How to Register a Company in Texas from India (2026): LLC or Corporation, Costs, Documents, Texas Franchise Tax and the Indian Side

Texas is one of the first places many Indian founders think of when they decide to set up in the USA. Houston and Dallas–Fort Worth have large Indian communities. Many Indian IT and engineering firms already work with clients in Texas. The state has no personal income tax, and it has a reputation for being friendly to business. So when a founder in Bengaluru, Hyderabad, Pune or Ahmedabad searches for "US company setup", Texas is often at the top of the list.

The good news is that an Indian citizen living in India can own 100% of a Texas company, form it without visiting the USA, and run it from India. The less obvious part is that Texas is not the best choice for every Indian founder. This guide explains how registering a Texas company from India works, what it costs, which documents you need, what Texas expects every year, what changes on the Indian side, and when another state would serve you better.

Short answer: an Indian resident can register a Texas LLC or corporation entirely online, with a passport and a company name, and no SSN or US visit. With UCB, a Texas LLC with EIN costs $504 all-in, including Texas's $300 filing fee and the first-year registered agent, and the state usually approves it in about 16–18 business days. Every Texas company must file a franchise tax report by May 15 each year; for reports due in 2026 and 2027, a company with revenue of $2.65 million or less owes no franchise tax but must still file. A single-member LLC owned from India files Form 5472 with the IRS every year. On the Indian side, funding the company is generally an overseas direct investment (ODI) through your bank, within the $250,000 yearly LRS limit. Choose Texas if your business will really be in Texas; for a service or online business run from India, Wyoming or New Mexico is usually cheaper.

Can an Indian citizen register a company in Texas?

Yes. Texas, like every US state, lets anyone form a company regardless of nationality or residence. You do not need:

• a US visa or green card;
• a Social Security number;
• a US home address; or
• a US partner or director.

You can be the sole owner and manager of a Texas LLC, or the sole shareholder, director and officer of a Texas corporation. What Texas does require is a registered agent with a street address in Texas, which receives legal papers and state mail for the company. Every UCB formation includes the registered agent for the first year. See registered agent explained.

The company itself can operate from India. Working from India for clients anywhere, including in Texas, does not require a US work visa, because you are not working in the USA. Coming to the USA to work in person is a separate question for an immigration lawyer.

Why Indian founders choose Texas

Texas is a strong choice when the business genuinely connects to the state:

• Clients or partners in Texas. IT services, engineering, energy and healthcare firms in Houston, Dallas, Austin and San Antonio sometimes prefer a vendor registered in their own state.
• Physical operations. Importers using the Port of Houston, distributors with a warehouse or third-party logistics provider in Texas, and businesses trading with Mexico.
• Property in Texas. Rental or commercial property in Texas is normally held through a Texas company. See US real estate through an LLC.
• Plans to move to Texas. A founder who expects to relocate, for example on a work or investor visa arranged with an immigration lawyer, avoids registering the company in a second state later.
• No state income tax for individuals, and no franchise tax due below the threshold. For a small company, the yearly Texas cost is mostly the registered agent, because the franchise tax report itself is free.

When Texas is not the best choice

Texas is usually the wrong state when the business has no real connection to Texas:

• Freelancers, consultants and agencies working from India for US clients. A Wyoming or New Mexico LLC gives the same access to US clients, Stripe and US banks for less.
• SaaS, apps and digital products with no US office. See US company for SaaS founders.
• Amazon sellers using FBA, whose stock is spread across Amazon warehouses in many states. A Texas company does not change which states' sales tax rules apply.
• Founders who value privacy. Texas puts the names and addresses of the company's managers or members on its certificate of formation, and asks for them again on the yearly report. For many Indian owners, that means their home address in India becomes part of the public record.
• Founders in a hurry. Texas approval takes about 16–18 business days with us, against about 3 in Wyoming.

See the Texas LLC guide, the Wyoming LLC guide, best state for non-residents and our state selector.

LLC or corporation in Texas?

For most Indian founders, an LLC is the simpler choice. A corporation makes sense if you plan to raise investment, issue shares to employees, or want the company to keep and reinvest profits in the USA. If investors are part of the plan, ask us first, because they usually expect a Delaware corporation rather than a Texas one. See LLC vs Inc for non-residents and the US C-Corporation guide.

S-Corporation status, which some US articles mention, is not available to companies owned by non-resident aliens.

What it costs to register a Texas company from India

There is no state fee on top of these prices: Texas's own $300 filing fee is already included. Our optional add-ons, a US business address with your own suite number ($60 a year) or a virtual office with a lease agreement ($49 a month), are available for Texas companies. On the Indian side, add your chartered accountant's fees for ODI reporting and your Indian return, and your bank's remittance charges.

Model your own numbers with the US company cost calculator, or read how much a US LLC costs every year.

Documents you need from India

You do not need an Aadhaar card, a US address, an SSN or an ITIN to form the company or get its EIN. Most Indian founders with a single-member LLC never need an ITIN; see what is an ITIN and who needs one.

How long it takes

The whole process is remote. You send documents, approve the details and sign electronically; we handle the filings. See open a US company without visiting and EIN for non-residents.

What a Texas company must do every year

The franchise tax report, due May 15

Texas has no corporate income tax. Instead, every LLC and corporation formed in Texas is subject to the franchise tax. For reports due in 2026 and 2027, a company whose annualised total revenue is $2.65 million or less owes no franchise tax. That covers most small companies owned from India.

Owing no tax does not mean filing nothing. Every Texas company must still file a franchise tax report by May 15 each year, together with a public information report listing its managers or officers. Missing it leads to penalties and, eventually, to the company forfeiting its right to do business in Texas. This is the most common way Texas companies owned from abroad get into trouble. See the Texas LLC guide and reinstating a dissolved US LLC.

The registered agent

The agent must stay in place every year. If it lapses, the company can lose its standing.

The federal return

See Form 5472 explained and the US tax filing checklist.

Sales tax

If the company sells taxable goods or services in Texas, or has a warehouse or staff there, it may need a Texas sales tax permit. A consultancy or software business serving clients remotely usually does not. Sales tax registration and returns are not a service we provide, but we will tell you when you need them and refer you. See state taxes for a foreign-owned LLC.

Does a Texas LLC owned from India pay US income tax?

A single-member LLC owned by an Indian resident is, for US federal tax, treated as part of its owner. The owner pays US tax only on income effectively connected with a US trade or business, which usually requires real activity in the USA: an office, employees, a dependent agent, or work done while physically there. A founder who does all the work from India, for clients in Texas or elsewhere, usually has no US business income, so neither the LLC nor the owner pays US federal income tax. The India–US tax treaty adds a further test: business profits are taxable in the USA only through a permanent establishment there.

The picture changes if the company has a Texas warehouse, office or staff, which are exactly the reasons many founders choose Texas. Then some income may be taxable in the USA, and the owner may need a US return. See effectively connected income explained.

A Texas corporation is a US taxpayer in its own right and pays 21% federal tax on its profits. See the 21% corporate tax explained.

The Indian side: ODI, LRS, TCS and your Indian return

Indian tax and foreign exchange law is outside what we advise on, and every Indian founder should have a chartered accountant for it. In outline:

• ODI. Putting money into your Texas company, such as the capital for the bank account, is generally an overseas direct investment under India's overseas investment rules of 2022, made through your authorised dealer bank, which reports it. A resident individual can invest only in an operating business that is not in financial services, so a company set up mainly to trade shares or crypto may not qualify.
• LRS. A resident individual can send up to $250,000 per financial year abroad under the Liberalised Remittance Scheme, across all purposes.
• TCS. Investment remittances above ₹10 lakh in a financial year attract 20% TCS, which is credited against your income tax but ties up cash until then.
• Indian income tax. Indian residents are taxed on worldwide income. How India classifies your US LLC, and whether profits are taxed as they arise or when distributed, needs your CA's view. Foreign assets, including your interest in the company and any US bank account you control, must be disclosed in your Indian return (Schedule FA).
• Bringing money home. Your Indian bank will ask about the purpose of money arriving from the US company. Keep invoices and company records ready.

All of this is covered in more detail in registering a US company from India. If your Indian private limited company, rather than you personally, will own the Texas company, the ODI rules for Indian companies apply instead; ask your CA before forming.

Banking for a Texas company owned from India

A Texas company can apply for a US business bank account remotely, with its formation document, EIN letter, the owner's passport and proof of address. Banks look at the business description, the website, the source of funds and consistency between documents. Some banks accept the registered agent's address as the company's address; many do not, which is why a US business address with your own suite number often helps. See US business bank accounts for non-residents, why banks reject non-resident applications and Stripe for non-residents.

Worked examples

These are illustrative examples, not client cases.

Example 1: the Dallas IT client. A software consultant in Hyderabad has a long-term client in Dallas whose procurement team prefers a Texas vendor. The consultant forms a Texas LLC, gets an EIN and a US bank account, and invoices the client from the LLC. All the work is done in India, so there is usually no US income tax, but the LLC files Form 5472 each year and the Texas franchise tax report every May 15. The consultant's CA handles ODI for the initial capital and the Indian return.

Example 2: the freelancer who did not need Texas. A designer in Pune with clients across the USA, none in Texas, asks for a Texas LLC because "Texas is business-friendly". Texas would cost more to form, put the designer's address on the public record and add a yearly report. A Wyoming LLC at $249 does the same job for this business.

Example 3: the importer. An Ahmedabad textile exporter wants to sell to US retailers from stock held in a Houston warehouse. Texas is the natural choice: the company has a real presence there. Because the warehouse may create US business income and Texas sales tax obligations, the founder takes US tax advice before starting, and we refer them to a sales tax specialist.

Example 4: the startup raising money. Two founders in Bengaluru plan to raise a seed round from US investors. They first asked for a Texas corporation. Investors usually expect a Delaware corporation, so we recommend Delaware at $308. If they later open an office in Austin, the Delaware company registers to do business in Texas.

Common mistakes Indian founders make with Texas

• Choosing Texas for its reputation when the business has no Texas connection, and paying more for no benefit.
• Missing the May 15 franchise tax report because no tax was due. The report is required anyway.
• Not expecting their Indian address to be public on the Texas record.
• Skipping the ODI formalities when sending money to fund the company.
• Giving US clients a W-9 for a single-member LLC owned from India. The usual form is the owner's W-8BEN. See W-8BEN-E vs W-8BEN explained.
• Ignoring Form 5472 because the company had little or no income.
• Forming a Texas corporation for investors who will ask for Delaware.

Frequently asked questions

Can I register a Texas company from India without visiting the USA? Yes. Formation, EIN and the bank application are all done remotely.

Do I need a US address? No. The registered agent provides the Texas address the state requires. A separate US business address is optional and often helps with banks. See US business address explained.

Do I need an SSN or ITIN? No, not for the company or its EIN.

Can I be the only owner? Yes. One person can own and manage a Texas LLC, or be the only shareholder, director and officer of a Texas corporation.

Does RBI approval have to come before forming the company? Forming the company does not involve the RBI. Sending money from India to invest in it is an ODI made through your bank, which reports it. Talk to your CA and your bank before you transfer the capital.

Can I convert my Texas LLC to a Delaware corporation later? It is possible, but it is a legal process with tax consequences that we refer to a specialist. It is better to choose the right structure at the start.

What if I already have a Texas LLC and missed the May 15 report? File it as soon as possible. If the company has already forfeited its status, it can usually be reinstated. See reinstating a dissolved US LLC.

How UCB helps Indian founders register in Texas

We form Texas LLCs and corporations for Indian founders remotely, all-in: a Texas LLC with EIN is $504, including Texas's filing fee and the first-year registered agent, and our formation, EIN and bank account package adds the US bank application. Every year we file the Texas franchise tax report, keep the registered agent in place, and prepare the federal return through our US tax filing service at $300. We have an office in Bangalore as well as in the USA, and we work alongside your Indian chartered accountant, who handles ODI, TCS and your Indian return. If Texas is not the right state for your business, we will tell you and recommend a better one. See Texas company formation.

Planning a company in Texas from India? WhatsApp us at +91 8105 199 399 or email enquiries@ucbsolutions.com with what your business does, and we will tell you whether Texas is the right state and exactly what it will cost.