Reasons to Form a US Company in India

The biggest perk of setting up a shop in Delaware from India is being able to raise financing from angel investors and VCs.

In the United States, venture capital investments in new businesses have averaged $130 billion a year over the past three years. Traditional venture capital firms, angel investors, and startup syndicates (like crowdfunding) all contribute to this total.

However, by 2025, India is expected to have a capital market of $30 billion annually.

The expansion of India’s financial sector is something to be celebrated. The simple fact is that registering in India provides you access to more business than merely registering in the US.

The Founder’s Guide to Forming an Indian Corporation in the United States

To incorporate company in USA from India, you must do the following six measures:

1. Select the legal structure that best fits your company’s needs. C corporations are preferred by investors, hence most Indian enterprises are C corporations.
2. Make a judgment on where to incorporate your business. The bulk of American tech companies have their headquarters in Delaware. And so are the vast majority of the Fortune 1000.
3. Start the incorporation process by filing. Articles of incorporation can be filed on Capbase in under 10 minutes. Capbase’s annual flat price covers filing fees.
4. Register with the IRS for an EIN (employer identification number). Getting a US bank account requires an EIN. Paying taxes is another consequence of registering your firm with the IRS. (Capbase handles obtaining your EIN.)
5. Activate a bank account in the United States. In order to conduct business in the United States, you will need to obtain an EIN number.
6. Maintain your business’s legitimacy by filling out reports on time. Annual reports must be filed in the state of Delaware. The 1st of March is the deadline for filing. Capbase has built-in features to help you stay in line with regulatory filing obligations.

How to obtain a registered agent in the United States?

You don’t need to reside inside the US to start a company there, but you do need a registered agent. A registered agent accepts correspondence on your behalf. They have a physical address in the state in which you register, allowing them to receive official correspondence.

That consists of:

• Warnings of imminent reporting or other compliance obligations
• Financial records from the state’s revenue or tax division
• Legal papers (notices of lawsuits) are served on your business.

The address of your registered agent may not be used as the official address of your corporation. The address you use in India must be your permanent home.

Capbase acts as the registered agent for businesses that choose to incorporate in the State of Delaware through our platform.

Visas and taxes in the United States for Indian entrepreneurs

Having a company registered in the United States will not affect your tax residency status. Your company will file taxes in the United States as a separate legal entity. Your personal income taxes will still be paid in India, as long as you remain a citizen there.

There is no need to obtain a work visa to conduct business in the United States. However, you will need one if you intend to establish a business in the United States. Indian nationals can apply for a variety of work visas, including the E-1, E-2, EB-5, L-1, and O-1. Our comprehensive article on obtaining a US immigration visa as a startup’s founder has all the information you need.