When Satoshi Nakamoto first introduced cryptocurrencies to the world in 2009, it became an exciting prospect for investors across the globe. Within a few months, not just for investors but also for entrepreneurs, it emerged as an exciting concept. They have been looking for ways to explore the cryptocurrency world, estimate profits, and establish cryptocurrency companies.
Go through this post if you’re an entrepreneur with the same excitement for the crypto world.
List Of Opening A Cryptocurrency Company In India
Here is the list to know about Opening a crypto company in India. Let’s check.
- The Indian Government’s View on Cryptocurrency
- The Latest Crypto Regulations in India
- Ease of Opening a Cryptocurrency Company in India
- Procedure to Open a Crypto Company in India
- Taxation of Cryptocurrencies in India
The Indian Government’s View on Cryptocurrency
The Views of Government in the Past
In the early days of cryptocurrency hype, the Indian government’s stance on it has been the subject of significant debate and evolution. Initially, the views were a bit skeptical. However, gradually, the views changed a little, especially when the government noticed the potential benefits of this revolution.
The Current View of Government
The Indian government is actively interacting with the cryptocurrency sector and researching potential legal frameworks for its management. Till date, Though, cryptocurrency is yet to be accepted as legal tender in the Indian economy.
The Latest Crypto Regulations in India
In 2019, India’s first draft law, the Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, banned all cryptocurrency-related transactions.
It would have limited the activities of cryptocurrency companies in India to just mining.
A new draft bill, however, was introduced in 2021, providing a legal framework for the creation of an official virtual token issued by the Reserve Bank of India.
Ease of Opening a Cryptocurrency Company in India
Establishing a cryptocurrency business in India presents both possibilities and difficulties. The main obstacle to starting a cryptocurrency business in India is the constantly changing regulatory environment. That’s why navigating through the uncertainties poses challenges. However, the potential for growth and innovation in this sector makes it an attractive prospect for entrepreneurs.
Procedure to Open a Crypto Company in India
To start your crypto business in India, check out the applicable conditions and detailed steps mentioned below:
Special Condition: Follow the Companies Act 2013
Companies Law 2013 is the act that majorly regulates crypto companies in India. Whether any local or foreign entrepreneur is willing to open a crypto company in India, complying with this act is compulsory.
Steps to Open a Crypto Company
Step 1: Complete Formalities
There are various formalities that you must complete, like:
- Get a Permanent Account Number (PAN);
- Obtain a Tax Deduction and Collection Account Number (TAN);
- Apply for a Goods and Services Identification Account Number (GSTIN).
Step 2: Set Up Exchanges
After acquiring the license, you may set up virtual money exchanges. That will ask you to report details about the profits and losses, the funds in cryptocurrencies, and the deposits made by clients.
Step 3: Draft Know-Your-Client Policies
The next step is for the crypto exchanges to draft Know-Your-Client policies and note the details of traders and customers engaging on their platform.
Taxation of Cryptocurrencies in India
The latest updates regarding the taxation of cryptocurrency are as follows:
- 30% tax is levied on profits from cryptocurrency transactions, as per the most recent data dated April 2022.
- Additionally, these businesses might have to pay 28% GST (Goods and Services Tax).
- A 1% TDS will be applicable to any transaction completed by such businesses.
In The End
The Opening a crypto company in India is similar to opening a company under the Companies Act 2013. However, the only challenge is the dynamic environment of the crypto world. The government regulations and growth potential always make it a little tough to enter this space. But overall, it is a revolutionary concept that is a must-explore as it has the potential to give unimaginable results.
