Today in this Article we are talking about How to Open a Company in USA From India Online. Many investors and business firms which are from India are keen to set up a Company in US to expand the horizon of their products and services. Setting up of a company in US offers various advantages such as enhanced credibility in international market, attraction of angel investors, taxation benefits on taxation etc compare to India. Even now Opening a Business in USA From India now very easy procedure due to technology.
Can an Indian Register a Company in USA ?
Well, the answer is Yes. You can start your own company in the U.S even if you are a non-resident.You do not need a US mailing address, don’t have to be a US resident or visa holder to register a company in the US from India.
How to Open a Company in USA From India ?
If your intent is how to open a company in usa from india, you can get it done through the following 3 paths: –
Do it yourself: If you think you know all the laws of US company incorporation then you can incorporate it yourself. You need to be extremely careful while setting up as any wrong filing may land you in trouble.
Get Help from Expert: You can hire an expert who will handhold you at each step and get your business registered. He/she will also give you expert legal advice based on the needs of your business.
Online Incorporation in USA From India through myonlineca : This is a new option in incorporating your business. MyOnlineCA Which is India’s Largest Legal Service Provider Company Partner with USA Leading Incorporation Platform and Provide USA Incorporation Services to Indian Clients at very Low Cost. You need to just fill-up this form to avail their services.
Types of entity should you make in US ?
The very first thing to decide is which type of entity are you going to form for your business. You need to choose which business type is the most suitable for you.
Popularly there are preferably two kinds of entities to form in U.S.
- LLC (Limited Liability Corporation)
Register LLC (Limited Liability Corporation) in USA From India
LLC is the most flexible business structure provides you tax benefits, legal protection and limited liability for your personal assets. Limited Liability Corporation has the option to choose whether to be taxed as an individual or a corporation. LLC entity is also known as “Pass-through” entities.
Here, if you choose to be taxed as an individual, you can stave off double taxation. Whereas in corporation income is taxed twice. First, in the hands of the company and then in individual’s hands.
The liability of the members here is limited. But it is also one of the main reasons why venture capitalists don’t prefer to invest in an LLC. Moreover, venture capitalists prefer to take preferred stock which ensures steady income and ownership rights as well, which can be issued by a C-corporation only.
Register C-Corporation in USA From India
A C-Corporation is also known as closed corporation and is the common business structure in US with limited liability. This kind of entity can issue stocks and hence has very high potential for growth. Additionally, there is no restriction on the maximum no. of shareholders.
The compliance process of a C-Corporation is more comprehensive as compared to LLC. You will have to maintain BoA and comply with other rules and regulations. C-Corporation entity doesn’t have the choice as to how it wants to get taxed. It comes under double taxation where as a separate entity corporation is first taxed and then the dividend is taxed in the hands of individual.
However, if you want to raise fund in the future you might want to opt for C-corporation as VCs prefer C-corp. Moreover C-corporation doesn’t have a limit on the maximum shareholders. So when there is need for fund, more shareholders can be added.
Thus, the choice of entity form depends completely on the long-term vision of your company. If you want to expand your business in the future and intend to raise capital in the long run then you should go for C-Corporation.
In which state in US should you register?
After finalizing type of the entity, the next thing, you need to decide is the place where you want to set up your business. In US every state has their own laws & regulations for business registration and you can register anywhere.
However, there are two states named Delaware and Nevada are considered the most foreign friendly states. In these two states laws are quite relaxing for non-residents who want to start their business in US.
What is a registered agent in USA ?
A registered agent is an individual/company that will be the LLC’s or corporation’s official point of contact in the state to receive other legal documents, official communications from the state, and forward these documents to the LLC or c- corporation for which it is acting as registered agent.
What Documents Required to Register a Company in USA From India
Following are the documents needed for company registration in the US.
- Unique Company Name
- Passport of all directors
- Address Proof & ID proof documents
- Signed documents for Incorporation.
- IRS Form SS4 – Application for Employer Identification Number [EIN]
How to incorporate a company in US From India
These are the to register a US company from India:
- Choose the right Business entity type. Investors highly prefer C corporations, so most Indian companies choose this entity type.
- Decide in which state you want to register your company in. The beamy majority of US technology-based companies are registered in Delaware.
- File to incorporate.
- Get an EIN i.e., employer identification number from the Internal Revenue Service (IRS). To open a US bank account, you need an EIN. Registering with the Internal Revenue Service also sets up your corporation to pay taxes.
- Once you have an EIN, you can open a US bank account, which is essential for doing business in the US.
- Keep your company in good standing by filing reports. In Delaware, you have to file annual reports every year. The deadline for filing annual report is March 1st.
We hope this article how to open business in usa from india helps you in setting up your business in U.S. If you need any assistance for the same, kindly write to us.