How to Register a US Company from India in 10 Minutes?

TL;DR

Establishing a U.S. corporation provides:

• Global access to the largest startup capital market.
• Facilitating fundraising from American venture capitalists.
• Angel investors.
• Syndicates.

A US address is not a prerequisite for registering a Delaware corporation; however, enlisting a registered agent in Delaware is necessary.

For those working remotely from India, personal tax status remains unchanged (with the corporation fulfilling tax obligations in the U.S.), eliminating the need for a work visa.

When hiring Indian employees for your U.S. corporation, options include forming an Indian subsidiary or utilising services like Deel to function as your Employer of Record (EOR). 

With Inkle, you get 20% off Deel and a free HRIS. 

Registering a company in the United States from India doesn't require a U.S. mailing address, and you aren't obligated to be a U.S. resident or visa holder. The process for Indian citizens to register a Delaware C corporation is identical to that for U.S. residents.

This article encompasses the following topics:

1. Advantages of registering your company in the U.S.
2. Incorporation process for foreign founders
3. Obtaining a U.S. registered agent
4. Transferring your company's registration to the U.S. if it's already registered in India
5. Comprehensive information on taxes, work visas, and the hiring process.

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The advantages of registering a U.S. company from India

The advantages of registering a U.S. company from India include the primary benefit of gaining access to venture capital firms and startup investors, particularly when establishing a Delaware corporation.

Over the past three years, the U.S. has consistently witnessed an annual average of $130 billion in venture capital investments in startups. This figure encompasses contributions from traditional V.C. firms, angel investors, and startup syndicates (such as crowdfunding).

In contrast, India is projected to reach a capital market of $30 billion annually by 2025.

While the growth of the Indian capital market is promising and certainly a cause for celebration, the key takeaway is that registering a U.S. business from India immediately provides access to a larger pool of funds.

How to register a U.S. company as a founder in India involves six essential steps:

1. Choose the Right Entity Type: Select the most suitable entity type for your business. Investors favor C corporations highly, making them a popular choice for most Indian companies.
2. Select the State of Registration: Decide on the state in which to register your company. Delaware is a prevalent choice, with most U.S. tech companies and 70% of Fortune 1000 companies registered there.
3. File for Incorporation: You can avail a pre-incorporation package from Inkle. 
4. Obtain an Employer Identification Number (EIN): Secure an EIN from the Internal Revenue Service (IRS). This number is crucial for opening a U.S. bank account and ensures that your corporation is set up to meet tax obligations. 
5. Open a U.S. Bank Account: With an EIN in hand, opening a U.S. bank account is vital for conducting business in the U.S.
6. Maintain Good Standing: Fulfill your reporting obligations by filing annual reports in Delaware. The deadline for this is March 1st. 

With Inkle, you get built-in tools to facilitate U.S. compliance with filing requirements, ensuring your company remains in good standing.

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How to get a U.S. registered agent

Securing a U.S. registered agent is necessary to initiate a company in the United States. While residing in the U.S. is not a prerequisite, having a registered agent is essential. The registered agent receives mail on your behalf and must possess a physical address in the state of your registration to handle official correspondence.

This includes:

1. Compliance notifications regarding reporting or other obligations.
2. Tax-related documents from the state's revenue or tax department.
3. Service of process, which entails notices of lawsuits against your company.
   

It's crucial to emphasize that your company's legal address cannot be the same as your registered agent's address. Your legal address must correspond to your residence in India.

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How to move your corporate registration to the U.S. if it's already registered in India

If your company is already registered in India, you can effectively relocate it to the U.S. through a process known as a "Delaware flip."

This transition is most straightforward when your company is in its early stages, characterized by a small number of shareholders and the absence of external investors.

Here's how to execute a Delaware flip:

1. Register a Delaware C corporation, specifying directors, officers, and share allocations. 
2. Engage lawyers and accountants in India to secure any required regulatory approvals for your company's conversion. Additionally, settle any outstanding debts or warrants for equity.
3. The shareholders in your Indian corporation consent to surrender their equity in exchange for equity in the newly established Delaware corporation.
4. Following these steps, your Indian equity is transformed into a wholly owned subsidiary of the newly formed Delaware C Corp.

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Taxation and Visas for Indian Entrepreneurs in the U.S.

Establishing your business in the U.S. does not alter your personal tax residency. As a distinct/separate legal entity, your corporation will fulfill its tax obligations in the U.S. As an Indian citizen, you will continue to meet your individual tax responsibilities in India.

While obtaining a visa is not mandatory for registering your company in the U.S., it becomes necessary if you choose to relocate to the U.S. to oversee your business operations. Various visa options are available for Indian citizens, such as E-1, E-2, EB-5, L-1, and O-1 visas. 

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