strict regulation can’t prevent peer-to-peer and decentralized exchange trades, which are harder to track. So regulation might only partially help.

India currently does not have a full fledged regulation providing a legal framework for the crypto currency dealings within its territory, nevertheless it has imposed strict rules and taxation regimes and is constantly working towards its Crypto Regulation. India is also further rising its enforcement through various coming age tools like AI tools, tax probes, and compliance checks are also expanding.

Consult with A2consultants to explore our indepth knowledge and insight on Crypto Currency

For detailed insights and practical guidance, visit our Knowledge Center and access our curated guides on India market entry: https://www.a2consultants.in/guides/international-taxation-in-india-for-foreign-companies

About the Author – Nagavarapu Bhavya Akshaya

Nagavarapu Bhavya Akshaya is a CA Final and CMA Final student and an All India Rank holder (AIR 31). With a strong academic foundation in accounting, taxation, and corporate laws, she brings a structured and analytical perspective to complex financial and regulatory topics. Her work focuses on simplifying technical subjects for professionals and businesses, with a special interest in international taxation, corporate structuring, and compliance advisory.

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