I am from Small (3 Tier City) Of India (Rajkot). We do not have any co-working space here. I am planning to start a Hacker Space soon.
Coffee shops do not have reliable wifi here. Plus I am a contractor so I need proper Wifi to work over VPN,
Tax wise its not that complex in India. You can hire any CA and pay him approx 200$ a year and it can be handled easily.