How to start a Business in the US from India

Last Updated at: Dec 23, 2020
How to start a business in the US from India
On 16th June, 2020, the Confederation of Indian Industry (CII) published its annual report titled “Indian Roots, American Soil 2020”. The report says as many as 155 Indian companies have invested more than $22 billion and created 125,000 jobs in the US since March 2019. Of the companies surveyed by CII, 24.52% represented life sciences, pharmaceutical and healthcare, 27.10% were information technology and telecommunication firms, 19.35% were manufacturing companies and 10.32% were from the automotive sector.


Are you looking to start a business in the U.S.?

Well, you are not the only Indian citizen who is keen to know about how to start a business in the USA for non-citizens in recent times. The process of starting a business in the U.S. is made much easier these days and you can do so even if you do not own a valid Visa and are not planning to come to the U.S. any time soon.

In this blog here, we will provide the answers to a few frequently asked questions so that you can get a fair idea about how to start a business in the USA for an Indian.

Is a visa required to start a business in the U.S.?

No, you do not require a visa to start a business in the U.S. from India.  But, having your own business in the U.S. does not provide you the right to come and stay in the country. Therefore, it’s always beneficial to have a visa in case you need to visit your company in the U.S. for any reason in the future. As a professional managing your business in the USA, you can opt for any of the following visa options-

  • B-1 Visa– This visa allows you to visit the U.S. for 6 months and is granted by the Government to promote entrepreneurship. The validity is for 10 years but can be extended upon request.
  • E-2 Visa– This is a popular option among non-resident entrepreneurs. This visa can be renewed indefinitely. There are 3 main criteria to qualify for an E-2 Visa.
  • You must be from a country that is a part of the Treaty of Commerce, Friendship or Navigation with the U.S.
  • Also, you must make (or intend to make) capital investment of a significantly high amount (typically, should be higher than $100 K) into the US business.
  • You must be having a controlling stake (50%, at least) in your business.

register your business in the USA

Which state should you register your business in?

Ideally, you should register in the state you are operating your business. But, in the U.S.A, you don’t need to register your business in the state you operate. The tax rates differ from state to state. Hence, you may decide to register in a state that has low sales tax rates and thus, can save a lot of money for your business. The State of Delaware is extremely popular among foreign entrepreneurs as it offers a whole lot of protections for non-resident directors and shareholders.

What type of company to incorporate?

As a foreigner, you can avail any one of the following two business structures-

  • Limited Liability Company (LLC) – Registering as an LLC is ideal for high-risk businesses as you will not be personally liable for any debts accumulated by your business. Your personal assets will remain completely safe in case something wrong happens to your business on a later date. The following documents are required to form an LLC-
  • The LLC agreement
  • The certificate of formation
  • The confidentiality agreement between the members
  • The C-Corp-This structure is suitable if you are looking to set up a start-up in the U.S. The following documents are required to form a C-Corp from India-
  • Articles of incorporation
  • Bylaws with the names and addresses of the officers and shareholders of the company.
  • The shareholder agreement of the company

Know more about the benefits of registering your business in the U.S.

How to register a company in the USA?

The registration process differs slightly from one state to another. Also depends on whether you are forming a C- Corp or an LLC. However, we are going to look at the registration process employed in the State of Delaware. This will, however, give you a basic idea of the requirements and procedures-

  • You should choose a unique business name that is not registered already with the USPTO (the United States Patent and Trademark Office).
  • Also, you should authorise a local registered agent to receive official documents on your behalf
  • You must fill a certificate of incorporation with the Government. Ir provides information such that the name and address of your company and the agent, the name and address of the incorporator and the value of the company’s authorised shares.
  • Next, you should pay the franchise tax
  • The next step is to get the Employer Identification Number (EIN), which will allow you to open a bank account, hire employees and obtain other licenses as necessary. You may approach the IRS to apply online for your EIN, free of cost.
  • While registering your business, you may also need to provide the Industry Classification Code for your business.

Click here: company registration online

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