Setting up a Business in USA from India:Best Tip Ever

Are you the owner of a startup in India looking to expand business or have an established company willing to plant subsidiaries in the United States of America? The USA is heaven for potential business relationships due to its vast scope in enhancing capital investments, financial transactions, and the growth of a company in general. Ideally, by setting up a business in the USA from India, you have a chance at creating new opportunities for the company and your employees. The procedure is very similar to how you would incorporate a company in any state in India and requires the fulfillment of a few prerequisites.

Setting up a Business in the USA from India: Best Tips Ever

Situations to Consider Before Setting Up Your Company in the USA

If you are planning to set up your business in the USA, three situations can be considered to suit the operations of your company:

• Whether Your Company Will Be Set Up in the USA and Its Various Procedures Would Be Overseen in India: This means managing the business operations and compliance from India while the company is established in the USA.
• Whether You Would Establish a Subsidiary of Your Indian Firm in the USA and All the Likely Operations Would Be Carried Out There Itself: This entails having a fully functional branch or subsidiary in the USA, managing operations locally.
• Whether the Company’s Marketing and Management Would Be Run in the USA and All the Other Services Would Be Carried Forward in India: This scenario involves having a marketing and management base in the USA while other functions are handled from India.

Irrespective of which factor you finalize on, you will be able to establish your company in the United States of America with ease.

Types of Company Incorporation for Non-Residents in the USA

Currently, you can avail two kinds of business structures as a non-resident if you wish to incorporate in the USA:

• Limited Liability Company (LLC): The advantage of establishing an LLC lies in the fact that no personal losses are incurred in the situation where the company is going through a loss of profit or assets. Further, there are no restrictions on the sharing of profits between two or more members of an LLC. The limited liability feature is ideal for high-risk businesses as it offers the benefits of both partnership and corporation business structures as a whole. To form an LLC in the USA, you will require the following documents:
  • Certificate of Formation
  • The LLC Agreement
  • An Agreement of Confidentiality Between the Members
• C-Corp: If you wish to establish a startup in the USA, the C-Corp business structure would be most suitable for you. There is a surplus demand and opportunity to expand, without much interference from the IRS in a C-Corp structure. Although C-Corps are double-taxed, it can be overcome with tactical moves laid out by the company in garnering their profit. The legal entity of a C-Corp lies separate from its owners, preventing the scope for any personal liability. You will require the following documents to form a C-Corp as a non-resident in the USA:
  • Articles of Incorporation
  • Bylaws Stating the Names and Addresses of All the Shareholders and Officers
  • An Agreement of All the Shareholders of the Company

There is another kind of business structure called the S-Corp, which is considered viable by most business professionals. However, an S-Corp is only available to citizens in the USA.

VISA Options Required for Indians to Set Up a Business in the USA

Although you do not need a VISA to set up a business in the USA from India, it is always beneficial to apply for one in case you need to visit your firm in the USA to discuss significant matters related to the company or are organizing events on behalf of the company there. There are two types of VISA options you can opt for as a business professional managing his or her business in the USA:

• B-1 Visa: The B-1 Visa allows you to visit the United States of America for 6 months and is granted by the government to promote business and entrepreneurship. It is valid for ten years and can be extended upon your requirements. The B-1 Visa is helpful for companies looking to expand in the various states in the USA.
• E-2 Visa: The E-2 Visa is helpful for non-residents willing to establish startups in the USA. A minimum investment of $100k should qualify you in availing this visa, in addition to a controlling share of at least 50 percent of your company.

If you wish to apply for these visas or have a query regarding other visa options, contact Water and Shark to guide you through the process.

What Requirements Do You Need to Fulfill to Set Up Your Business in the USA?

Once you decide on the business structure you want to follow for your company’s incorporation in the USA from India, you need to fulfill some additional requirements in order to finalize setting up your business. The below-mentioned requirements are essential for the company’s formation in the United States of America:

• The name of the company, which could be taken from the parent firm in India in case it is a subsidiary in the USA. If you are setting up a new business in the USA from India, decide upon a name that clearly states your vision.
• Names and addresses of the members of the company.
• A bank account associated with your company in the USA.
• A Certificate of Authentication for your company’s operation in the USA.

Since US companies are incorporated at the state level rather than the federal level, the location of your company will determine its local address. The choice states for business in the USA include Delaware and Nevada. To set up a bank account for your company in the USA to settle financial transactions, one of the following methods can be adapted for ease of payments:

• Using your visitor visa, arrive at the USA and open a bank account personally.
• Open a bank account for your company in the USA using any of its branches located in India. This would be with respect to the bank’s policies and is a good option for identity verification without traveling long distances.

Your business in the USA will be established in no time, and you can go forward with its operation and management without any hassles. Trust Water and Shark to help you at every stage and even recommend various benefits for the type of business you wish to adopt in the United States of America. Get in touch with us today to gain insights on which business plan suits you the best.