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Register a Company in the USA from India- Overview

For Indian businesses that are seeking expansion or having a non-resident Indian consumer demand, stand a great opportunity to reap the many benefits of USA company registration, one of the most popular ways of starting a business.

Setting up a US company for your business is now easier than ever as the United States of America harbouring a multicultural population has a large number of English talking populace and is largely open to foreign businesses owing to its diversity. Dominant as the world’s top superpower with an economy that is fourteen times larger than India, it provides one of the most accommodating turfs for Indian businesses to easily flourish.

Therefore, as a non-resident pursuing US Incorporation, one is required to follow all the regular US business protocols just like a resident, with just a few additional steps.

Why USA company registration is beneficial to Indian Businesses?

As business laws and regulations are well-formed and corporate income tax rates are really low, it is extremely favourable for foreign businesses to efficiently thrive.

However, every state in the US is governed by its state laws and regulations which vastly differs from one another. If your business is largely dependent on one particular state and its demand for your services, it is wise to Incorporate your business thereby acquiring a Foreign Qualification Certificate. Nevertheless, Delaware, Wyoming and Nevada, in particular, provide the most complimenting business and taxation laws which makes it mainstream for companies to incorporate. In particular, Delaware is said to have no state sales tax and the state’s franchise tax for small US businesses is very meagre. Additionally, there is no need for non-residents to pay separate corporate income tax in Delaware.

Top 5 Benefits of USA Company Registration:

  • Business-friendly laws and regulations
  • Personal assets such as house or savings are protected from risks
  • Low Corporate income tax rates
  • The business is incorporated quickly in the US when done in Delaware, Wyoming and Nevada
  • Publicly revealing names of directors and shareholders of your US company is not required

How to Choose and Set-up the Right Company Structure in the US?

There are chiefly two main categories of incorporation such as LLC and C-Corporation for Indian businesses to choose from. However, LLC is most commonly chosen because of its ease towards single taxation and because of its adaptability. On the other hand, budding entrepreneurs wanting to appeal to venture capitalists and angel investors to raise funds, they must incorporate as a C-Corp and not an LLC. Also, if the company is planning to go public, C-corp would be the ideal choice to make.

Advantages of Limited Liability Company:

Limited Liability Corporation is an easy choice for many businesses as it offers extensive growth possibilities, poses very little risk, has no shareholders limit and gives increased credibility for the business incorporated. Moreover, when a company is incorporated under an LLC, taxes need not be paid on the trade profits at the legal entity stage. Rather, the taxes from the company’s profits is filed on the proprietors’ tax returns.

Advantages of C corporation:

C corporation is advantageous to foreign businesses majorly because of the multiple tax planning opportunities and the free transferability of shares it offers. Additionally, it also gives legal protection and has no limits on the number of shareholders or the number of owners. Although in C corporation, the profits are always taxed at the legal entity level. For example, if the profits and the resources of the business are split among the stakeholders as a bonus then the stakeholders are entitled to pay their corporate income tax dues on the profits thus creating a double taxation scenario.

Difference between LLC and C Corp

LLP C Corp
The owners are the members The owners here are the Shareholders
Appropriate for small-scale businesses with limited shareholders Apt for middle-size to substantially sizeable businesses with many shareholders
Members can set up the structure as they choose and manage Shareholders elect directors who manage business movements
Members are not held liable in an LLC Shareholders are not held liable in a C corp
Depending on the limitations of the operating agreement, transferability is planned Here the stock of shares can be transferred easily
In general, stakeholders from outside don’t prefer an LLC because they are structured to operate as partnerships mostly Foreign investors prefer C corp because they contain stocks, which is distributed among the shareholders

WHAT ARE THE DETAILS AND DOCUMENTS REQUIRED FOR US INCORPORATION? (Infographic)

  • Company Name
  • Business Type
  • Registered business physical US address
  • Registered Agent: (Y/N) (This is provided for, if you have another address, please mention)
  • Name of business partner(s)
  • Addresses of business partner(s)
  • Ownership: (%)

VAKILSEARCH US INCORPORATION PACKAGE INCLUDES (Infographic)

  • Name Check & Approval
  • Preparation & Filing of Article of Association
  • Registered agent service (One year)
  • Issuance of Certificate of Association
  • Federal employer Identification Number (EIN)

FAQs on USA Company Registration

Yes. A company that is pursuing US Incorporation has no obligation to have its headquarters in Delaware nor to have any business operations there.
As any good resource would suggest, it is always preferable to have a Corporate Seal from the bank, government agency or from some contracting parties, or, during the signature of certain contracts or official documents. Vakilsearch can help you get a Corporate seal. You just have to submit all the necessary documents and your seal will be made.
No, not necessarily. Actually, Vakilsearch assists with several professionals (lawyers, domain experts, and others) during the US Incorporation process and at a very reasonable cost. For more information get in touch with our legal experts.
To start a corporate bank account for your business you will need to produce Articles of Incorporation, Federal employer Identification Number (EIN), operating agreement, US business A copy of Passport, A Letter of Good Standing. For more information, our legal consultants will give you expert guidance free of cost.
Commonly, it is a corporation or a limited liability company (LLC).
A registered agent is a business or an individual who has been assigned to support service of process (SOP) when a business which is a legal entity is in need of legal action such as a lawsuit or receiving physical mails. In addition, one of the primary requirements for USA company registration is having a registered agent and registered physical US address within the state of formation.
An LLC is more flexible in operating and has less number of corporate rules when compared to an S corporation. For example, an S corporation cannot have more than 100 stockholders and must conduct an annual meeting of stockholders. However, owners of an S corporation may be subject to fewer taxes than LLC owners.

Why Vakilsearch?

4 Business Days

At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

9.1 Customer Score

We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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