Documentation & Process
Steps to Register a Company in the USA from India
The process to register a company in the USA from India can be broken down into several clear steps:
1. Choose Your Business Structure:
Selecting the appropriate business structure is one of the most critical decisions you’ll make. The most common structures are:
- - LLC (Limited Liability Company): Offers limited liability protection and is simpler to operate, making it ideal for small and medium-sized businesses. It combines the benefits of partnerships and corporations.
- - C Corporation: This is a standard corporation with more complex tax regulations but offers the ability to issue shares, making it ideal for businesses seeking to raise capital through investors.
- - S Corporation: Similar to a C Corporation but with tax benefits, as income is taxed only at the shareholder level, avoiding double taxation.
2. Choose a State for Registration:
You can register a company in the USA in any state, but popular choices include:
Delaware: Known for its business-friendly laws and favorable tax policies. It’s a preferred state for both domestic and international companies.
Nevada: Offers zero corporate income tax and has straightforward regulatory requirements.
Wyoming: Known for its low fees and business-friendly regulations, making it a cost-effective option for startups.
3. Decide on Your Company Name:
Your company name must be unique and comply with state regulations. Ensure you conduct a thorough name search through the state’s business registry to avoid any conflicts.
4. Appoint a Registered Agent:
Every US business must appoint a registered agent. This is an individual or entity with a physical address in the state where your business is registered. The registered agent will receive official government correspondence on behalf of your company.
5. File Your Formation Documents:
You’ll need to file the Articles of Incorporation (for Corporations) or Articles of Organization (for LLCs) with the state’s Secretary of State office. These documents officially register your company and outline key details, such as the company's purpose, name, and registered agent information.
6. Obtain an EIN (Employer Identification Number):
An EIN is required for tax purposes, and it functions as your business's identification number. You can apply for an EIN through the IRS, and it’s essential for opening a business bank account and hiring employees.
7. Open a US Bank Account:
Once your company is registered, you’ll need to open a US bank account to manage financial transactions. While this step often requires a physical visit to the US, some international banks and partners offer remote banking solutions.
8. Acquire Necessary Licenses and Permits:
Depending on the nature of your business, you may need federal, state, or local licenses and permits to legally operate in the USA.
Cost to Register a Company in USA from India
The cost to register a company in the USA from India can vary based on the state of registration, the type of business structure, and the services you use. Here is a breakdown of typical costs:
State Filing Fees: $50 to $500, depending on the state.
Registered Agent Fees: $100 to $300 annually for a registered agent service.
EIN Application: Free, but some services may charge a fee to expedite the process.
Legal Fees: Hiring a lawyer or professional service provider to assist with the process can range from $500 to $2,000, depending on the complexity of your business.
Annual Franchise Tax: Certain states, such as Delaware, charge an annual franchise tax. The amount varies depending on the company’s structure and revenue.
Overall, the cost to register a company in the USA from India ranges from $500 to $1,500 for basic registration, excluding additional services and travel expenses.