Globalization is the key to business success. Many of the business worlds in the business world want to set up a company in the United States. Therefore, everyone knows that starting a business in the United States is a good idea, as there are very few issues such as investment opportunities and business expansion. If you want to set up a US company in India, there are certain protocols that companies must follow. This requires a few things and preparation.
Eligibility For Company Registration in the USA From India
Business registration from India to the United States can only be done if the following requirements are met:
- Directors must be at least 18 years old.
- All board members must have a valid passport and proof of address.
- To obtain registration for a US company, you need a registered US Citizen Agent.
- The registration agent may be an individual or company that has a registered address in the state of incorporation.
- It is operational during office hours and requires the collection and checking of company official legal and government documents. Therefore, the Registration Agent acts as a bridge between you and the US Government.
Steps for the Formation of a USA Company
Before understanding the different steps to start a business in the United States, it is important to decide what type of business you want to start. The following steps will guide you through the process of setting up a company in the United States.
Firstly select a company name. It must be unique and available in the states you plan to incorporate your business into.
You need to provide a registered agent with an address in the state to be incorporated. If necessary, you need to be able to sign legal documents during business hours.
Federal Employer Identification Number-This is an optional procedure. You can also apply for a federal employer identification number and certificate of authenticity there. If you want to open an account with US Bank, you only need to have these things. Then you can apply.
Certificate of Authentication-This is also an optional step. If you need to open a bank account in India, or if you need to prove that you have a company in the United States (US company or LLC), you will need to provide a certificate or apostille.
These are easy steps to help you integrate your business in the United States. Be sure to perform each of these steps before applying to set up a business in the United States. Besides, you can also contact a professional company that can help you start a business in the United States.
What do you have to do if your company is incorporated in the United States?
When you start a business, you need to adhere to the following checklist.
Requires a physical address
Open a bank account in India
Requires US phone number
Get website and logo
You need to open a merchant account
Which form of entity should you make?
The first thing to decide is what type of entity you will create for your business. You must choose the entity type that suits you best. popularly there are two kinds of entities that foreigners prefer to form in the U.S. namely,
- Limited Liability Corporation- LLC
Limited Liability Corporation (LLC): An LLC is the most flexible business structure. It gives you tax benefits, limited liability, and legal protection for your personal assets. The liability of the members here is limited. But it is also one of the major reasons why venture capitalists do not prefer to invest in an LLC. Moreover, venture capitalists prefer to take preferred stock (just like preference shares) which ensures steady income and ownership rights as well, which can be issued by a C-corporation only.
C-Corporation: A C-Corporation or the closed corporation is the common business structure in the U.S. where the liability of the members is limited. It can issue stocks and thus has a very high potential for growth. In addition, there is no limit to the maximum number of shareholders. corporation’s compliance process is broader than LLC. The company does not limit the maximum number of shareholders
Benefits of opening a company from India to the United States
- The first advantage comes from the fact that the company’s rules and regulations are well-formed, the corporate tax rate is low and it is very attractive to international companies.
- Each state in the United States complies with its own laws and regulations that are fundamentally different from each other. states with the most complimentary business and tax laws, such as Wyoming, Delaware, and Nevada, make it easier to set up a business.
- Delaware, in particular, does not offer state sales and low franchise taxes to US SMEs. In addition, Delaware non-residents do not have to pay a separate business tax.
The United States has the largest economy in the world. US companies are more flexible than Western European companies in making decisions to increase capital investment, develop new products, and dismiss surplus. If a businessman wants to compete globally, he or she can set up a company in the United States. Whether you want to expand your business in the global market or offer products and services that appeal to the international market, registering a company from India to the United States has many advantages. Such opportunities can be very beneficial, but they are not without their own difficulties. A company is a legal entity with a unique identity, unlike the people who own or control it. By registering a company from India to the United States, business owners can expand their business in the United States, gain more profit with independence and freedom, and earn income from loyalty, capital gains, etc.