In 2026, many Indian SaaS, HealthTech, FinTech and EdTech startups are looking beyond India for growth. US company registration for Indian founders can unlock access to a 330+ million‑person market and deep investor networks. A U.S. entity – typically a Delaware C‑Corporation – boosts credibility with global clients and VCs. However, overwhelmed founders juggling products and investors need clear, practical guidance. This guide (2026 edition) breaks down the entire process in straightforward terms. It covers planning, incorporation, banking, accounting and compliance, with an emphasis on the latest rules (e.g. beneficial‑ownership reporting). The tone is transparent and no-nonsense, so busy founders get the real answers they need.
For Indian entrepreneurs, the U.S. offers unparalleled scale and funding opportunities. Most choose business‑friendly states like Delaware for incorporation. Delaware’s flexible corporate laws and the specialized Court of Chancery reduce legal risk, Founders can review official requirements via the Delaware Division of Corporations. Delaware also has favorable tax rules for out‑of‑state businesses, and the India–U.S. tax treaty lets founders avoid double taxation by crediting U.S. taxes in India. In short, a Delaware C‑Corp unlocks investor access (multiple stock classes for VC), credible branding, and tax/legal advantages, which is why it has become the default choice for founders targeting U.S. capital and markets.
Benefits of US Incorporation for Indian Startups
Preferred structure (Delaware C‑Corp): U.S. VCs and angels expect to invest in a Delaware C‑Corporation. This structure allows issuing multiple classes of stock, is well understood by investors, and leverages Delaware’s pro‑business courts.
Investor access: A U.S. entity signals commitment to the American market, making fundraising easier. U.S. investors generally invest more readily in a familiar structure. Roughly 70% of foreign entrepreneurs choose LLCs or corporations when incorporating in the U.S. due to their investor‑friendly systems.
Global credibility: Being U.S.-registered boosts trust with international clients and partners. For context, over 60% of Fortune 500 companies are incorporated in Delaware, reflecting the state’s reputation as a corporate haven.
Tax & legal advantages: Delaware imposes no sales tax and (for non‑Delaware businesses) no corporate income tax. Additionally, India’s Double Tax Avoidance Treaty means any U.S. taxes paid (e.g. 21% federal corporate tax) can be credited against Indian tax. This mitigates the impact of double taxation.
Step-by-Step Process
- Pre-incorporation preparation: Choose your business name and check availability with the Delaware Secretary of State. Also verify U.S. trademarks to avoid conflicts. Prepare formal founder/shareholder agreements, defining equity splits, vesting and roles, to prevent disputes. Draft any necessary NDAs or IP assignments before filing.
- Register the business (Delaware C‑Corp): File the Delaware Certificate of Incorporation (Articles) with the Secretary of State. This document names your corporation, directors, and authorized shares. Delaware requires a registered agent (a U.S. address) for service of process. Incorporate using a pro‑business structure: Delaware’s flexible statutes allow a formal board/officer hierarchy or simpler management, depending on your needs. For startups, it’s common to authorize millions of shares (often at low “par” value) to enable raising capital.
- Obtain an EIN: Apply for an Employer Identification Number (EIN) — your U.S. tax ID — by submitting Form SS-4 or online. Indian founders can apply for an EIN with the IRS even without a U.S. Social Security Number.
- Open a U.S. bank account: With your incorporation papers and EIN, open a U.S. business bank account. In 2026, several fintech banks (Mercury, Brex, Relay, Wise, etc.) allow remote account opening for non‑resident founders. These require your incorporation documents, EIN and passports, but no U.S. Social Security Number. Traditional banks (Bank of America, Chase) often still require a personal visit. Gather all required KYC documents in advance and consider fintech options to save time.
- Set up accounting and compliance systems: Choose a cloud accounting platform (QuickBooks Online, Xero, etc.) configured for U.S. GAAP. Rigorous bookkeeping is crucial: U.S. tax law and investor due diligence demand accurate financials. It’s highly advisable to outsource U.S. bookkeeping to a firm experienced with cross‑border issues. Profitjets, for example, recommends outsourced accounting to ensure compliance and transparency. An experienced financial advisor or virtual CFO can help set up robust processes, forecasting and reporting tools. Track cash flow and key metrics from day one.
- Appoint a registered agent and U.S. address: Legally, every U.S. company needs a registered agent in its incorporation state. The agent maintains a physical address (not a P.O. Box) for legal and tax correspondence. Many international founders use professional registered‑agent services (Profitjets offers one) to ensure reliability. A valid U.S. mailing address is also required for the EIN application and bank. Using virtual office providers or business address services is common, but be careful to choose one that meets IRS and state standards.
- Annual filings and tax obligations: Incorporation is just the beginning. Delaware corporations must file a Franchise Tax Report and pay franchise tax every year (deadline March 1). Federally, a C‑Corp files Form 1120 (U.S. corporate tax return) annually. Foreign owners: If your U.S. company has ≥25% foreign ownership or cross‑border transactions, you must file IRS Form 5472 with Form 1120. Under the 2024 Corporate Transparency Act (CTA), companies must report their beneficial owners shortly after formation. Founders should review the FinCEN beneficial ownership reporting requirements to ensure compliance and avoid penalties.
Common Mistakes to Avoid
Choosing the wrong state: Incorporating in Delaware is popular, but if you do most business in another state (e.g. California), you may need to register and file in both places, doubling fees and compliance. Evaluate where you’ll operate and pick your state accordingly.
Overlooking the EIN: Delaying your EIN application will stall banking and payroll. Some founders wrongly assume the state filing automatically gives an EIN. Apply immediately after incorporation to avoid delays.
Skipping a compliant address: Using a friend’s address or a simple virtual office can backfire. If your registered agent’s address isn’t reliable, you could miss legal notices and lose your good standing. Always use a reputable agent service.
“Set-and-forget” mentality: Many new founders think once incorporated, they’re done. In reality, you must file Delaware annual reports, pay franchise taxes, and submit IRS returns even with no revenue. Missing these triggers stiff penalties. Calendar every deadline (state and federal) from the start.
Informal documentation: Don’t rely on WhatsApp messages or loose agreements. U.S. law expects formal contracts (founder agreements, vendor contracts, IP assignments). Mistakes in paperwork can delay filings or cause rejections.
Ignoring cross-border rules: U.S. and Indian regulations differ greatly. Misclassifying expenses or missing U.S. tax forms can lead to audits and fines. Likewise, failing to comply with India’s FEMA/ODI rules on foreign investments can invalidate your overseas ownership. Learn both systems or hire experts.
Relying solely on DIY platforms: Online incorporation services are convenient but don’t replace professional advice. They won’t automatically prepare Form 5472 or explain tax treaty benefits. Overdependence on DIY can leave critical compliance gaps.
How Profitjets Supports Each Step
Profitjets offers end-to-end assistance tailored to Indian founders:
Company formation: Profitjets guides clients through structuring and incorporation. Their team handles Delaware filings and EIN applications, ensuring all paperwork is correct.
Bank account assistance: They advise on U.S. banking options (including fintech solutions) and help prepare the required documentation for account opening.
Bookkeeping & tax: Profitjets is a leading U.S. accounting firm serving Indian entrepreneurs. They provide outsourced bookkeeping, payroll and tax services, maintaining accurate financial records and preparing audit‑ready statements.
Compliance management: Profitjets tracks all U.S. deadlines (annual reports, IRS filings, state taxes) and handles the filings (e.g. Forms 1120, 5472, FinCEN BOI) on behalf of clients. They also advise on India’s RBI/FEMA requirements.
Registered-agent services: Profitjets’s Delaware office address serves as your company’s registered agent location. They forward legal mail and ensure your company stays in good standing.
By covering incorporation to ongoing finance, Profitjets lets founders “focus on building the business” while the experts “own” the financial and compliance load.
Final Checklist
Finalize entity details: Company name checked and reserved; Certificate of Incorporation (Delaware C‑Corp) filed with initial directors and share structure.
Registered agent & address: Delaware registered agent appointed; U.S. mailing address set up for EIN and mail.
EIN obtained: IRS Employer ID received.
U.S. bank account opened: Business bank account established (or fintech account ready).
Accounting system live: Accounting software installed or accounting team hired; chart of accounts configured.
Legal documentation: Founders’ agreement, IP assignments, NDAs and vendor contracts in place.
Compliance schedule: Calendar set for Delaware franchise tax and annual report, IRS tax returns (Forms 1120/5472) and FinCEN BOI, plus any state sales tax filings.
India compliance: FEMA/ODI filings done for overseas investment, and bookkeeping ready for India taxation if repatriating funds.
Work with Startup Experts
Setting up a U.S. company is a complex journey, but Indian founders don’t have to go it alone. Partnering with experienced advisors can save time and headaches. Profitjets, for example, “assist[s] Indian entrepreneurs in every step of company registration in the USA” and provide ongoing U.S. bookkeeping, tax filings and compliance support. By working with specialists who understand both Indian and U.S. requirements, founders can confidently expand globally without losing focus on product and growth. Take the next step with experts who understand Indian startups building global companies.
