Doing Business in India VS Pakistan – A Comparison
Entrepreneurs and investors often face the dilemma of choosing the right destination for their business expansion. India and Pakistan, two of South Asia’s largest economies, offer unique opportunities for businesses. While India is known for its competitive business landscape, lower setup costs for small businesses, and high quality of life, Pakistan provides its own strategic advantages. This article explores key factors to help investors make an informed decision.
Key Comparison Points
Business Environment
- India: India offers a stable political environment, a well-established legal framework, and strong government initiatives such as Make in India to encourage business investments.
- Pakistan: Pakistan provides business-friendly policies, with a growing focus on industrialization, though political instability can pose challenges for long-term investors.
Taxation
- India: The corporate tax rate in India is 22% for existing companies and 15% for new manufacturing companies, with various tax incentives available for startups and SMEs.
- Pakistan: Pakistan imposes a corporate tax rate of 29%, along with tax exemptions for specific industries, including export-oriented businesses.
Ease of Company Incorporation
- India: India has streamlined its company registration process with digital infrastructure, allowing businesses to be incorporated within a few days through an online portal.
- Pakistan: Pakistan has simplified its company incorporation process but still faces bureaucratic hurdles, requiring more paperwork and longer processing times.
Cost of Living and Business Operations
- India: India offers affordable office space, competitive labor costs, and a cost-effective living environment, making it attractive for small and medium businesses.
- Pakistan: Pakistan has relatively lower labor costs, but operational expenses can vary depending on the city and infrastructure availability.
Access to Markets
- India: India enjoys strong global trade relations, extensive trade agreements, and easy access to international markets, making it a strategic hub for business.
- Pakistan: Pakistan offers trade potential with China through the China-Pakistan Economic Corridor (CPEC) but has limited global trade agreements compared to India.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor |
India |
Pakistan |
Business Environment |
Stable, investor-friendly, strong government support |
Business-friendly policies but political uncertainty |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
29% |
Capital Gains Tax |
Varies based on holding period and asset type |
Subject to capital gains tax based on investment type |
Ease of Incorporation |
Fast and digital-friendly registration process |
Slower process with bureaucratic challenges |
Business Costs |
Lower office rent, affordable workforce |
Lower labor costs but variable operational expenses |
Market Access |
Strong global trade agreements, easy international access |
Trade potential with China, limited global agreements |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Pakistan, 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, strong government initiatives like starting a business in India, and affordable operational costs, making it an attractive destination for entrepreneurs.
The process is streamlined with digital infrastructure. For a detailed step-by-step guide, visit our India company registration page.
India has a corporate tax rate of 22% (15% for new manufacturing companies), while Pakistan has a higher rate of 29%. For tailored advice, explore our services.
India provides affordable office space, competitive labor costs, and a cost-effective living environment. For more information on business setup in India, visit our page.
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.