How Indians Can Start a Company in the USA: Step-by-Step Guide, Costs, and Legal Requirements
Supreme Court clarifies that foreign entrepreneurs can register LLCs and C Corporations without U.S. residency.
Experts highlight benefits of U.S. incorporation, from investor access to global market expansion.
By Our International Laws Reporter
New Delhi: November 07, 2025:
For Indian entrepreneurs, expanding into the United States is often seen as the ultimate growth opportunity. The U.S. market offers access to global investors, advanced payment systems, and credibility with international clients. But the process of starting a company in the USA from India involves careful planning, legal compliance, and financial investment.
This article explains the types of companies available, the requirements for registration, the costs involved, and the visa options for Indian entrepreneurs. It also highlights the challenges and benefits of managing a U.S. business from India.
Why Start a Company in the USA?
Indian startups and established businesses often look to the U.S. for several reasons:
- Access to Investors: American venture capitalists and angel investors prefer companies incorporated in the U.S.
- Global Credibility: A U.S. company structure signals professionalism and reliability to international clients.
- Payment Systems: U.S. banking and payment platforms are more advanced and widely accepted.
- Market Expansion: Incorporation allows Indian businesses to directly sell to American customers.
Types of Companies Available for Indians
Not all U.S. company structures are open to foreign citizens. The main options are:
- Limited Liability Company (LLC): Popular among small businesses. Protects owners’ personal assets and offers flexible taxation. Available to non-U.S. residents.
- C Corporation: Suitable for larger businesses seeking investors. Provides strong legal protection but requires more paperwork. Available to non-U.S. residents.
- S Corporation: Not available to non-U.S. citizens or permanent residents.
- Sole Proprietorship/Partnership: Not available to non-U.S. residents.
Most Indian entrepreneurs choose LLCs or C Corporations depending on their business goals.
Requirements to Register a U.S. Company from India
To register a company in the U.S., Indian entrepreneurs must complete several steps:
- 1. Choose a State: Delaware is the most popular due to business-friendly laws, but states like Wyoming and Nevada are also attractive.
- 2. Select a Business Name: Must be unique and not already registered.
- 3. Appoint a Registered Agent: A local representative in the chosen state who receives legal documents.
- 4. File Articles of Organization (LLC) or Articles of Incorporation (Corporation): Submitted to the Secretary of State.
- 5. Obtain an Employer Identification Number (EIN): Issued by the IRS for tax purposes.
- 6. Apply for Licenses and Permits: Depending on the industry.
- 7. Open a U.S. Business Bank Account: Requires EIN and company registration documents.
Costs of Setting Up a Company
The costs vary by state and type of company. For an LLC, typical expenses include:
- Filing Fee: $40–$500 USD
- Name Reservation: $10–$50 USD
- Registered Agent Fee: $0–$300 USD annually
- EIN Filing: Free
Total Initial Cost: $50–$850 USD
Annual compliance costs include:
- Annual LLC Fees: $25–$4,500 USD
- State Franchise Tax: $300–$800 USD (varies by state)
- Reporting Fees: $0–$800 USD
The average first-year cost of running a small U.S. business is estimated at around $40,000 USD, including rent, salaries, marketing, and taxes.
Opening a Business Bank Account
Once registered, Indian entrepreneurs can open a U.S. business bank account. This is essential for:
- Receiving payments from U.S. clients
- Paying taxes
- Managing operational expenses
Challenges include time zone differences and paperwork requirements. Some banks may require physical presence, though fintech platforms like Wise Business offer digital alternatives for managing accounts remotely.
Visa Options for Indian Entrepreneurs
Registering a company does not automatically grant the right to live or work in the U.S. Entrepreneurs must apply for appropriate visas:
- E-2 Investor Visa: Requires at least $100,000 USD investment in a U.S. business. Allows temporary residence.
- EB-5 Investor Visa: Requires $500,000 USD investment and creation of at least 10 jobs. Grants permanent residency.
- O-1 Visa: For individuals with extraordinary ability in business, arts, or sciences.
- International Entrepreneur Program: Allows foreign founders with at least 10% equity in a U.S. startup to stay temporarily if their presence benefits the company and job creation.
Benefits of Incorporation in the U.S.
- Investor Access: U.S. incorporation is often a prerequisite for venture capital funding.
- Legal Protection: LLCs and Corporations protect personal assets from business liabilities.
- Tax Advantages: Depending on the state, tax rates may be lower than in India.
- Global Expansion: Easier to establish credibility with international clients.
Challenges Faced by Indian Entrepreneurs
- Compliance Costs: Annual fees and taxes can be high.
- Legal Complexity: U.S. corporate law requires careful compliance.
- Banking Difficulties: Opening and managing accounts from India can be time-consuming.
- Visa Restrictions: Running a U.S. company from India is possible, but living in the U.S. requires proper visas.
Expert Opinions
Legal experts emphasize that Indian entrepreneurs should consult immigration attorneys and corporate lawyers before registering. Mistakes in compliance can lead to penalties.
Business consultants suggest starting with an LLC in Delaware for flexibility, then converting to a C Corporation if seeking venture capital.
Conclusion
Starting a company in the USA from India is possible and increasingly popular among Indian entrepreneurs. With proper planning, legal compliance, and financial investment, Indian businesses can access the U.S. market, attract global investors, and expand internationally.
The process involves choosing the right company structure, registering with a U.S. state, appointing a registered agent, obtaining an EIN, opening a bank account, and complying with annual fees and taxes. While challenges exist, the benefits of U.S. incorporation make it a valuable step for ambitious Indian entrepreneurs.
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