Register a Company in USA from India

Can an Indian resident own a US company?

Yes. A US LLC or corporation can have an owner who lives in India, and you do not need to go to the United States to form it. The US side is straightforward. 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.

Speak to a chartered accountant first

Sending money from India to fund a foreign company falls under the overseas investment rules, and the limits and conditions have changed over time. Ask a chartered accountant what applies to you and in what form, before you transfer anything. A formation service cannot advise on this. If the company is paid by clients and you take money out later, the same advice applies in the other direction.

What you will usually 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.

Choosing the type and the state

Most Indian founders who sell services or run an online business choose an LLC. A founder who plans to raise money from investors may need a Delaware C-corporation instead. Delaware, Wyoming and New Mexico are common choices for non-residents. The best one depends on your costs, your customers and your plans, not on which is most popular.

Taxes in both countries

• In the US: a foreign-owned single-member LLC usually has an annual information filing even if it owes no tax. See US LLC tax filing.
• In India: a resident individual generally has to disclose foreign assets and interests in the Indian return, and the income may be taxable in India. How the LLC is treated there is a question for your accountant.

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. See EIN and US business bank account.

Where to start

Pick the state and name, then begin with LLC formation for non-residents. Our blog also has guides for founders in India, including the documents required to register an LLC from India.