Register a Company in the USA from India, Step by Step

Register a company in the USA from India

An Indian resident can own a US company. You do not need to go to the United States, hold a US visa or have a Social Security Number to form a US LLC or corporation. The filing, the registered agent, the EIN and the yearly paperwork can all be handled online from India. This page explains how it works for a founder in India, what you need, what it costs to keep the company, and the India-side points to settle before you start. When you are ready, you can register your LLC as a non-resident with us.

Key takeaways

• An Indian resident can own 100% of a US LLC or corporation.
• Every step can be done from India, with no trip to the US.
• A registered agent with a street address in the state is required.
• A foreign-owned US LLC generally has a yearly IRS filing, even with no income.
• Sending money from India and reporting the company in India are separate questions. Ask a chartered accountant before you move money.

Can an Indian resident own a US company?

Yes. A US LLC or corporation can have an owner who lives in India. No US state requires the owner of an LLC to be a citizen or a resident. The US side is simple. The part that needs care is the India side: the Reserve Bank of India's rules on money sent abroad, and how the company is reported in your Indian tax return. See LLC registration in the USA for non-residents for the general rules for foreign owners.

Speak to a chartered accountant first

Sending money from India to fund a foreign company falls under India's foreign exchange rules, and the limits and conditions have changed over time. For an individual, remittances abroad are commonly made under the Liberalised Remittance Scheme, which has a yearly limit per person, but how a shareholding in a foreign company is treated is a separate question. Ask a chartered accountant what applies to you, in what form, and what you must report, before you transfer anything. A formation service cannot advise on this. You can read the Reserve Bank of India's current rules on rbi.org.in.

LLC or corporation: which one for an Indian founder?

Most Indian founders who sell services, consult, build software for clients or run an online business choose an LLC. It is simple, has few formalities and, for a single owner, is normally treated as a pass-through for US tax. A founder who plans to raise money from US investors usually needs a Delaware C-corporation, because investors prefer it. An S-corporation is generally not open to a non-resident owner. If you are unsure, read LLC vs C-Corp before you decide.

Which state should you form in?

Any state is open to you, and you will need a registered agent in it. The usual choices for a founder in India are:

• Delaware. Well known to investors and banks, with a long legal record. It is the usual choice if you may raise money.
• Wyoming. A low-cost state with a simple yearly cost.
• New Mexico. Known for low costs and for not requiring an annual report for an LLC.
• Florida and Texas. Chosen when you have customers or a link to those states.

Compare the formation fee and the yearly cost of every state on our LLC filing fees by state page, and see which states have no state income tax. The best state depends on your costs, your customers and your plans, not on which is most popular.

What you will need

• A valid passport.
• Proof of address, such as a bank statement or a utility bill.
• The company name you want, with a few alternatives in case the first is taken.
• The state you want to form in.
• A short description of what the company will do.

How to register a company in the USA from India: step by step

1. Choose the type and the state. LLC or corporation, and the state, using the points above.
2. Check the name. It must be available in the state and include "LLC" or an accepted variant.
3. Appoint a registered agent. The agent needs a street address in the state, where legal papers can be delivered. An owner in India cannot normally act as their own. See our registered agent service.
4. File the formation document. It is called the Articles of Organization in most states. It is filed online with the state fee.
5. Get the EIN. The EIN is the company's US tax number. A foreign owner without a Social Security Number applies to the IRS with Form SS-4 by fax, mail or phone instead of the online form. We can do this with our EIN service.
6. Write the operating agreement. Many states do not require it, but banks and partners often ask for it.
7. Open a bank or payment account. See the section below.
8. Put the yearly filings in your calendar. The state's annual report and the IRS filing described next.

How long does it take?

State approval can take from a day to a few weeks, depending on the state and whether you pay for faster handling. The EIN usually takes longer for a founder without a Social Security Number, because it is not the instant online route. The bank account is often the slowest step, so start it as soon as you have the EIN. Treat these as a guide, not a promise.

Taxes in both countries

• In the US: a foreign-owned single-member LLC generally files Form 5472 with a pro forma Form 1120 every year, even if it owes no tax. The penalty for missing it is heavy. A foreign-owned LLC with no US-source business income generally owes no US income tax. Our US LLC tax filing service prepares the filing.
• In India: a resident individual generally has to disclose foreign assets and interests in the Indian tax return, and the income may be taxable in India. How the LLC is treated there is a question for your chartered accountant. Official guidance is on incometax.gov.in.

Banking and getting paid

You need the EIN first, then a US bank or dollar account. Many founders also set up a payment platform to collect from customers. A matching legal name across the LLC, the EIN letter and the account avoids most application problems. We have a tie-up with Payoneer and point founders to their business account application, but approval is decided by the provider. See EIN and US business bank account.

What it costs to keep a US company

Forming is a one-time cost. Keeping the company costs something every year: the state's annual fee or report, a registered agent renewal, and the yearly IRS filing for a foreign-owned LLC. Add any bank or platform fees. The amounts depend on the state, so compare them before you choose. Our annual report filing service keeps the state filing on time.

Mistakes Indian founders make

• Choosing the state only on the formation fee, without the yearly cost.
• Using a PO box or a home address as the registered agent address.
• Applying for the EIN before the state approves the LLC.
• Skipping the yearly IRS filing because the LLC earned nothing.
• Sending money from India without asking an accountant how to do it.
• Names and addresses that differ between the LLC, the EIN letter and the bank application.

Where to start

Pick the state and name, then start with LLC formation for non-residents, or read our company formation in the USA page for the wider picture. Our blog also has guides for founders in India, including the documents required to register an LLC from India and what an LLC costs from India. This is general information, not legal, tax or financial advice.