Registering a US company from India takes several days on paper and two months in reality, and it is not clear why the founders often do not understand the difference
The process of incorporation itself is relatively easy: you can form an LLC legally by filing online and designating an agent for service of process within a few days from Bangalore. The delay occurs when applying for EIN since you cannot get one without a US social security number and cannot open an account in your bank without EIN. You cannot connect a stripe without a bank account and start generating revenue with a stripe.
This guide aims to explain how to register a company in the USA from India in chronological order, what expenses are involved, and where delays can occur.
What surprised me most was how little the incorporation mattered compared to everything around it. The Delaware filing took two days. Then I sat for weeks waiting on an EIN with a company that couldn't do anything, couldn't open a bank account, couldn't take a payment, couldn't sign a customer up. If I'd applied for the EIN the same afternoon I filed, I'd have saved a month. That's the single piece of advice I'd give anyone doing this.
Anu Gupta, CA, EA, B.Tech · LinkedInWhy Indian founders form US entities
- Access to US venture capital: most US VCs require a US entity, typically a Delaware C-Corp as a condition of investment
- US customer and enterprise sales: many US enterprise buyers require vendors to have a US legal entity and US bank account for procurement and payments
- Hiring US employees: a US entity is required to comply with US employment law, payroll taxes, and employee benefits
- US payment processing: Stripe, PayPal, and other US processors work best with US entities; international accounts face higher fees and limits
- IP ownership clarity: assigning IP to a US entity simplifies due diligence for investors and acquirers
Types of Business Structures in the USA
| Structure | Best For | Tax Treatment | VC Ready? |
|---|---|---|---|
| Delaware C-Corp | Startups raising venture capital | 21% corporate tax (C-Corp), then dividend tax on distributions | YES, standard VC structure |
| Delaware LLC | Self-funded small business; privacy-conscious owners | Pass-through to owners' personal return | NO, VCs generally require C-Corp |
| Wyoming LLC | Asset protection, low cost, privacy | Pass-through to owners' personal return | NO |
| S-Corp | Profitable small businesses with US owners only | Pass-through, but payroll tax savings on distributions | NO, foreign owners cannot hold S-Corp stock |
Note: Non-US persons (including Indian founders) cannot be shareholders of an S-Corporation, it is only available to US citizens and permanent residents. If an Indian founder inadvertently forms an S-Corp, the election is invalid and the company defaults to C-Corp taxation.
The US federal corporate income tax rate for C-Corporations is 21% (flat rate, unchanged since the Tax Cuts and Jobs Act 2017). The US population is approximately 335 million, the world's largest single-language consumer market.
What the timeline actually looks like
The step table makes this look like a two-week exercise. It isn't, and planning around the optimistic version is how founders miss commitments.
- Week 1: FEMA advice taken, entity type decided, formation filed, registered agent appointed, EIN application sent. All of this genuinely happens fast.
- Weeks 2 through 8-ish: waiting on the EIN. Corporate documents get drafted during this period, and your Indian reporting gets completed. Commercially, nothing moves.
- After the EIN arrives: bank account within days, payment processor onboarding within a week or two after that.
So: roughly two months from decision to taking payments, with the middle six weeks being an EIN queue you cannot accelerate. If a customer commitment or a fundraise depends on the entity existing and transacting, start well before you need it.
Step-by-Step Guide to Registering a Company in USA from India
| Step | Action | Timeline |
|---|---|---|
| 1 | Choose entity type: Delaware C-Corp (VC path) or LLC (self-funded) | Day 1 |
| 2 | Choose registered agent service (Registered Agents Inc, Northwest, or similar) | Day 1 |
| 3 | File formation documents with Delaware Secretary of State (or use Stripe Atlas / Firstbase / Clerky) | Days 1-5 |
| 4 | Draft corporate documents: certificate of incorporation, bylaws, initial board resolutions, stock issuance (attorney recommended) | Days 1-14 |
| 5 | Apply for EIN from IRS (Form SS-4 by fax/mail for non-US founders, takes 4-8 weeks) | Day 1, file immediately |
| 6 | Open US business bank account (Mercury, Relay, or Brex recommended for remote/foreign founders) | After EIN received |
| 7 | Comply with FEMA/RBI requirements in India (ODI / OPI filing via authorised dealer bank) | Consult FEMA CA, before or at investment |
| 8 | Set up US payroll and accounting (if hiring US employees or paying yourself US salary) | Before first US hire or payroll payment |
How Profitjets Helps with Company Registration in USA from India
Profitjets works with Indian founders from the moment of US incorporation letting up the chart of accounts, establishing bookkeeping systems compliant with US GAAP, handling quarterly estimated tax obligations, and preparing for annual filings.
For founders running entities on both sides, we handle the US accounting so the only thing you're managing across two jurisdictions is the business itself.
If you've formed a US entity or are about to, Profitjets handles the accounting side from day one: books, filings, and the deadlines nobody warns you about
Book a free consultation and we will look at both sides.
Frequently Asked Questions
Can I open a US company from India without visiting the US?
Yes, entirely. Formation, registered agent appointment and the EIN application are all remote, and platforms like Mercury open business accounts for foreign-owned US entities without a visit. Some traditional banks still require in-person appearance, which is why most non-resident founders use the newer platforms.
How long does the whole process take?
Plan for around two months from decision to being able to take payments. The formation is days; the EIN is the constraint and has historically run for weeks on the non-resident application route. Everything commercial waits behind it, so apply the day you form.
What are the annual compliance costs?
For a Delaware C-Corp: registered agent $100 to $300, Delaware franchise tax in the low hundreds for an early-stage company using the assumed par value calculation, and US tax preparation typically $500 to $2,000 depending on complexity. For an LLC, the Delaware annual tax is $300 flat. Add state registration costs if you acquire presence elsewhere: California alone is $800 a year. Budget $1,500 to $4,000 annually for a lean early-stage operation, and note that none of this includes FEMA compliance on the Indian side.
Do I pay tax in both India and the US?
Possibly. The US taxes US-source income; India taxes residents on worldwide income with credit available for foreign tax paid. The India, US treaty reduces double taxation on salary and certain business income, but applying it correctly depends on your structure and how you take money out. Take dual-jurisdiction advice before you decide how to compensate yourself from the US entity, not after the first filing.
Can I form an LLC now and convert to a C-Corp later?
Yes, and plenty of founders do. Conversion is well-trodden but costs attorney time and happens under deal pressure during a financing, with the bill scaling to how complex your cap table has become. If a raise is genuinely likely within a year, starting as a C-Corp is usually cheaper overall.
Written by
Anu Gupta, CA, EA, B.Tech
Anu works with US businesses on tax and entity questions at Profitjets, from choosing a structure to the filings that follow it. She writes about the decisions owners make once and then live with for years. Connect on LinkedIn
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