Doing Business in India VS Indonesia – A Comparison
Entrepreneurs and investors often face a tough decision when choosing between India and Indonesia as their preferred business destination. Both countries offer unique opportunities and challenges, making the choice a strategic one. India is known for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses. On the other hand, Indonesia boasts a rapidly growing economy and a strong presence in Southeast Asia.
Key Comparison Points
Business Environment
- India: India offers a stable political environment with a robust legal framework and increasing government support for foreign investments.
- Indonesia: Indonesia has a relatively stable political climate and is focused on improving its ease of doing business through regulatory reforms.
Taxation
- India: Corporate tax rates in India are 22% (15% for new manufacturing companies), with various tax incentives available for startups and specific sectors.
- Indonesia: Indonesia has a flat corporate tax rate of 22%, with additional incentives for investments in certain industries and regions.
Ease of Company Incorporation
- India: India has streamlined its incorporation process with digital infrastructure and simplified regulatory requirements, making it easier for businesses to set up.
- Indonesia: Indonesia is improving its incorporation process but still faces challenges with bureaucratic hurdles and regulatory complexities.
Cost of Living and Business Operations
- India: India offers lower operational costs, affordable office spaces, and a relatively low cost of living, making it an attractive destination for smaller businesses.
- Indonesia: Indonesia also provides competitive operational costs, though urban areas like Jakarta may have higher living expenses compared to India.
Access to Markets
- India: India has strong global connectivity and benefits from multiple trade agreements, making it a key player in the global market.
- Indonesia: Indonesia’s location in Southeast Asia provides excellent connectivity within the region and access to ASEAN trade agreements.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
Indonesia |
Business Environment |
Stable political environment, robust legal framework |
Relatively stable, ongoing regulatory reforms |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
22% |
Capital Gains Tax |
Applicable with varying rates |
Applicable with varying rates |
Ease of Incorporation |
Streamlined with digital infrastructure |
Improving but still bureaucratic |
Business Costs |
Lower operational and living costs |
Competitive but higher in urban areas |
Market Access |
Strong global connectivity, multiple trade agreements |
Excellent regional connectivity, ASEAN agreements |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Indonesia, partnering with a reliable corporate service provider like 3E Accounting can make all the difference. With expertise in starting a business in India, a step-by-step guide to India company registration, and India company incorporation, 3E Accounting ensures a seamless setup process tailored to your needs. For company setup or any other assistance, feel free to contact us. Choose 3E Accounting for a hassle-free experience and focus on growing your business with confidence.
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Frequently Asked Questions
India offers a stable political environment, lower operational costs, a robust legal framework, and easier digital incorporation processes. For a full breakdown, refer to our starting a business in India guide.
India has streamlined its incorporation with digital infrastructure, making the process more efficient than Indonesia. Learn more about the full procedure in our India company registration guide.
Both India and Indonesia impose a 22% corporate tax, but India offers a reduced 15% rate for new manufacturing companies along with various incentives for startups.
India generally offers lower operational and living costs, making it more attractive for startups and small businesses. For expert assistance on business setup in India, 3E Accounting is here to help.
India has strong global connectivity and multiple trade agreements, giving businesses access to a wide international market. Indonesia, however, offers excellent regional access through ASEAN.
While Indonesia is improving its regulatory environment, businesses still face bureaucratic delays and complex incorporation processes compared to India.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.