Register a US company from India

You can form a US company in any state, wherever you live. The state you choose governs the company and charges its yearly fees and taxes. Most Indian founders end up comparing Delaware and Wyoming, and the right answer depends on your plans more than on the state's reputation.

When Delaware makes sense

• You are forming a C corporation and plan to raise venture capital. Many US investors and their lawyers prefer Delaware corporations because Delaware corporate law is familiar to them.
• You expect to issue stock options, convertible notes or preferred shares, where investors' documents usually assume Delaware.
• You accept a higher yearly cost for an LLC: Delaware charges LLCs a flat annual tax, and corporations an annual report fee plus franchise tax.

When Wyoming makes sense

• You are forming an owner-run LLC with no plans for venture rounds, and you want the lowest yearly state cost.
• You want a simple yearly routine: Wyoming LLCs file an annual report with a license tax based on assets located in Wyoming, with a low minimum.
• You value speed: the Wyoming Secretary of State says online filings take effect as soon as they are completed.

When neither is the right answer

If you will have an office, employees or a warehouse in another state, the company usually has to register there too, which means a second set of fees and reports. Selling to customers in a state can also create sales tax obligations there, separately from where you form. And no state choice removes your US federal filings or your Indian tax obligations.

Compare formation fees for every state on our state fee table. For the entity details, see LLC formation, C corporation and our LLC vs C corporation guide.

Most US-focused guides skip this part. It is general information based on Reserve Bank of India (RBI) and Income Tax Department publications, not legal or tax advice. Your authorized dealer (AD) bank and a chartered accountant should confirm what applies to you.

Investing in a US company is overseas investment

Under India's Foreign Exchange Management (Overseas Investment) Rules and Regulations, 2022 and the RBI's Master Direction on Overseas Investment, a foreign entity includes a company with limited liability formed outside India, such as a US LLC or corporation. Putting money into its unlisted equity capital is generally overseas direct investment (ODI).

How it usually works for a resident individual

• Automatic route, through your AD bank. Overseas investment is generally allowed without prior RBI approval when the conditions in the rules are met. You use one designated AD bank for the investment, and reporting goes through that bank, starting with Form FC to get a unique identification number (UIN) on or before your first investment.
• Within the LRS limit. Resident individuals can remit up to USD 250,000 per financial year in total under the Liberalised Remittance Scheme, and a PAN is required. Overseas investment by individuals counts toward this limit.
• Operating businesses only. Resident individuals can generally make ODI only in an operating foreign entity, not one engaged in financial services, with further limits where the US company has subsidiaries of its own.
• Evidence and yearly reporting. The RBI's direction expects evidence of the investment to reach your AD bank within six months, and an Annual Performance Report, certified by a chartered accountant where no statutory audit applies.
• Late reporting has a cost. Missed reporting can attract late submission fees, and further remittances are not allowed until a delay is regularized.

Tax collected at source on remittances

Your bank may collect tax at source (TCS) on LRS remittances above a threshold. It can generally be credited against your Indian income tax. Check the current rate and threshold with your bank before you send money.

Indian income tax

• Residents of India are generally taxed on their worldwide income, and must report foreign assets, including an interest in a foreign company, in the foreign assets schedule of their income tax return.
• To claim credit for US tax paid, India requires a separate statement with your return. The India-US tax treaty can reduce double taxation.
• If a US corporation is in practice managed from India, India's place of effective management (POEM) rules can treat it as resident in India for tax.
• India's Income-tax Act, 2025 applies from April 1, 2026, replacing the 1961 Act, so form names and section numbers in older guides may have changed.

Firmlane does not give Indian legal or tax advice. We form and help you run the US company; your chartered accountant handles the Indian side.

An EIN is your company's federal tax ID, and the IRS issues it free. The IRS online application needs a responsible party with an SSN or ITIN and a principal place of business in the US, so a company run from India applies another way:

• Fax: Form SS-4 to the IRS international fax line. The IRS says it generally responds within 4 business days.
• Phone: the IRS international line, for applicants with no legal residence, principal place of business or principal office in the US. The caller must be authorized to receive the EIN and answer questions about Form SS-4.
• Mail: Form SS-4 to the IRS EIN International Operation, which the IRS estimates takes about 4 weeks.

On Form SS-4 the responsible party is you, the individual who owns or controls the company, never a formation agent or other nominee. If you have no SSN or ITIN, the Form SS-4 instructions say to enter "foreign" or N/A on line 7b. Current phone and fax numbers are in our international founders guide, and the full walkthrough is in EIN without an SSN.

How Firmlane helps

Firmlane's EIN assistance is included at no Firmlane fee on eligible orders, including for founders in India without an SSN or ITIN. 100% guaranteed EIN, delivered within 4 weeks.

The 4 weeks start once your company has been approved by the state and we have your complete EIN information. The clock pauses while we are waiting for information or a signature from you. Your information must be complete and accurate, and the responsible party must be able to sign the IRS application. If your EIN is not delivered within 4 weeks, we keep working on it at no cost and refund every Firmlane fee you paid on the order, or $100, whichever is more.

EINs are issued by the IRS. Firmlane prepares and submits your application through its established process and follows it through until your EIN is issued. Firmlane is not affiliated with the IRS.

Most Indian founders want two things: a US business account to receive customer payments in dollars, and a way to move money to India. Both depend on each provider's own eligibility rules, which no formation service controls.

What helps an application

• Your company's approved formation document from the state
• The IRS EIN confirmation
• Your operating agreement, or bylaws and share records for a corporation
• Your passport and a recent proof of address
• A clear description of the business, its website, customers and expected transactions

Which providers

Some US banks and financial technology providers open accounts remotely for owners who live in India; others require a US visit or do not serve certain countries or industries. Payment platforms such as Stripe and PayPal have their own country and business rules. Firmlane's free banking and payments assistance helps you choose providers that fit, prepare your documents and answer follow-up questions. Partner offers, where available, are on our founder perks page.

Moving money between India and the company

Money you send into the company is overseas investment (Section 3). Money the company pays you, such as fees, salary, dividends or distributions, is generally income in India. Keep invoices, member or board approvals and bank records for every transfer, in both directions.

Firmlane never guarantees a bank account or payment processor approval, and nobody can honestly promise one.

Owning a US company creates US filing obligations even in a year with no income. This is general information, not tax advice.

Form 5472 for a single-member LLC

• What: Form 5472 attached to a pro forma Form 1120, reporting transactions between the LLC and you, such as the money you put in and take out.
• When: by April 15 for a calendar-year company. An extension can be requested on Form 7004.
• How: it cannot be e-filed; the IRS accepts it by fax or mail, as set out in the Form 5472 instructions.
• Penalty: the IRS penalty for not filing, or filing a substantially incomplete form, is $25,000, with more if the failure continues after an IRS notice.

C corporations

A C corporation files Form 1120 and pays federal tax at 21% on its taxable income, plus Form 5472 when it is 25% or more foreign-owned and has reportable related-party transactions. Dividends paid to you in India are generally subject to US withholding, which the India-US tax treaty can reduce.

State fees and good standing

Delaware and Wyoming each charge a yearly fee or tax (shown in the live costs above). Missing it leads to penalties and can cost the company its good standing. See annual reports and good standing.

BOI reporting

Under current FinCEN rules, companies created in the US do not file beneficial ownership (BOI) reports, even when they are owned from India. Rules here have changed several times, so confirm the latest at fincen.gov/boi.

Firmlane offers optional bookkeeping and tax preparation, including Form 5472 prepared by qualified tax professionals, and compliance services for state reports and deadlines.