One of the most popular business destinations in the world is the USA. This is the reason why many Indian citizens are eager to set up businesses in the USA. But there are certain policies and protocols that need to be followed in order to set up a successful enterprise in the laissez-faire world.
The Chamber of Commerce states that 7.8 million Americans are employed by foreign investors who make up an annual payroll of USD 645 billion. The country’s administration recognizes this trend and welcomes the influx of foreign businesses that create jobs for US residents and improve the country’s economy.
US market entry methods:
The first thing to decide when entering the US market is what type of structure you want for your business. You need to select the type of unit that best suits you.
For foreigners looking to start a business in the US, the following two types of entities are recommended:
Corporation
If you want to set up a company to get funds from venture capitalists, angel investors, etc., then a C-corporation business idea would be a good option. This is because such entities are considered more professional by investors, bankers, suppliers, and employees as they are independent legal entities.
The compliance formalities of a C-corporation are more extensive than those of an LLC. You have to maintain books of accounts and follow other rules and regulations.
LLC
A Limited Liability Company (LLC) is the most adaptable corporate structure. It gives you tax benefits, liability limits, and legal protection for your personal assets. Additionally, a limited liability company (LLC) can choose whether to be taxed as an individual or as a corporation. They are commonly known as ‘pass-through’ entities. In simple terms, an LLC has the features of a partnership firm and a corporation and provides limited liability protection against claims and lawsuits.
Once you know which unit to make, the next thing you have to decide is where you want to install it. There are various states like Nevada, Delaware, Wyoming, etc. where the business laws are very favorable and the rate of taxation is also low. After registering in these states, you may choose to operate a business in other parts of the United States as well.
Steps for USA Company Formation:
The process of setting up a company in the United States consists of the following steps:
Choose a name for the company. It should be unique and should not be in use in the state where you want to set up your company.
You will then need to appoint a registered agent who has an address in the state where you are forming the company. They should be available during business hours to sign legal documents for your desired venture whenever required.
You can also apply for a Federal Employee Identification Number. This step is important if you ever want to open a bank account in the USA. Otherwise, this is an optional step.
You can also apply for a certificate of authentication. This certificate is important in case you need to open a bank account in India or submit proof that you have a company in the US (either a US corporation or LLC). Otherwise, it is optional.
Registering a US company comes with several benefits:
1. Favourable economic environment
The country offers foreign investors the to buy American assets, including real estate, at lower prices than in their own country. The wide diversity in income and interest levels ensures that there is a ready market for any type of product.
2. Governments
Many states and cities offer financial incentives to foreign investors to set up business in a particular location. These incentives are provided in the form of tax credits, lower commercial real estate taxes, and a myriad of other government aids.
Why you should do Company Registration in the USA from India?
Indian enterprises are unique in examining the US market due to their rapid expansion and globalization as well as their large English-speaking community. Most Indian enterprises with global aspirations believe that the United States is the best option as some US states have low corporation taxes and easy business rules and procedures.
Apart from this, there are many reasons to have a company registration in the USA from India. These are mentioned below.
Protection of your assets
Establishing your company in the USA is the best way to protect your assets and income from business risks. Once you incorporate your business in the United States, it becomes a separate legal entity that is liable for all obligations incurred by the firm. This implies that your company’s creditors can only seek compensation from its business assets, not the personal assets or income of the founding members, directors, or shareholders. As a result, you can run your business smoothly without jeopardizing your assets, such as your home, cash savings, property holdings, etc.
Strong branding and marketing
Having a company registered in the United States can help you develop a global image. Because the United States is one of the most developed countries, registering your company will increase your visibility, and people will want to do business with you.
Exciting and supportive entrepreneurial culture
The entrepreneurial and investor culture in the United States is bigger and more powerful in the pursuit of what has been described as the American Dream. It can be quite easy for you to get funding and promote your company concept from the early stages.
Tax benefits for non-residents
Many states in the United States offer tax benefits to entrepreneurs who want to start a business there. Financial benefits are one of these attractions, and the country has been known to cut commercial property taxes for international investors in recent years. One of the major advantages of forming your company in the United States is that corporation taxes are cheap.
Access to the latest technology
The United States has advanced technologies. This makes it more attractive for enterprises to do business there. Many entrepreneurs are starting businesses in the United States solely to gain access to top technology that will improve their business efficiency and worldwide connectivity.
Eligibility for Company Registration in the USA from India:
Company registration in the USA from India can be done only if you fulfill the following requirements:-
Directors must be 18 years of age or older.
All directors must have valid passports and address proof.
You will need a USA citizen registered as an agent to obtain company registration in the USA.
A registered agent can be an individual or firm that has a registered address in the province of incorporation.
It must be operational during office hours and must collect and verify the company’s formal legal and state paperwork. Thus, the registered agent acts as a bridge between you and the US administration.
Documents required to register a company in the USA from India:
Following are the mandatory documents for company registration in the USA from India.
Unique Company Name
Passport of all directors
Address Proof and ID Proof Documents – Aadhaar Card
Signed document for incorporation.
IRS Form SS4 – Application for Employer Identification Number [EIN]
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