The India-UK Comprehensive Economic and Trade Agreement (CETA) has been in force since 15 July 2026, together with a Double Contributions Convention on social security. It improves the position of UK services firms and of staff sent to India, and it makes trade rules more predictable. It does not change how an Indian subsidiary is formed, funded or taxed: the Companies Act, FEMA and FDI Policy, and the India-UK tax treaty still decide those.
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Key facts
| Agreement | Comprehensive Economic and Trade Agreement between India and the United Kingdom, signed 24 July 2025 |
|---|---|
| In force | 15 July 2026, the same day as the India-UK Double Contributions Convention (signed 10 February 2026) |
| Main benefit for UK service firms | Binding market-access and fair-treatment commitments across a wide range of services, and defined routes for business visitors, intra-corporate transferees, contractual service suppliers and independent professionals |
| Staff mobility reported | Business visitors up to 90 days; intra-corporate transferees up to three years with limited renewal |
| Investment protection | None in this agreement. India and the UK are negotiating a separate bilateral investment treaty |
| Tax | CETA does not alter income tax. The 1993 India-UK double taxation convention continues to apply |
| Does it change FDI rules? | No. Sector caps, the Automatic Route and RBI reporting under FEMA continue as before |
What CETA is, and how it differs from a tax treaty
A trade agreement and a tax treaty do different jobs. CETA is about market access: tariffs on goods, rules for trading services, temporary movement of people, digital trade and dispute settlement between the two governments. The tax treaty divides taxing rights over income. A UK company moving into India will touch both, but only the tax treaty decides how much Indian tax is withheld on a dividend or a service fee.
CETA's headline gains run in India's favour on goods: duty-free entry to the UK for almost all Indian exports by value. For a UK company entering India the useful parts are on the services and mobility side, which is why this guide concentrates there.
Services: where a UK company gains certainty
The agreement locks in market access and fair treatment for services suppliers, with schedules of commitments that list what each side opens and the limits it keeps. A UK professional-services, software, financial or engineering firm should read India's schedule for its own sector before assuming anything: commitments are sector-specific and many carry conditions.
- Professional services: the two governments agreed to identify priority professions within 12 months and to conclude mutual recognition arrangements within 36 months, so qualification recognition is a work in progress rather than a done deal.
- Digital trade: electronic contracts, signatures and invoices are recognised, personal data is protected, and forced transfer of source code is prohibited, subject to limited exceptions.
- Predictable rules: new technical regulations are to be shared in advance, normally with a gap of at least six months before they take effect, and administrative decisions can be reviewed or appealed.
Moving people: visitors, transferees and the Double Contributions Convention
CETA's chapter on temporary movement gives UK firms defined categories for sending people to India. As reported, business visitors can stay up to 90 days, and an intra-corporate transferee (a manager, executive or specialist moved within the same group) can be posted for up to three years with limited renewal. Contractual service suppliers and independent professionals have their own conditions. The official schedule should be checked for the numbers that apply to your role.
The Double Contributions Convention matters just as much. It stops a worker on a temporary assignment paying social security in both countries. The Indian government has said the detachment period is up to five years. See UK employees in India: the tax treaty and the social security convention for how the exemption is claimed.
What CETA does not change
- Company law and FDI: a UK company still forms an Indian private limited company under the Companies Act, 2013, and still follows the FDI Policy for its sector. See the incorporation guide.
- FEMA reporting: Form FC-GPR, the pricing floor and the 60-day allotment rule are unaffected. See funding and FEMA.
- Tax: Indian subsidiary profits, Withholding Tax, transfer pricing and permanent establishment risk follow Indian law and the 1993 treaty. See the India-UK tax treaty guide.
- Investor protection: there is no investment chapter giving a UK investor treaty claims against India. Contract drafting and arbitration still do that work. See contracts, courts and arbitration.
How a UK company can use CETA in practice
- Decide whether the Indian operation will deliver services to India (the subsidiary sells locally) or deliver to the UK (a captive team); CETA's service schedules matter more for the first.
- Check India's schedule and the UK's mobility schedule for the exact categories your staff fit, and use them to plan secondments instead of defaulting to a short business visa.
- Put each posting under the right route: business visit for meetings, intra-corporate transfer for group staff, employment visa where the person joins the Indian payroll.
- Ask your payroll provider to obtain a certificate of coverage before the first day of the assignment, so the Double Contributions Convention applies from the start.
- Keep the tax file in step: day counts for the treaty's permanent establishment and 183-day tests are unaffected by CETA.
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, HMRC, Companies House and the UK legalisation service for apostilles.
Frequently asked questions
Does the CETA reduce Indian tax on dividends paid to a UK parent?
No. CETA is a trade agreement. Withholding Tax on dividends, interest, royalties and fees is governed by the Income-tax Act, 2025 and the 1993 India-UK tax treaty, which caps dividends at 10%.
Does the India-UK CETA let a UK company skip Indian incorporation?
No. A UK company that wants to hold property, employ people or contract locally in India still needs an Indian entity (or an approved branch or liaison office) and has to follow FEMA and the FDI Policy.
How long can a UK employee be posted to India under CETA?
As reported, an intra-corporate transferee can be posted for up to three years with limited renewal, and business visitors can stay up to 90 days. Confirm the exact conditions in the official schedule for your sector and role.
Does the CETA protect UK investments in India?
Not directly. The agreement has no investment-protection chapter. India and the UK are negotiating a separate bilateral investment treaty, so investors should rely on contract terms and arbitration for now.
When did the India-UK trade agreement come into force?
On 15 July 2026, the same day as the Double Contributions Convention on social security.
Related guides
The India-UK Tax Treaty (DTAA), Article by Article: India as Source State, the UK as Residence State
The India-UK double taxation convention explained article by article from the UK parent's point of view: rates table, permanent establishment, royalties and fees, gains, employees, relief and how to claim.
Read the guide →UK Employees Working in India: Treaty Relief, Indian Residence and the Double Contributions Convention
How the India-UK tax treaty (Articles 15 and 16), Indian tax residence, provident fund and the 2026 India-UK Double Contributions Convention apply to UK employees working in India.
Read the guide →Contracts, Courts and Arbitration in India for UK Companies: Enforcing English Judgments and Awards
How a UK company should draft contracts with its Indian subsidiary and customers, choose governing law and seat, and enforce English court judgments and arbitral awards in India.
Read the guide →Sending a UK Employee to India: Visa Choice, FRRO Registration, Housing and the Practical Checklist
How to move a UK employee to India: employment visa or short-stay visa, CETA intra-corporate transfers, FRRO registration, housing, banking, family and the day-count controls.
Read the guide →Sources
Last updated 19 October 2026. General information only, not legal or tax advice. Indian and UK rules change often; confirm current requirements before acting.