Thursday, February 18, 2021


Before starting the process of registering a company in the USA, an entity from India interested in running a business in the United States, opening a branch in America, should become familiar with the practical issues and legal restrictions imposed by law in the USA and the American market it. Lack of knowledge about such restrictions, or hiring an adviser who offers a cheaper company registration service in the US, will most often be a costly mistake for a Indian entity starting business activity on the American market.


Company registration in USA from India is not easy. The choice of the appropriate legal form for a company starting a business in the US will most often be limited by the shareholder's tax residence in the US Company. When selecting the appropriate legal form for a US-registered business entity in which a shareholder is a non-US citizen or resident, a lawyer familiar with US commercial law should take into account, among others.

·         The main location where the registered US Company will conduct business in the United States. It is worth noting here that "Internet knowledge" may lead an India shareholder in a new company on the US market to costly mistakes on the US market. For example, an Indian shareholder choosing the State of Delaware to register an entity in Delaware for the sole purpose of "avoiding taxes" will be very disappointed to sell online outside the State of Delaware or using a warehouse in another US state. For example, New York State law says that a Delaware online retailer using a New York City warehouse will automatically acquire the NYC tax nexus, which means that they will meet their New York State and NYC tax obligations.

·         A business plan of a foreign entity introducing a product or service to the US market. Very often, a foreign entity plans to open an entity owned by an India company, i.e. a parent-daughter company. In the current situation on the American market, there are certain limitations that make it difficult for a subsidiary to conduct business.

·         Individual requirements of shareholders in a newly established US company. For example, when using a limited liability company, two shareholders of a US company may have equal shares in a US entity, while the distribution of a US entity's profit or loss need not be proportional to the shares held. The law in the USA also allows for the creation of an entity in the USA with an American shareholder, where the rights to manage the company in the USA, making key decisions, will be entirely transferred only to the local shareholder.

·         You should Obtain an EIN i.e. Employer Identification Number. Offshore Company Corp. offers an inexpensive service to help you obtain a tax ID for your business with the IRS. This quick and easy service avoids the often confusing IRS forms and procedures, and includes professional customer support. If you are starting a new business with Offshore Company Corp, you can save time and request an EIN for you when applying for your company or LLC. When you complete our company order form, simply select if you'd like us to receive your federal tax identification number as well as your preferred delivery date and the Offshore Company Corp will do the rest.

·         Individual requirements of investors investing in an entity introducing Polish services or goods to the American market. Very often, American investment funds only invest in c-corporations.

·         Formal requirements imposed by state law in the USA on an entity conducting business activity in its territory. For example, an LLC cannot be used to provide engineering services in the State of New York.

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