Global Registration

How to Start a Company in USA from India?

Company in USA from India

A company can be started in the USA either in the form of a ‘Corporation’ or ‘Incorporated Entity’ or an ‘LLC’ which is known as Limited Liability Company. ‘LLC’ is a Pass-through Entity from the point of view for Taxation Purposes; however, Corporations are taxed as different or separate entities. Henceforth, you need to look for a State in the US in which you need to operate as either of them:

  • A subsidiary of Indian Company.
  • Branch or Representative Office of an Indian Company.
  • Marketing or Front End office of an Indian Company.

Henceforth, as a corporation, it will be a US tax asset more or less the same as any other US resident taxpayer.

Establishing your company in USA from India

For Company Registration in USA from India you must be aware of the following types of company structure:

Corporation-

In case you are establishing a company to obtain funding from venture capitalists, angel investors etc. then opting for C-Corporation can be the solution. A C-Corporation[1] is considered a more professional option by investors, bankers, suppliers and employees as independent legal entities.

LLC

An LLC has the features of a partnership firm and corporations and it provides limited liability protection against a law suit. LLC has been the preferred entity of choice by many business owners, due to it being a less formal entity to maintain, and also because of its flexible taxation.

Eligibility to start a company in USA from India

Fulfil these eligibility requirements in order to start a company in USA from India:

  • Directors must have attained majority;
  • They must possess a valid passport and address proof;
  • You will need a registered US citizen to act as an agent. Such an agent may be an individual or a firm who has a registered address in the province of incorporation;
  • The registered agent should be operational during office hours.
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Important steps to follow before starting a company in USA from India

  • Application for name availability for the entity.
  • The physical presence of the Registered Agent or representative to collect and sign the legal documents from the US State. (A US (CPA) can act as a Registered Agent).
  • Fulfilment of details relating to Companies & the concerned persons
  • Generation of ‘Federal Employer Identification Number’ from the US Internal Revenue Service.
  • The opening of Bank Account in the US State; however if you want to open a Bank Account in the Home Country or in India then an ‘Apostle’ or ‘Certificate of Authentication’ is needed.
  • Formation of a US-based Office or a ‘Virtual Office’.

Documents Required

  • Passport of all directors;
  • Address Proof and ID proof documents – Aadhaar Card;
  • PAN Card
  • Specimen Signatures of all the desired officeholders.

How to register your company in USA?

In order to start a company in USA you need to undertake the following process:

  • Select the name of the company which should be unique;
  • Decide upon the type of business structure that you want to establish whether Corporation or LLC;
  • Specify about the registered agent having a physical address in the state where you want to start the company. The registered agent should be available during the business hours to sign the legal documents;
  • You can obtain a federal employer identification number which is optional. It will be required when you have to open a bank account;
  • Further you will have to submit details of the proposed shareholders and directors.

Post Incorporation Requirements

Once your company has been registered in USA, you need to do certain post incorporation tasks such as:

  • Get a physical address;
  • Open bank account in the US;
  • Open bank account in India;
  • Get a US phone number;
  • Get a website and logo;
  • You need to open a merchant account.
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Conclusion

The United States of America invites entrepreneurs from different nations without regard to whether they are US citizens or not to establish their business. The laws governing business establishment, taxation, and other risk and compliance are similar for everyone in the USA. Hence you can easily set up your company in USA from India and establish your business globally.

Read our Article:Company Registration in Australia: A Procedure & Guidelines

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