Doing Business in India VS Puerto Rico – A Comparison
Entrepreneurs and investors often face a dilemma when choosing between India and Puerto Rico as their preferred business destination. Both countries offer unique advantages, making the decision challenging. While India is renowned for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Puerto Rico stands out for its strategic location and tax incentives. This article explores the key differences to help you make an informed decision.
Key Comparison Points
Business Environment
- India: India boasts political stability with a robust legal framework, supported by initiatives like Make in India to attract foreign investments.
- Puerto Rico: Puerto Rico benefits from being a U.S. territory, offering a stable political environment and a legal system aligned with U.S. federal laws.
Taxation
- India: India offers a corporate tax rate of 22% (15% for new manufacturing companies), along with various tax incentives for startups and SMEs.
- Puerto Rico: Puerto Rico provides highly attractive tax rates, including a corporate tax rate as low as 4% under certain programs, making it a tax haven for businesses.
Ease of Company Incorporation
- India: India has streamlined its incorporation process through digital platforms, reducing bureaucratic hurdles and improving regulatory transparency.
- Puerto Rico: Puerto Rico offers a straightforward incorporation process, leveraging its close ties to the U.S. legal and regulatory framework.
Cost of Living and Business Operations
- India: India offers low operational costs, affordable office spaces, and a cost-effective labor market, making it ideal for small to medium businesses.
- Puerto Rico: While operational costs are higher than India, Puerto Rico still offers competitive living and business expenses compared to mainland U.S.
Access to Markets
- India: India serves as a gateway to South Asia, with strong global connectivity and trade agreements that facilitate access to international markets.
- Puerto Rico: Puerto Rico’s strategic location in the Caribbean provides easy access to North and South American markets, along with duty-free trade with the U.S.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
Puerto Rico |
Business Environment |
Stable political and legal framework with initiatives like Make in India. |
U.S.-aligned legal system with stable governance. |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
4% (under special programs) |
Capital Gains Tax |
Varies depending on the type of asset and holding period. |
Zero capital gains tax in certain cases under Act 22. |
Ease of Incorporation |
Streamlined digital platforms for company registration. |
Simple incorporation process with U.S. regulatory alignment. |
Business Costs |
Low operational and living expenses. |
Moderate costs compared to mainland U.S. |
Market Access |
Gateway to South Asia with strong trade agreements. |
Strategic Caribbean location with U.S. market access. |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Puerto Rico, 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 competitive landscape, low operational costs, and government initiatives like Make in India. Learn more by visiting the starting a business in India guide.
As the leading corporate services provider, 3E Accounting offers comprehensive solutions for business setup in India.
From incorporation to our services, 3E Accounting supports businesses at every step.
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.