Thinking of starting a company in the USA from India?
It’s an exciting venture, these are the essential steps you need to follow.
Can an Indian Register a Company in USA?
Yes! Indian individuals and entities can start a company in the USA without any citizenship restrictions. No need for a US mailing address or being a US resident or visa holder. Just be mindful of legal and tax considerations during the registration process. It’s an excellent opportunity for Indian entrepreneurs to expand their business internationally!
How To Register A Company In USA From India
If you are considering how to open a company in the USA from India, you have three options
1. DIY Incorporation
If you are familiar with US company incorporation laws, you can attempt to incorporate the company yourself. However, it’s crucial to exercise extreme caution as any errors in the filing process could lead to legal issues
2. Expert Assistance
Another option is to seek help from a professional expert who can guide you through the entire registration process and provide valuable legal advice tailored to your business needs.
3. Online Incorporation with D4Commerce
A novel approach to business incorporation is utilizing D4Commerce, India’s best business incorporation Service Provider Company. They have a partnership with a USA attorney and offer USA Incorporation Services to Indian Clients at a budget-friendly cost. To avail their services, simply fill out the provided form.
Remember, regardless of the chosen path, careful consideration and adherence to legal requirements are essential for successful company incorporation in the USA from India.
You might also be interested in reading your blog on How To Send Money From Us To India For Free
Which Entity is best for Indians
There are 2 types of entities that an individual could choose from
- Limited Liability Company (LLC)
- C-Corporation (C-Corp)
Each structure has its advantages and tax implications, so consult with a legal expert or business advisor to choose the most suitable one for your needs.
| Attribute | Limited Liability Company (LLC) | C-Corporation (C-Corp) |
|---|---|---|
| Liability Protection | Owners’ personal assets are protected from business debts and liabilities. | Owners’ personal assets are protected from business debts and liabilities. |
| Taxation | Pass-through taxation: Profits and losses pass through to individual owners’ tax returns. No corporate income tax. | Double taxation: Corporation pays taxes on its profits, and shareholders pay taxes on dividends received. |
| Ownership Structure | Owners are called “Members.” Can have single-member or multi-member ownership. | Owned by shareholders, can have an unlimited number of shareholders. |
| Management | Can be managed by members or have a designated manager. | Managed by a board of directors and officers. |
| Formalities & Compliance | Less formalities and paperwork compared to corporations. | More formalities: Regular meetings, minutes, and resolutions are required. |
| Flexibility in Profits | Flexible allocation of profits among members. | No flexibility: Profits are distributed to shareholders based on the number of shares they own. |
| Foreign Ownership | Foreign ownership is allowed. | No restrictions on foreign ownership. |
| Employee Benefits | Same tax-deductible benefits as a corporation. | Can offer various tax-deductible benefits to employees and shareholders. |
| Investor Attraction | Might be less attractive to investors due to the structure. | Attractive to investors due to stock options and potential growth. |
| Conversion | Can convert to a corporation if needed. | Can convert to an LLC or other entity if needed. |
Our Recommendation
For many small and medium-sized businesses, the Limited Liability Company (LLC) is often the most recommended option.
It provides a balanced combination of liability protection, flexibility in management, and pass-through taxation, making it easier to manage and tax-efficient. Additionally, LLCs allow foreign ownership, making it a suitable choice for Indians looking to start a company in the USA.
However, the final decision should be based on a thorough understanding of your specific business needs, long-term objectives, and consultation with legal and financial professionals who can provide personalized advice based on your situation.
Each business structure has its advantages and limitations, so it’s crucial to weigh these factors carefully before making a choice.
Who Needs C-corp?
- High-Growth and Venture-Backed Startups: Ideal for startups seeking venture capital funding and potential rapid growth.
- Large Scale and Publicly Traded Companies: Suited for sizable businesses planning to go public in the future.
- Foreign Ownership: Attractive for businesses with international investors or shareholders.
- Employee Stock Option Plans (ESOPs): Allows implementation of employee stock ownership programs.
- Access to Corporate Tax Benefits: Offers tax deductions and employee benefit plans.
- Legal Liability Protection: Provides limited liability protection for shareholders.
- Long-Term Business Planning: Suitable for businesses with long-term growth and expansion goals.
Documents Required to Register a Company in USA From India
- Unique Company Name: Choose a distinctive name for your company that complies with the naming rules of the state in which you’re registering.
- Passport of all directors: Provide a valid passport copy for each director of the company.
- Address Proof & ID Proof Documents: Submit address proof and identification documents for all directors, which could include a driver’s license, Aadhar card, or other government-issued identification.
- Signed Documents for Incorporation: Prepare and sign the necessary documents for the incorporation of your company, which may include Articles of Organization/Incorporation and Operating Agreement for LLCs, or Articles of Incorporation and Bylaws for Corporations.
- IRS Form SS4 – Application for Employer Identification Number (EIN): Complete and submit Form SS4 to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is essential for tax purposes and opening a business bank account.
- Certificate of Incorporation/Organization: Obtain the Certificate of Incorporation for Corporations or Certificate of Organization for LLCs as proof of your company’s legal existence.
How to incorporate a company in US From India
You need to follow theSE steps to get your company registered in the US
- Research and Plan: Conduct thorough market research to understand the business landscape in the USA. Create a detailed business plan outlining your company’s goals, target audience, and strategies.
- Choose the Business Structure: Decide on the most suitable business structure for your company, such as a Limited Liability Company (LLC), Corporation, or Partnership, based on your needs and preferences.
- Register with the State: Choose the state in the USA where you want to register your company. Each state may have different regulations and requirements. Register your company with the appropriate state authorities.
- Appoint a Registered Agent: Nominate a registered agent in the chosen state who will receive legal documents and official communication on behalf of your company.
- Obtain an Employer Identification Number (EIN): Apply for an EIN from the Internal Revenue Service (IRS). This unique number is essential for tax purposes and opening a business bank account.
- Open a US Bank Account: Set up a business bank account in the USA to manage finances and transactions related to your company.
- Comply with Tax Regulations: Familiarize yourself with US tax laws and ensure compliance with federal, state, and local tax requirements. Consider consulting a tax professional to navigate the complexities.
- Understand Legal Obligations: Learn about the legal obligations and regulations relevant to your industry, such as licenses, permits, and other necessary documentation.
- Virtual Presence and Office: Establish a virtual presence or rent a small office space in the USA to enhance credibility and facilitate communication with clients and partners.
- Maintain Proper Records: Keep accurate records of financial transactions, contracts, and other important documents for transparency and audit purposes.
- Stay Updated on Business Laws: Stay informed about changes in business laws and regulations in the USA to ensure ongoing compliance and success.
D4commerce VS Competitors
| Feature | Delta4Commerce | Jumpstart | Firstbase |
| Price | Single member LLC $497 (1 Time fee) | $399 (base fee) | $499 (base fee) |
| Multi-member LLC $547 (1 Time fee) | |||
| Services Included | EIN registration in 7 to 14 days, government registration fees, registered agent service, Email support, 1 video call interaction, post-incorporation documents | Company formation, EIN, ITIN, US bank account, Stripe account, website, tax filing, legal services, accounting, bookkeeping | Company formation, EIN, ITIN, US bank account, stripe account, website, tax filing, legal services, accounting, bookkeeping |
| EIN Registration | 100% guaranteed in 7 to 14 days | Not specified | Not specified |
| Dedicated Customer relationship manager | ✅ | ❌ | ❌ |
| Additional Features | Fast track EIN process included | Some features are add-ons. Which increases the base price and makes it expensive more expensive than D4Commerce | Some features are add-ons. This increases the base price thus making it the most expensive option. |
| Customer Reviews | Positive feedback for quick and reliable service | Mixed reviews, no dedicated relationship manager. | More expensive compared to competitors, no dedicated relationship manager. |
Also, check out our blog on Cost to Register a Company In USA From India
I would encourage you to check out this video, to take an informed decision.
On The End Note
While registering a company in the USA from India may present challenges, following the steps diligently can help you overcome them.
Stay focused, seek expert guidance, and tackle each hurdle with determination.
Let your entrepreneurial spirit guide you toward success in the land of possibilities. Dream big, work hard, and make your mark on the global stage.
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