Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right route - onshore FIU-IND registration or an offshore serving base - and leads it to a compliant launch, including banking and payment rails.
Get a crypto license in India.
India has no dedicated crypto licence - and we say so plainly. Crypto is legal to trade, exchanges register with FIU-IND for AML, and the tax is heavy: a flat 30% on gains plus 1% TDS. It is a huge market on punishing terms. We structure the real, compliant route.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
India in brief
No licence - registration, and a heavy tax.
India does not have a dedicated crypto or VASP licence, and no one can sell you one. Crypto - which Indian law calls Virtual Digital Assets, or VDAs - is legal to hold and trade, but it sits under two things rather than a licensing regime. The first is anti-money-laundering: since March 2023, crypto-asset service providers must register with the Financial Intelligence Unit - FIU-IND - as reporting entities under the Prevention of Money Laundering Act, with full KYC, monitoring and reporting duties. FIU-IND has enforced this against offshore exchanges that served Indian users without registering, so it is a real gate, not a formality.
The second is tax, and it is the defining feature. Income from transferring VDAs is taxed at a flat 30% with no loss offsets and no deductions beyond acquisition cost, and a 1% tax is deducted at source on transfers above a threshold. That regime, in place since 2022, is deliberately heavy - it does not stop a market that remains one of the largest in the world by users, but it shapes every structuring decision. There is no single crypto regulator or dedicated authorisation; the honest route is FIU-IND registration, disciplined compliance, and a tax structure built with eyes open. Many founders serve India from an offshore base for exactly that reason. We map the compliant path either way.
No dedicated crypto licence in India - honestly. Crypto is legal to trade; exchanges register with FIU-IND as reporting entities under the PMLA, with full AML duties.
The tax defines everything: 30% flat on gains, no loss offset, 1% TDS. A huge market on punishing terms - many founders serve it from offshore, which we build cleanly.
The honest picture
FIU-IND registration - and the tax reality.
Two things to get right: the FIU-IND registration and AML programme that a crypto business actually runs on, and a tax structure that survives the 30%-plus-TDS regime. We scope both before any work begins.
FIU-IND registration is the regulatory gate; the tax structure is the constraint. We scope both up front.
01 - FIU-IND REGISTRATION · THE ROUTE
Reporting entity under the PMLA
The working structure: an Indian entity registered with FIU-IND as a reporting entity, with a full AML/CFT programme - KYC, monitoring and reporting - to PMLA standards. Not a licence, because none exists, but the real regulatory gate.
The working structure: an Indian entity registered with FIU-IND as a reporting entity, with a full AML/CFT programme - KYC, monitoring and reporting - to PMLA standards. Not a licence, because none exists, but the real regulatory gate.
- ✓FIU-IND registration as a reporting entity
- ✓AML/CFT programme under the PMLA
- ✓KYC, monitoring and suspicious-transaction reporting
- ✓Principal officer and designated director
- ✓Records and audit to FIU-IND standards
- ✓Enforced against unregistered offshore firms
02 - THE TAX STRUCTURE
30% + 1% TDSBuilding around a heavy regime
The VDA tax defines the model: 30% flat on gains, no loss offsets, 1% TDS on transfers. We structure the business - and, for many, an offshore serving base - so the tax outcome is deliberate rather than accidental.
30% flat, no offsets, 1% TDS - we structure the business, often an offshore serving base, so the tax is deliberate.
- ✓30% flat tax on VDA transfer income
- ✓No loss offset, no deductions beyond cost
- ✓1% TDS on transfers above the threshold
- ✓Corporate tax around 25% on other income
- ✓Offshore serving base where it fits
- ✓Repatriation and treaty position modelled
Costs and timelines are confirmed for your case before any work begins. There is no dedicated crypto licence in India - the FIU-IND registration is the regulatory gate, and the VDA tax is the structural constraint. We are candid about both.
Why India
A vast market - approached with clear eyes.
No dedicated licence and a heavy tax - but one of the world's largest user bases and deepest talent pools, if the structure is built honestly.
✓
One of the largest markets
India has one of the biggest crypto user bases on earth. The demand is real and vast - which is why serving it lawfully, through FIU-IND registration and clean compliance, is worth doing properly.A vast user base - worth serving lawfully.
✓
A defined AML gate
FIU-IND registration under the PMLA gives a clear, enforceable compliance standard. Meeting it makes a business bankable and credible - the substance is the product, since there is no licence badge.FIU-IND registration - clear and enforceable.
✓
Deep engineering talent
India's software and engineering talent pool is among the world's largest and most cost-effective. Building the technical and compliance team a crypto business needs is genuinely easy here.Among the world's largest, cost-effective.
✓
Legal to hold and trade
Despite the heavy tax, VDAs are legal to own and transfer. The 2020 Supreme Court decision struck down the earlier banking ban, and the market has operated within the tax and AML rules since.Banking ban struck down in 2020.
✓
A clear-eyed offshore option
For many models, the honest answer is an offshore serving base paired with Indian compliance. We are frank about when that beats onshore - and structure it cleanly rather than pretend the tax away.Honest about when offshore beats onshore.
✓
Direction of travel
India co-shaped the G20 crypto policy discussion and continues to weigh a fuller framework. We track the drafts, so a structure built now can adapt as the regime develops.A fuller framework weighed - we track it.
How it compares
How India differs from other routes.
India is a huge market with no dedicated licence and a punishing tax - the honest comparison is below.
India vs other jurisdictions
| Feature |  India | Other jurisdictions |
|---|---|---|
| Regime | FIU-IND registration, no dedicated licence | Dedicated VASP licences |
| Crypto tax | 30% flat + 1% TDS | Usually far lighter |
| Loss offset | None allowed | Usually allowed |
| Market size | Among the world's largest | Varies |
Regime
IndiaFIU-IND registration, no dedicated licence
Other jurisdictionsDedicated VASP licences
Crypto tax
India30% flat + 1% TDS
Other jurisdictionsUsually far lighter
Loss offset
IndiaNone allowed
Other jurisdictionsUsually allowed
Market size
IndiaAmong the world's largest
Other jurisdictionsVaries
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| India | FIU-IND registration (no dedicated licence) | 30% VDA + 1% TDS | PMLA AML reporting entity |
 UAE (Dubai) | VARA VASP by activity | 9% CIT · 0% personal | Substance-heavy licence |
 Singapore | DPT licence under the PSA (MAS) | 17% corporate | Demanding, custody-heavy |
 Indonesia | PFAK/CPFAK (OJK, from Bappebti) | 22% corporate | Registration, local substance |
IndiaLicense typeFIU-IND registration (no dedicated licence)
Taxation30% VDA + 1% TDS
RequirementsPMLA AML reporting entity
UAE (Dubai)License typeVARA VASP by activity
Taxation9% CIT · 0% personal
RequirementsSubstance-heavy licence
SingaporeLicense typeDPT licence under the PSA (MAS)
Taxation17% corporate
RequirementsDemanding, custody-heavy
IndonesiaLicense typePFAK/CPFAK (OJK, from Bappebti)
Taxation22% corporate
RequirementsRegistration, local substance
Doing it properly
What the compliant structure contains.What the compliant structure contains.
No licence does not mean no obligations - FIU-IND registration and the tax regime are both real. The checklist below is what we build.
01
Indian entity - a company incorporated to hold the business and its FIU-IND registration.
02
FIU-IND registration - as a reporting entity under the PMLA, for the crypto services offered.
03
AML/CFT programme - KYC, EDD, transaction monitoring and suspicious-transaction reporting to PMLA standards.
04
Principal officer and designated director - appointed and registered as the PMLA requires.
05
VDA tax compliance - the 30% flat tax and 1% TDS mechanics built into systems and books from day one.
06
TDS deduction and remittance - the 1% deducted-at-source machinery operating correctly on transfers.
07
Records and audit - kept to FIU-IND and tax-office standards, so both read the business as compliant.
08
Governance - ownership disclosed to UBOs, with fit-and-proper management.
09
Offshore-onshore design - where a foreign serving base fits the model, structured cleanly and disclosed.
10
Banking file - accounts arranged on full disclosure, matched to the flows.
11
Consumer and conduct standards - clear disclosures to users, since trust is the market's currency.
01
Indian company for the business and registration.
02
FIU-IND registration as a reporting entity.
03
AML/CFT programme under the PMLA.
04
Principal officer and designated director.
05
VDA 30% tax and 1% TDS wired into books.
06
TDS deduction and remittance machinery.
07
Records and audit to FIU-IND standards.
08
Ownership disclosed to UBOs.
09
Offshore-onshore design where it fits.
10
Banking file on full disclosure.
11
Clear consumer disclosures.
Reflects the PMLA/FIU-IND regime and the VDA tax rules as of 2026. There is no dedicated crypto licence - in writing, not in small print. FIU-IND registration is enforced against unregistered providers.PMLA/FIU-IND + VDA tax rules, as of 2026. No dedicated licence; registration enforced.
How it works
From first call to a compliant structure.
01
Strategy and honesty
The real status, whether onshore or an offshore serving base fits, and the tax model - fixed in writing before anything incorporates.Onshore or offshore, tax model - in writing.
02
Company and structure
Indian incorporation, or the offshore-onshore design where it fits - built for compliance and the tax machinery.Indian entity or offshore-onshore design.
03
FIU-IND registration
Registration as a reporting entity, the AML/CFT programme and the required officers - assembled to PMLA standards.Reporting entity + AML - to PMLA standards.
04
Tax and systems
The 30% tax and 1% TDS mechanics wired into books and platform, so the heavy regime is handled automatically.30% and 1% TDS wired into books and platform.
05
Banking and launch
Accounts arranged on disclosure; the business live, compliant and bankable within India's rules.Accounts on disclosure; compliant and live.
Quick facts
Dedicated licenceNone
RouteFIU-IND registration
BasisPMLA reporting entity
VDA tax30% flat, no offsets
TDS1% on transfers
Corporate tax~25% on other income
EnforcementAgainst unregistered firms
FrameworkFuller regime weighed
The VDA tax is deliberately heavy and allows no loss offset - it is the single biggest structuring constraint, and we build around it honestly rather than wish it away.
On the ground in India
Run from our Dubai office, with Indian counsel.
Prifinance - India desk
Mumbai · India
Mumbai, India
01
Indian incorporation
Company formation and the corporate layer FIU-IND registration sits on - built for the AML programme and the tax machinery.The corporate layer for registration and tax.
02
FIU-IND registration
Registration as a reporting entity, with the AML/CFT programme, principal officer and designated director - drafted, filed and maintained.Reporting entity, AML, officers - maintained.
03
VDA tax and TDS
The 30% tax and 1% TDS mechanics built into systems and books from the start - so compliance is automatic, not a year-end scramble.30% and 1% wired in from the start.
04
Offshore serving structure
Where an offshore base fits the model, a clean, disclosed structure paired with Indian compliance - and the tax and repatriation modelled.Clean, disclosed, where it fits the model.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of crypto companies in India.
The VDA tax defines everything: a flat 30% on transfer gains with no loss offset, plus a 1% TDS on transfers. It is one of the heaviest crypto regimes anywhere, and the whole structure is built with that in view.
30% flat on VDA gains
Income from transferring virtual digital assets is taxed at a flat 30% - no slab benefit, no deductions beyond acquisition cost. It applies whether the gain is small or large, and it is the defining constraint.No slab benefit, no deductions beyond cost.
No loss offset
Losses on VDAs cannot be set off against other income, or even against gains on other VDAs. This asymmetry punishes active trading and shapes how a serious operator structures its book.Not against other income or other VDAs.
1% TDS on transfers
A 1% tax is deducted at source on VDA transfers above a threshold. It creates a real cash-flow and systems obligation, which we wire into the platform rather than bolt on at year end.A real cash-flow and systems obligation.
~25% corporate tax on other income
Ordinary company income is taxed at India's corporate rates - broadly around 25% for domestic companies under the concessional regime. The VDA 30% sits on top of that for crypto-specific gains.Ordinary corporate rates apply.
GST considerations
GST can apply to crypto service fees and is an area of ongoing clarification. We map the GST position to your specific activity so it is planned, not discovered on assessment.On service fees - mapped, not assumed.
Why many go offshore
The 30%-plus-TDS regime pushes many founders to serve India from an offshore base while keeping Indian compliance. We are candid about when that is the rational structure, and build it cleanly.The heavy regime makes it rational - built cleanly.
Tax summary
VDA transfer tax30% flat
Loss offsetNone
TDS on transfers1%
Corporate tax (other income)~25%
GSTOn service fees (evolving)
CurrencyINR
*As of 2026. The VDA regime is heavy and allows no loss offset - we model onshore and offshore honestly so the choice is deliberate.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Indian company, FIU-IND registration, AML/KYC policy pack and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a clean, compliant business.
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India · FIU-IND
Launch your crypto project in India with expert support.
Full-service assistance - FIU-IND registration, AML/CFT, VDA tax mechanics and, where it fits, an offshore serving structure.
Get a consultation →Free legal opinion
Is India the right base for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: onshore FIU-IND registration, an offshore serving base, or another route entirely.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The India crypto route, answered honestly.
Is there a crypto licence in India?+
No - there is no dedicated crypto or VASP licence. Crypto is legal to trade, but the regulatory route is FIU-IND registration as a reporting entity under the PMLA, with full AML/CFT duties. Anyone selling an «Indian crypto licence» is describing something that does not exist.
What is FIU-IND registration?+
Since March 2023, crypto-asset service providers must register with the Financial Intelligence Unit as reporting entities under the Prevention of Money Laundering Act - with KYC, monitoring and reporting. It has been enforced against offshore exchanges that skipped it.
How is crypto taxed?+
Heavily. Income from transferring VDAs is taxed at a flat 30% with no loss offset and no deductions beyond acquisition cost, plus a 1% TDS on transfers above a threshold. This 2022 regime is the single biggest structuring factor.
Can I offset crypto losses?+
No. Losses on VDAs cannot be set against other income, or even against other VDA gains. The asymmetry is deliberate and punishing for active trading - a key reason structuring matters so much here.
Is crypto actually legal?+
Yes, to hold and trade. The 2020 Supreme Court decision struck down the earlier banking ban, and the market has operated within the tax and AML rules since. There is simply no dedicated licensing regime layered on top.
Should I base onshore or offshore?+
It depends on the model. The 30%-plus-TDS regime pushes many founders to serve India from an offshore base while keeping Indian compliance. We are candid about when that is the rational structure, and build it cleanly and disclosed.
How are companies taxed on non-crypto income?+
At India's ordinary corporate rates - broadly around 25% for domestic companies under the concessional regime. The 30% VDA tax sits on top for crypto-specific gains, and GST can apply to service fees.
Is a fuller framework coming?+
India helped shape the G20 crypto policy discussion and continues to weigh a broader framework. Nothing dedicated is enacted as a licence, but we track the drafts so a structure built now can adapt.
Is there a crypto licence?+
No - FIU-IND registration under the PMLA is the route.
What is FIU-IND registration?+
Reporting-entity AML registration - enforced on offshore firms.
How is crypto taxed?+
30% flat, no offsets, plus 1% TDS - very heavy.
Can I offset losses?+
No - not against other income or other VDAs.
Is crypto legal?+
Yes to hold and trade - banking ban struck down 2020.
Onshore or offshore?+
Depends on the model - we're candid about it.
Other income tax?+
~25% corporate; GST on some service fees.
A fuller framework?+
Weighed, not enacted - we track the drafts.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
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Google
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Google
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: onshore FIU-IND registration, an offshore serving base, or another route.Free legal opinion: onshore FIU-IND, an offshore base, or another route entirely.
✓Written legal opinion within 2-5 business days - free of charge✓A clear, honest read on the right route - not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of FIU-IND, the RBI or any other public authority. Registrations are granted by, and obtained directly from, the competent authorities.