Can I start a prop firm in India?
Quick answer
Founders in India do run prop firms, usually serving international traders, but the setup needs care. Indian residents dealing in forex on unauthorised overseas platforms risk action under FEMA, and the RBI publishes an Alert List of such platforms. Structure, target markets and payments should be planned with an Indian lawyer and chartered accountant.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
Key points for an India-based founder:
- Customers: selling forex evaluations to Indian residents is the most sensitive area, because of how FEMA and the RBI treat retail forex on overseas platforms.
- Structure: some founders use an Indian company for technology and services and a separate overseas entity for the evaluation business. Each choice has tax and compliance consequences.
- Payments: receiving foreign payments into India is export-of-services income with its own banking and GST considerations.
- Tax: business income is taxable in India for resident companies and individuals.
The technology side is the simple part: a platform can be bought online and paid once. Plan the legal and payment structure first. This is general information, not legal advice; confirm your position with Indian professionals.
Questions to settle first
- Will you serve Indian residents at all?
- Which entity sells the evaluations?
- How will foreign payments reach your bank?
PropExecutor team · Updated
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