How to Register a US Company from India

There is no requirement for a US mailing address when forming a company in the US from India and also you are not required to be a US citizen or to have a valid visa.

In actuality, Indian nationals must follow the identical steps as US residents to create a Delaware C corporation.

The Benefits of Registering a US company from India

Access to venture capital firms and startup investors is the main advantage of setting up your Delaware business from India.

The US has invested $130 billion in venture capital in startups annually on average over the last three years. Funds from established VC companies, angel investors, and startup syndicates are included in this (i.e.. crowdfunding).

By contrast, India is on course to have a capital market of$30 billion annually by 2025.

It is fantastic and definitely cause for celebration that the Indian capital market is expanding. But ultimately, creating a US company from India provides you immediate access to more money.

How to incorporate a US company as a founder in India

Six procedures must be taken in order to register an Indian firm in the US:

• Select the appropriate entity type for your company. The majority of Indian enterprises pick C corporations since they are highly preferred by investors.
• Choose the state where you want to register your business. Delaware is the state where the great majority of US tech companies are registered.
• Organize a company.
• The Internal Revenue Service can provide you with an employment identification number (EIN) (IRS). To open a US bank account, you must an EIN. Your corporation is also set up to pay taxes once you register with the IRS.
• Open a bank account in the US. You can open a US bank account once you obtain an EIN, which is necessary for conducting business in the US.
• By submitting reports, you can keep your company in good standing. You must submit annual reports to Delaware each year. March 1st is the filing deadline.

How to get a US Registered Agent

To create a business in the US, you do not need to reside there, but you do require a registered agent. On your behalf, a registered agent receives mail. They can receive official mail because they have a physical address in the state where you register.

That includes:

• Notices of compliance regarding reporting or other requirements
• Tax records from the state's revenue agency or tax division
• Process services (notices of lawsuits against your company)
• Your company's legal address cannot be the same as that of your registered agent. Your home address in India must be your legal address.

How to move your company’s registration to the US if it’s already registered in India

If your company is already registered in India, you can "Delaware flip" it to shift it to the US.

When your business is still new, has a small number of stockholders, and has no outside investors, doing this is easiest.

To do a Delaware flip:

• Make a Delaware C corporation registration. You must assign shares and name the directors and officers.
• To obtain any necessary government approvals for transforming your business, use lawyers and accountants in India. Additionally, you'll need to settle any unpaid debt or equity warrants.
• In exchange for equity in your new Delaware corporation, the shareholders of your Indian corporation consent to giving up their ownership.
• Once you've completed these requirements, your new Delaware C corp will become a fully owned subsidiary of your Indian equity.

US Taxes and Visas for Indian business owners

Your personal tax residency remains unchanged if you register your business in the US. Your corporation will pay taxes in the US since it is a distinct legal entity. You will continue to pay personal taxes in India as an Indian citizen.

To register your business in the US, you are not required to obtain a visa. But you will require one if you choose to relocate to the US in order to conduct your firm. For Indian nationals, there are a variety of work visas available, including the E-1, E-2, EB-5, L-1, and O-1 visas.

Hiring in India with your Delaware corporation

Once you have an Indian company registered in the US, you can hire local workers in addition to Americans if you so choose. However, you would need to go above and above in order to hire someone in India.

You can choose between two options:

1. Create an Indian company entity that will be a subsidiary of your Delaware C corporation and hire local staff. If you intend to hire a workforce that is primarily Indian, this is the easiest and most affordable choice.
2. Register with Deel- Deel gives you the option of using it as your employer of record (EOR) or contracting non-US talent to hire employees anywhere in the world. Any currency may be used to transmit payments. Another well-liked option for managing global payroll and HR is Remote Team. If you wish to hire workers outside of India and the USA or if you only want to hire a few Indian employees, choosing one of these agencies is the easiest and least expensive alternative.

Summary

By incorporating in the US, you can access the largest startup capital market in the world and solicit funding from US venture capitalists, angel investors, and syndicates.

A registered agent in Delaware must be hired even if a US address is not required to register a Delaware corporation there.

You don't need a work visa if you intend to work from India because your corporation will continue to pay taxes in the US and your personal tax situation won't change.

Either create an Indian subsidiary or use a firm like Deel to serve as your EOR if you want to employ Indians at your US corporation.

About Jordensky

At Jordensky, we are committed to providing an experience of the highest caliber while specializing in accounting, taxes, MIS, and CFO services for startups and expanding businesses.

When you work with Jordensky, you get a team of finance experts who take the finance work off your plate– ”so you can focus on your business.

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