How to Register a Company in the USA From India? | Benefits of Registering a US Company From India

Kinnary Nensee Kinnary Nensee
Sep 8, 2022 5 min read
How to Register a Company in the USA From India? | Benefits of Registering a US Company From India

The common belief is that setting up a company in the United States of America is a first step in creating a global brand. One example of this is the company Uniqlo which began operations outside of the US, then entered the country, became successful, and from there grew into a global brand.

The U.S. Chamber of Commerce states that 7.8 million Americans are employed by foreign investors creating an annual payroll of USD 645 billion. The country’s administration recognises this trend and welcomes the influx of foreign businesses which creates jobs for US residents and improves the country’s economy.

Incorporating a US Company as a Founder Based in India

Benefits of Registering a US Company From India
Hiring Employees in India With a US Registered Company

Business Ideas to Start in New York

Incorporating a US Company as a Founder Based in India

The growth of the Indian capital market is exhilarating and celebratory. However, registering a US business from India allows immediate access to more funds. There are a few steps to register a company in the US from India:

Business Entity

The first and most important step is choosing the right type of entity for the business. It could be an LLP or a C corporation. A C corporation is a legal structure for a corporation in which the owners or shareholders are taxed separately from the business entity under the United States Federal Income Tax Law. Most companies are registered as C corporations as the investors highly prefer it.

State of Registration

The next logical step is to decide the state in which to register the company. Most US tech companies and approximately 70% of the Fortune 1000 Companies are registered in the state of Delaware.

Articles of Incorporation

In the United States of America, the Articles of Incorporation are filed with the Office of the Secretary of State where the business has chosen to operate. Concisely, the Articles of Incorporation should include the name of the company, type of corporate structure and number and type of authorized shares.

Employer Identification Number

Online Application for EIN
Online Application for EIN

The Internal Revenue Service (IRS) issues an Employer Identification Number (EIN), which also sets the company up for paying taxes. Β 

Opening a US Bank Account

The EIN, procured from the IRS, sets the company up for opening a US bank account, essential for conducting business in the US.

Continued Regular Filing

Filing company reports is an annual requirement in the state of Delaware. The deadline for filing these reports is March 1st of every year. Regular report filing keeps the company in good standing with the authorities. Β 

Get a US Registered Agent

While maintaining a US residency is not mandatory, the company is required by law to get a US-registered agent in the same state that the company is registered. This is so that the agent can receive the company’s mail on their behalf. The mail includes Compliance notices about reporting or other requirements, Tax documents from the state’s revenue or tax departments and services of process (notices of lawsuits against the company). However, the registered agent’s address cannot be used as the company’s legal address, which must be the owner’s address in India. Β 


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Benefits of Registering a US Company From India

Foreign Direct Investment (FDI) from India in the USA from 2015 to 2021
Foreign Direct Investment (FDI) from India in the USA from 2015 to 2021

Registering a US company carries many benefits:

Favourable Economic Environment

The country offers foreign investors to purchase US assets, including real estate, at lower prices than their home country. The wide diversity in income and interest levels ensures there is a ready market for any type of product.

Government Incentives

Many states and cities offer financial incentives to foreign investors to establish business in a particular location. These incentives are offered in the form of tax credits, lower commercial real estate taxes, and other myriad government assistance.

Same Advantages as a US Resident Owned Business

Businesses in the US are treated on an equal footing, whether run by a resident or non-resident. This is beneficial to a non-resident business owner for transferring capital or acquiring a business.

Access to New Markets

The US has a trade agreement with 20 countries that provides a marketing advantage to US-based manufacturing companies. This is in addition to the wide potential customer pool of US residents.

Stable Political Environment

The stable political environment of the country makes it a very attractive market for venture capital and private equity funding. The US is ranked 6th by the World Bank for its overall ease of doing business.

Technological Advancements

The US is known for its advanced technology and the access it provides which awards production enhancement and worldwide communication.


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Hiring Employees in India With a US Registered Company

Once a US company has been registered from India, the company is not restricted to hiring Americans. It can hire team members locally from India. However, there are a few extra requirements that need to be fulfilled. These are:

Creating an Indian Subsidiary

An Indian business entity must be created, which is a subsidiary of the C corporation, to hire employees locally. This is the simplest and cheapest option if the business plans to hire mostly local workers.

Hiring a Service Provider

Hire a service provider to handle international payroll and HR activities. These companies offer services to act as the company’s employer of record, and the payments can be made in any currency.

Conclusion

Registering a US company from India gives the business easy access to the largest startup capital market in the world. It allows the business to raise money from American Venture Capitalists, Angel Investors, and Syndicates. It offers many benefits to conducting business, not to mention the global opportunities that immediately open for business expansions and growth.

FAQs

Can a foreigner register a company in the USA?

Usually, a foreigner can register a company in the USA. Also, it is not essential to hold a green card to own a corporation in the USA as the process for registering a company is the same for both foreign citizens and US residents.

How much does it cost to register a company in the USA?

The cost to register a company in the USA varies from state to state. In general, the cost ranges between $600-$1400.

What are the benefits of registering a company in the USA?

There are many benefits of registering a company in the USA. These are:

  • Favourable Economic Environment
  • Stable Political Environment
  • Technological Advancements
  • Government Incentives
  • Access to New Markets
  • Same Advantages as a US Resident Owned Business

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