The Indian capitalist market sees itself expanding in the US market to get credibility, angel investors, and tax benefits. Creating outlet in the US will enable a business to acquire international market credibility, attract investors, and become eligible for tax benefits. World has become a global village now, technology has made the US business from India very easy.
Is Indian registering company in USA possible?
The answer is Yes. You can have a business in the United States which is owned by a non citizen of the U.S. In this digital age, just a US mailing address or residence isn’t a precondition to set up an Indian company.
How Can an Indian Start a Business in the USA?
If you want to know how to register company in USA from India, you can do it through 3 paths:
- Do it yourself: If you know US company incorporation laws, you can incorporate yourself. Be very careful during setup as errors can get you in trouble.
- Get Help from Expert: You can hire an expert to guide you and register your business. He/she will provide legal advice tailored to your needs.
- Online Incorporation in USA From India through USAIndiaCFO: This is a new option in incorporating your business. USAIndiaCFO partnered with USA Incorporation Platform to provide USA Incorporation Services to Indian Clients at low cost.
Types of company should you make in US:
First of all, choose the eligible terms for your business. Pick what type business will fit your interests. Nowadays there are two types of entities which you can choose to form in U.S.: mostly a corporation and a limited liability company.
- LLC (Limited Liability Corporation)
- C-Corporation
India-Based LLC (Limited Liability Corporation) Registration in the USA
The Limited Liability Corporation provides tax benefits, protection, and reduction of liability from personal assets. It can decide to be taxed as individual or corporation under a form of pass – through entities.
The advantages of individual taxation in taxation include avoidance of double taxation. Corporations are subject to double taxation as the income is first taxed at the business level and then for the individual taxpayers,
The cap on members’ liability is fixed. This is the most fundamental explanation of Venture Capital (VC)s’ disinterest in LLCs. VCs set their priorities on preferred stock that provides a fixed income and ownership and such stock is only available with C-corps.
Register C-Corporation in USA from India
A C-Corp is applied, that is, restricted corp., which is a basic US corporate structure with limited liability. Entity (Firm) can issue stocks and has high growth prospectus. No restriction on a max share of shareholders.
The compliance process of C-Corps is more meticulous than LLCs’ process. A strong company culture will be maintained through ethics and values. It will also follow the rules. C-Corp incurs double taxation, as its accounting procedure is set by the company itself. Income of a corporation is first taxed and then the dividends paid to individuals are taxed.
If you anticipate raising funds in the future, you may want to select a C-corporation because it might be the preferred VC type for that purpose. C-corporations are made-up of unlimited shareholders. This enables the corporation to enlarge the number of shareholders when there is a need for extra finances.
The company form decision is based on the distant vision of the entity. According to the advice from the top CFO in India, if future business expansion and capital rising are key considerations, opt for C-Corporation.