
How do I Incorporate a Company in the USA from India?
Incorporate a Company in the USA, USA Company formation is now simply because there is no need to go to or physically be present in the United States. Because the procedure may be started and finished online in less than a week.
Indian businesses wishing to develop or have a non-resident Indian customer base can benefit from a number of USA company registration benefits. Because of its sophisticated infrastructure, technology, and enormous natural resources, the United States, as a developed nation, is an economic powerhouse. The economy is service-oriented, with services accounting for 80 percent of GDP and manufacturing accounting for around 15 percent.
With fast expansion and globalisation, as well as a significant English-speaking population, Indian enterprises have a distinct advantage when it comes to entering the American market. Most Indian enterprises with global aspirations believe that the United States is the best choice since it has the lowest corporation taxes and well-established business rules and procedures.
Documents Required for Company Registration in the United States of America
- Passport photocopy and Pan card
- Passport photocopy and Pan card Address Proof and ID Proof Documents
- Aadhar Card Signed Documents for Incorporation
- Photographs
Registration of a Company in the United States of America
The initial step in registering a US company is to upload the necessary documentation to the ICFO portal. Our business expert will then double-check the information and papers.
Simultaneously, we attempt to register the name and check its availability. After the name has been registered, we may go on to the third stage.
The process of preparing the AOA begins once the name is registered. Before registering a corporation in the United States, the directors, shareholders, and the secretary must sign this document. Our business adviser will keep you informed of the company registration procedure at all times.
After completing the AOA, the firm is formed, and the next step is to apply for an Employer Identification Number (EIN) from the United States.
Registered Agent
All Delaware LLCs and Corporations must have a registered agent in the state of Delaware who will receive and process all official mail on behalf of the Delaware firm. Our USA registration package includes one year of Delaware Registered Agent service.
Corporate Tax Rate
In the United States, LLCs and corporations are subject to two types of corporate income taxes: federal corporate tax and state corporate tax. The Federal Corporate Income Tax Rate was recently decreased from 35% to 21% by the Tax Cuts and Jobs Act (TCJA).
The corporate income tax rate varies by state in the United States. The lowest is 3% in North Carolina and the highest is 12% in Iowa. Corporate taxes in Delaware are charged at 8.7 percent of net profits. However, if a company is formed in Delaware but does not conduct business in the state, no state corporation tax is charged. As a result, foreign nationals and corporations intending to do business in the United States through Delaware should consider incorporating in Delaware.
Strategies for Entering the United States
In the United States, businesses can be formed as a single proprietorship, general partnership, limited liability company (LLC), or corporation. However, Indian corporations may only register as LLC or C-corporation in the United States.
In the United States, the rules and regulations governing the formation and operation of limited liability companies (LLCs) or corporations varied from one state to the next. We incorporate all LLCs or Corporations for Indian Nationals in Delaware since company registration in Delaware offers several advantages such as cheap taxes, low maintenance costs, and strong corporate regulations.
Incorporating in Delaware is a wonderful alternative not just for Indian nationals and firms, but also for American enterprises, as more than half of publicly listed and Fortune 500 companies in the United States are established in Delaware.
LLC (Limited Liability Company)
A limited liability company (LLC) is a form of business that combines the characteristics of a corporation and a partnership. In the event of a lawsuit or even bankruptcy, the owners are protected by a limited liability company. LLCs are more adaptable, and their compliance needs are straightforward.
A company requires resolutions and shareholder meetings, as well as the recording and filing of paperwork documenting meetings and votes. LLCs, on the other hand, do not require annual shareholder meetings.
C-Corporation
If the intention is to seek money from VCs and angel investors, it is preferable to form a C Corporation in the United States. Bankers, investors, customers, suppliers, and workers all believe that corporations are excellent for the majority of firms.
C-Corporations are distinct legal entities from the persons who own, control and manage them. As a result, it is treated as a normal person under tax regulations and can therefore participate in the business, and contracts can commence and be sued.
Why is it advantageous for Indian firms to register a company in the United States?
The first benefit is that the company rules and regulations are well-formed, as well as the corporate income tax rates are low, making it incredibly attractive for international businesses to invest.
It should be emphasised, however, that each state in the United States is regulated by its own set of rules and regulations, which vary greatly from one another. States like Delaware, Wyoming, and Nevada have the most complementary business and taxes regulations, making it easier for businesses to incorporate.
Delaware, in particular, has no state sales tax, and the state’s franchise tax for small US enterprises is likewise little. Furthermore, non-residents are not required to pay a separate business income tax in Delaware.
Besides that, here are some other benefits
- The rules and regulations are favourable to business.
- Personal assets, such as homes and money, are protected from obligations since there is little responsibility.
- The rates of corporate income taxation are modest.
The identities of the company’s shareholders and directors are not required to be disclosed under the legislation.
Difference between LLC and C- Corporation
LLC | C- Corporation |
The members of the LLC are the owners. | The stockholders of the C-Corporation are the owners. |
LLCs are ideal for small-scale firms with few stockholders. | Suitable for medium-sized to much larger organisations with a large number of stockholders. |
The constructions may be built by the members based on their abilities. | The Board of Directors selects the shareholders who run the company. |
Members’ responsibility is restricted. | In a C corporation, shareholders are not held accountable. |
Outside stakeholders dislike LLCs because they act as partnerships. | Foreign investors favour C-Corps because the equities are dispersed among the stockholders. |